TotalEnergies, NAOC Visit to NCDMB Inspires Hope for 2024 Oil & Gas Projects

The prospects of breathing new life into Nigeria's oil and gas sector and bolstering local content initiatives seem promising, with Mr. Matthieu Bouyer, the Managing Director and Country Chair of TotalEnergies E&P Nigeria Limited, confirming the company's intent to make the final investment decision (FID) on the Ubeta gas project in 2024. This announcement was made during a recent visit to the Nigerian Content Development and Monitoring Board (NCDMB), where the primary agenda was to extend congratulations on the appointment of the executive secretary and reiterate Total Energies' commitment to advancing oil and gas projects that bring value to the nation, enhance Nigerian content, and deliver returns to shareholders.

Total Energies E&P Nigeria Limited has a commendable track record in the country, having successfully executed key oil and gas projects over the past decade. These projects, spanning both deepwater and shallow water operations, have set records for Nigerian content, exemplified by milestones like the fabrication of six modules for the Egina Floating Production Storage and Offloading (FPSO) vessel within Nigeria. The company's determination to unlock new projects in Nigeria was emphasized during the visit, and they sought continued cooperation from the NCDMB for expedited Nigerian content reviews and approvals.

The Ubeta gas project, located in Oil Mining Lease (OML) 58, is an onshore initiative designed to contribute gas to the Nigeria Liquefied Natural Gas (NLNG) plant, addressing domestic gas supply needs. The company aims to collaborate closely with the NCDMB to facilitate the rapid development of the Ubeta project, thereby increasing crude oil production and revenue for the country. Additionally, the Preowei deepwater project, situated in OML 130 north of the Egina field, with a water depth of approximately 5,904 feet, is on the horizon. Total Energies expressed its commitment to working closely with the NCDMB to ensure the project's swift development.

During the meeting, the executive secretary assured the TotalEnergies E&P team that the NCDMB would expedite the necessary approvals, supporting the company's efforts to swiftly execute its oil and gas projects. The Board, emphasizing its commitment to streamlining processes, referenced the Service Level Agreement (SLA) in place with industry stakeholders to shorten contracting cycles. The NCDMB pledged to enhance the turnaround time for project approvals, reinforcing its dedication to fostering a conducive environment for project implementation.

Another critical aspect discussed during the meeting centered on TotalEnergies E&P's commitment to pooling resources into the Human Capacity Development (HCD) Fund on its projects. This fund would be strategically utilized for Human Capacity Development initiatives in alignment with the Guideline for Nigerian Content Human Capital Development Implementation Strategy, introduced by the NCDMB in June 2020. The ongoing reconciliation of Total Energies E&P's remittance of the Nigerian Content Development Fund (NCDF) was also deliberated upon, further underscoring the collaborative efforts between the company and the regulatory board.

TotalEnergies E&P Nigeria Limited's reaffirmation of its commitment to crucial oil and gas projects, particularly the Ubeta gas project, signals a positive trajectory for the Nigerian oil and gas sector. The collaboration with the NCDMB, as evidenced by the constructive discussions during the visit, is crucial for overcoming regulatory hurdles and expediting project development. As Total Energies advances its initiatives, the concerted efforts between the company and the NCDMB are expected to contribute significantly to the growth of the Nigerian oil and gas industry, reinforcing the importance of strategic partnerships in advancing the nation's energy landscape.