Oil/gas sector dormant in exploration, new projects due to regulatory uncertainties—Total
Leading oil and gas exploration giant and core investor in the Egina FPSO, Total has decried grow years of dormancy in upstream activities in the nation’s oil and gas sector due to regulatory uncertainties ahead of PIB assent.
Chief Executive Officer of Total, Patrick Pouyanne, in an interview argued that delays in issuing new exploration licences due to redundancy in completing legislative works on industry regulations is driving confusion and inactivity in the sector.
Pouyanne said, “I hope the new government that will come after the election will launch new tenders for awarding new exploration licences,” revealing that Total would approve plans to proceed with the Ikike project in Nigeria in the coming months, and also aimed to expand its liquefied natural gas project in the country.
Business Hilights recalls that Total is one of the strongest players in the African oil sector, holding more proven reserves on the continent than any of the other top global oil companies.
Besides, the 60,000 barrels-per-day Ikike project is one of several projects the group has earmarked in Nigeria for a final investment decision, including the 70,000 bpd deepwater Preowei project, which would help Total increase its oil production.
Total boss further agreed that “There is a huge potential in Nigeria, it is probably the most prolific country in West Africa in terms of oil and gas and it is time to launch new projects and we are working on many of them”.
Explaining more on the sidelines of a meeting between Nigerian and French businesses in Paris, he noted that “On the same area as Egina, we have Preowei, which could be connected to Egina, We are working on that,” Pouyanne said.
Total also planned to expand its Nigerian LNG project this year, he said.
“The market is very good today to do that; it is a very interesting project and the partners are in line to develop it… 2019 should be the year of expanding Nigeria LNG,” he added.
“Total is also developing Uganda’s first oilfield with China’s CNOOC and Pouyanne said the company would make a final investment decision this year on whether to start production. Uganda has said it expected to start producing oil in 2021.
Earlier, Pouyanne said he recently told Ugandan President, Yoweri Museveni, that Total would also be willing to take a stake in a refinery to process crude from the field which is due to be built and operational by 2023.
Uganda signed a deal with a consortium, including a subsidiary of General Electric, to build and operate a 60,000 bpd refinery that will cost $3bn-$4bn
