Total invests $10bn in Nigeria in five years despite challenges

Total Exploration and Production Nigeria Limited said it has invested $10billion in last five years and added 2.3billion barrels of crude from exploration since 1996.

The Managing Director/Chief Executive of Total Exploration and Production Nigeria Limited, Nicholas Terraz, says “at Total, we added over 2.3 billion barrels to Nigeria’s production from 1966 to 2015 and, in the last five years alone, we have made approximately $10 billion of investment in the Nigeria. Through decades of executing development projects, Total’s activities have contributed to creating jobs and developing human capacity in Nigeria.

“Despite the challenging operating environment, Total remains strongly committed to the developments of its activities in the country, while working relentlessly to adapt to the current environment.

“In September 2015, we achieved first oil from the Ofon Phase 2 Development Project, which will increase production capacity from the Ofon field by 60,000 barrels of oil equivalent per day. Development drilling is currently on-going to reach the production plateau.

“Beyond the incremental production, this project also eliminated routine flaring in Ofon field and allowed monetization of the gas from Ofon. This was recognised by the World Bank – sponsored Global Gas Flaring Reduction Partnership, which gave an Excellence Award to our Ofon-2 Project on 9th September 2015, for this achievement.”

Speaking at the recently concluded 2016 Nigerian Association of Petroleum Explorationists (NAPE) Conference in Lagos, Terraz argued that “In October 2016, Total commenced delivery of domestic gas to the Eastern sector via our Northern Option Pipeline (NOPL) project, with first gas deliveries to the Alaoji Power Plant.

“In addition, our Egina deepwater Project, currently under development, will add 200,000 barrels per day to the national oil production by 2018. A key feature of Egina development is the project’s record-setting contributions to in-country value. We are proud to say that the Egina Project has the highest level of Nigerian content of any oil & gas project to date.”

Furthermore, he posited that the current challenging economic environment is making operators in the industry to defer investments and minimise development drillings. He said the situation was being aggravated by funding challenges for the joint ventures as well as low oil prices.

“Throughout 2016, we have faced a challenging economic environment, with an average oil price around $45 per barrel. This environment requires us to adapt and reduce cost without compromising safety, while preparing for a future of growth or expansion.

“While the impact of the low oil price is not peculiar to only Nigeria, the country is particularly affected because a large part of its revenue comes from the hydrocarbon sector. In addition to low oil price, Nigeria has also experienced a reduction in production volumes due to security issues,” he said.

“Despite the challenging operating environment, Total remains strongly committed to the development of its activities in the country, while working relentlessly to adapt to the current environment,” he added.