By Adewole Kehinde
According to the Sustainable Development scenario put forward by the International Energy Agency (IEA), oil and gas are set to continue playing a vital role in meeting the world’s energy needs, accounting for nearly half of the primary energy mix in 2040.
President Muhammadu Buhari in Paris, France on Wednesday met the management of Total Plc. In the meeting, the President discussed the need for improved fiscal stability with the Chairman/Chief Executive Officer of the Company, Patrick Pouyanne.
This was disclosed by the Nigerian National Petroleum Corporation (NNPC) via its Twitter handle.
It tweeted, “HE President @MBuhari today granted audience to Chairman/CEO of @Total, Mr Patrick Pouyanne in #Paris, France where he discussed the need for improved fiscal stability & attractiveness that are necessary for continuing investment into Nigeria’s vibrant oil/gas industry.
At the meeting, @Total CEO emphasized the great potentials of the Nigerian hydrocarbon industry, providing assurances to Mr President of his company’s commitment to continue to invest in Nigeria particularly in gas production & supply for both domestic & export through @nigeriaLNG.”
Also, the board of Total Plc revealed its intention to expand its investments plans in Nigeria, to the Federal Government. The Oil and Gas firm plans to expand its investments not only in oil and gas but also in renewable energy, and other areas.
This was disclosed by President Muhammadu Buhari via his Twitter handle after he met with the Total team led by its Chairman, Patrick Pouyanne, in Paris, France.
He tweeted, “Nigeria and @Total will continue to be strong partners for investment and development, for the mutual benefit of both parties
“In my meeting today with the Chairman and CEO of @Total, @PPouyanne, I stressed the fact that Nigeria is more a gas country than a crude oil country. Our administration is laying a solid foundation for Nigeria to realize its full gas potential.
@Total has been an important part of Nigeria’s oil and gas journey for decades, and we thank them for their consistency. We will continue to work hard to enhance fiscal stability that will favor them and other investors in Nigeria.
A lot of investment opportunities abound in the natural gas sector of the Nigerian Petroleum industry. Increasing attention is now being given to this vital sector.
Government’s aspirations for the gas sector include creating new industries out of the old oil industry; capturing economic value and generating as much revenue from gas as from oil. Others are developing the domestic gas market and, ending gas flaring by 2030.
Remarkable progress has been recorded towards the realization of these objectives. Of the current annual gas production of about 2,617.67 Bscf, about 9.48% is flared for the period January to December, 2016.
This is a drastic drop from the 40% proportion flared before the advent of this administration. The hitherto flared gas is being channeled into gas powered projects for rapid utilization and monetization with a view to maximizing value addition to the nation’s natural gas resource.
Domestic gas consumption is expanding as a result of the ongoing power sector reforms while gas export which was non-existent prior to 1999, has received a strong boost.
As a broad energy company present across the entire oil and gas value chain, Total aim to provide hydrocarbons that are more affordable, more reliable, cleaner and accessible to as many people as possible. In an industry with an ever-growing number of constraints, Total harnesses its expertise and innovation capabilities to prepare the future of energy for the planet.
Producing oil and gas in a sustainable way also means being able to adapt to evolving requirements and limitations in the industry while capitalizing on the opportunities it offers. Energy markets have been characterized by highly volatile prices since 2015. Total integrated model has been invaluable in dealing with these conditions, providing the basis of our Group’s extreme resilience.
Oil and gas fields are becoming more complex and less accessible, making resources more and more difficult to find and develop in a sustainable way. Total is increasingly able to leverage digital technology to rethink its exploration and production methods, for improved subsurface visualization, for example or reduced logistics costs.
To meet the key challenges in the oil and gas industry, as well as the needs of its partners and stakeholders, Total strive to produce energy that is more affordable, more reliable, cleaner and accessible to as many people as possible every day. To this end, Total is working to optimize its portfolio, all while improving safety for people and equipment and enhancing our environmental performance.
To produce more affordable oil and gas, Total carefully manages costs through a number of far-reaching initiatives, enabling it to constantly optimize its portfolio and invest in highly competitive projects. Total also take much disciplined approach to investing so that it can maintain its competitive edge over the long term and ensure that our production is in line with increasing global demand for oil and gas.
Comprehensive and integrated gas utilization Master plan/programmes have been embarked upon, in which LNG and IPP developments are being given priority.
The expected increased export earnings from LNG, coupled with adequate domestic power supply from IPPs, will strongly support and broaden economic expansion and urbanization, increase the income generating capacity of Nigerians and lift the general wellbeing.
It will further reinforce Government’s efforts towards integrating the Host communities into the mainstream of national development and growth.
Adewole Kehinde is the Publisher of Swift Reporters and Energy Fellow of the Abuja Chamber of Commerce and Industry Policy Centre. He can be reached via 08166240846, 08123608662
