In its quest for growth, Total aims to become a Responsible Energy Major in Nigeria.
The Managing Director, Total E&P Nigeria Limited, Mike Sangster, stated this at the Management Session Of The 37th Nape Annual International Conference and Exhibitions 2019, held recently in Lagos.
“Our ambition is to become the “Responsible Energy Major” and this is the meaning of our motto “committed to Better Energy”. This ambition challenges us to provide more reliable, affordable and clean energy to the world’s growing population”, he said.
“The Total Group has been present in Africa for more than 80 years and has been involved in exploration activities in Nigeria for 57 years. We have a broad and diversified portfolio in Nigeria, with activities spanning onshore, conventional offshore, deepwater and LNG. Total has developed a strong partnership with the Nigerian National Petroleum Corporation (NNPC) and other partners”, he added.
Total’s upstream branch according to him plays a significant economic and social role in Nigeria, operating nearly 15 percent of the country’s production.
“Nigeria, as one of our core areas of activities, is also crucial to the Total Group, accounting for 12 percent of its equity production. In the last five years, Total has invested approximately 10 billion US dollars in the country”, he stressed.
“Total shares the concern and commitment of the global community on global warming, which is why Total came up with a strategy to vigorously expand its presence in the gas sub-sector. We believe that natural gas is a growing market of both now and the future. We also already know that natural gas is twice as clean as coal for generating power – so we’re going after it for both environmental and business reasons”, he further stated.
“We are proud to say that we achieved 100 percent gas flare out on our Ofon Field in December, 2014 and the gas is currently monetised. In 2015, Total E&P Nigeria received the World Bank – Global Gas Flare Reduction Partnership (GGFR) Excellence Award. This is a major milestone in line with the aspiration of Government, which is why our Ofon flare out achievement has been proposed as part of Nigeria’s Nationally Determined Contribution (NDC) to greenhouse gas emissions reduction. We are committed to achieving zero flarings in all our operations”, the MD said.
“Similarly, our flagship deepwater Egina Field, which came on stream in December last year was also commissioned with zero flare out and has added 10 percent Nigeria daily oil production. In fact, since 1999, all Total projects in Nigeria are sanctioned on a no-flaring policy”.
“You will also recall that in 2016, the NNPC -Total E&P Nigeria Limited joint venture commenced the supply of gas to the Alaoji Power Plant in Abia State. This became possible after the completion and start-up of the Obite-Ubeta-Rumuji (OUR) Pipeline and the Northern Option Pipeline projects by the NNPC/TEPNG JV in August 2016. The completion of these pipelines is an important milestone in the activities of Total in Nigeria. The NOPL is unique and strategic in meeting the Federal Government’s objectives of gas supply to the domestic market”, he noted.
“Our partnership with the NLNG is well known. We are an NLNG partner with 15 percent stake in the company, which has a liquefaction capacity (Trains 1- 6): 22 MT/Y of LNG. But the planned Train 7 will increase NLNG capacity from 22 to 30 MTPA. Total is committed to the Nigerian Gas Master Plan – reducing flaring and monetizing gas. We are also committed to the supply of additional gas to NLNG train 7 for increase of NLNG capacity. We have signed three Gas Supply Aggregation Agreements (GSAA) and we take our domestic gas supply obligations under these agreements quite seriously”, he maintained.
The MD however noted that the company was aware the challenges in the areas of infrastructure; legal and regulatory framework; commercial framework (pricing policy) via the National Domestic Gas Supply & Pricing Regulations of 2008 vis-à-vis the new National Gas Policy approved by the Federal Executive Council (FEC) in 2017.
“There is also the question of funding mechanisms for the sector because, as we all know, investments in PSC oil projects are recovered from oil but no mechanism is currently agreed for cost recovery or profit sharing for investments in gas projects”.
….By Simon Ugwu