TotalEnergies will invest $550 million in Nigerian gas projects

French integrated multinational energy and petroleum company, TotalEnergies will invest $550 million to develop gas processing facilities in Rivers State to increase exports and domestic supply.

A source at the Nigerian National Petroleum Corporation NNPC Limited (NNPCL) told Reuters on Wednesday.

He said the investment would include gas processing plants and pipelines.

The source added that the announcement of the agreement would be made this week.

This development comes weeks after the oil company shunned Nigeria and located a $6 billion energy project in Angola, citing inconsistencies in policymaking in the West African country as the main reason for the decision.

TotalEnergies CEO, Patrick Pouyanne, at a panel of African CEOs in Kigali, Rwanda, said despite the Niger Delta’s status as the most productive region in West Africa, the volatile policy landscape has led to unsustainable investment.

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He added that his party had not conducted oil exploration in the area for 12 years.

Pouyanne said: “Nigeria likes to open topics without closing them. You like to argue. There are always new legislative bodies in Nigeria that legislate new petroleum laws. If there is constant debate, it is difficult for investors looking for a long-term structure to know which direction to go.

“In fact, the Niger Delta is the most productive region in West Africa. But if you look at what happened, because of this debate, there was not a single exploration in Nigeria for 12 years. It is important to have a debate and then resolve it and establish a framework that investors can trust.

“We have countries that have perfectly integrated policies like Angola. So, we went to Angola and announced a very large $6 billion project at the beginning of the week because their framework was stable there. So, we know where we are going.”

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