The Deputy Managing Director, TotalEnergies EP Nigeria Limited, Victor Bandele, said improved fiscal incentives and a better investment outlook in Nigeria have revived the company’s deepwater investment programme, with the firm returning to project sanctioning and exploration after years of inactivity.

Speaking at the Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) in Lagos, Bandele said the company had moved from speaking about past achievements to executing new projects following changes in the operating environment.

Speaking on the topic ‘Policy in Practice: Aligning Fiscal Strategy, Foreign Investment and Local Content for Sustainable Growth in Nigeria ‘, Bandele said the company’s Ubeta project reached Final Investment Decision (FID) in 2024 after incentives for natural gas production were improved, adding that the project is currently under execution and is expected to begin production next year.

“I used to talk about the past glory, the things that my company has done. I used to talk about Akpo… I used to talk about our capacity as TotalEnergies to do Egina, which was the last deep offshore project executed in Nigeria in 2014. That project achieved its first oil in 2018 and since then we’ve not put another deepwater project on stream.

“But I’m happy today to speak about projects that have matured because of the shift in processes,” he added.

Bandele said the Ubeta project would rank among the company’s projects with the highest level of Nigerian content, noting that many indigenous companies are participating in its execution.

“We took FID in 2024 on Ubeta. Ubeta project is ongoing as we speak. I think it will be one of the projects that have had the highest local content because we have so many local Nigerian companies participating on Ubeta and it should be in production by next year.

“Incentive improved, project sanctioned and project will be delivered,” he affirmed.

He also disclosed that TotalEnergies is working to conclude the final investment decision on the Ima project with its partners, saying the decision is imminent while first oil is planned for the fourth quarter of 2028.

According to him, the company is equally advancing work on other deepwater opportunities while returning to exploration activities.

“We are drilling an exploration well. We are drilling two additional exploration wells in 2027. It tells you that the motivation to go back into projects is improving significantly.”
Bandele said the renewed project pipeline presents an opportunity for Nigerian companies to position themselves for increased participation as more investment decisions are taken.

“If you are a Nigerian company that is established now, this is your moment. If you have projects that are taking FID, people just need to take position and be prepared for the big time.

He stressed that this is the time for execution, noting that local participation would be critical to the profitability of future projects, saying some aspects of project execution could no longer depend on imports.

Bandele also said competition for investment capital has intensified across Africa, with Nigerian projects competing alongside opportunities in Namibia, Uganda and Angola.

He noted that an improved perception of Nigeria has strengthened the company’s ability to secure funding for exploration and project development.