- TotalEnergies plans to approve a $750 million gas project in Nigeria next year to boost LNG supply.
- Nigeria seeks to attract $10 billion in new investments for deep-water gas exploration through tax incentives and regulatory reforms.
TotalEnergies, the French energy giant, is set to approve a $750 million gas project in Nigeria next year, signalling potential progress in the country’s efforts to attract renewed investment in its oil and gas sector. Mike Sangster, Senior Vice President of Africa, Exploration and Production at TotalEnergies, revealed the plans at today’s France-Nigeria business forum in Paris.
The project, named Ima, is a shallow-water gas initiative developed in partnership with a local company. It aims to boost gas supply to Nigeria’s Liquefied Natural Gas (LNG) facility. Sangster expressed optimism about the project’s potential, with plans for sanctioning it in 2024.
Earlier this year, TotalEnergies committed an additional $500 million to a joint venture with Nigeria’s state-owned Nigerian National Petroleum Company (NNPC) Limited to develop the Ubeta onshore field. Expected to produce 300 million cubic feet of gas per day, the Ubeta project will also contribute to the gas supply for the Nigerian LNG plant.
Since President Bola Tinubu assumed office in May 2023, he has prioritised reforms in Nigeria’s oil and gas industry, signing two executive orders to improve sector efficiency. The country also strives to secure up to $10 billion in investments for deep-water gas exploration, offering tax incentives and other measures under a new policy framework.
Sangster acknowledged progress in the regulatory landscape over the past year, noting that these changes have motivated TotalEnergies to continue investing in Nigeria. He also emphasised the importance of further easing local content regulations to attract international contractors with deep-water expertise, which would foster competition and encourage the return of investments that had previously been suspended.