TotalEnergies eyes $750m gas project in Nigeria

French energy giant TotalEnergies is poised to invest an additional $750 million in Nigeria’s gas sector.

Mike Sangster, Senior Vice President for Africa at TotalEnergies, confirmed that the company plans to sanction a shallow-water dry gas project called Ima next year, which would further increase LNG supplies, according to Bloomberg.

This investment, coupled with the $500 million already allocated to the Ubeta onshore field development, underscores Nigeria’s growing attractiveness as an investment destination for the energy sector.

The Ubeta project, a joint venture with the Nigerian National Petroleum Company (NNPC), aims to boost gas supply to the Nigerian Liquefied Natural Gas (NLNG) plant.

Since taking office in May 2023, President Bola Tinubu has made efforts to address challenges in Nigeria’s oil and gas sector. Among these, he signed two executive orders aimed at improving efficiency. The country is targeting up to $10 billion in new investments in deep-water gas exploration through tax incentives and policy reforms.

Sangster expressed optimism about the recent regulatory changes and noted that these improvements have encouraged TotalEnergies to renew its investment plans in Nigeria, helping reverse the decline in production.

He called for more flexibility in these regulations to attract international contractors specializing in deep-water projects, ultimately stimulating competition and unlocking new investment opportunities.