Oil
Total targets 160,000 bpd from Nigerian USAN deepwater field, 400MW power generation
the development of three deepwater projects, presently at different stages of development in Nigeria’s offshore, could catapult Total, which is currently the fourth largest oil and gas producer in the country, to second in the next five years.
ABUJA – Total Upstream Companies in Nigeria has promised to intensify its corporate social responsibility activities to extend beyond its immediate neighbours to include a focus on a new vision for sustainable development for the entire nation.
Meanwhile, Total group has disclosed that it was targeting over 160,000 barrels per day (bpd) from its deep water USAN field.
Managing Director and Chief Executive of Total Upstream Companies, Mr. Guy Maurice, who disclosed this at the first ever Corporate Social Responsibility (CSR) Conference with the theme, Listening and Engaging with Stakeholders, in Abuja, noted that the conference was an effort to mobilize the willing participation of a diverse population of Nigerians to improving the companies CSR thinking and actions.
Mr. Maurice further revealed that the deepwater USAN field will reach first oil in 2012 by current estimates. “demonstrates Total’s commitment and its confidence in the development of Nigeria’s oil and gas industry. It also confirms the Group’s desire to pursue a strategy of growth and diversification in high potential exploration regions,” he said.
According to him, the development of three deepwater projects, presently at different stages of development in Nigeria’s offshore, could catapult Total, which is currently the fourth largest oil and gas producer in the country, to second in the next five years.
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He also disclosed that the company’s 400MW power generation project in the Niger Delta has reached advanced stage. “We have engaged the government on a project on 400MW power generation in the Niger Delta. We have done all the technical work, and now we are finalising with the authorities, in terms of handling the legal framework in order to be able do the final investment decision,” he said.
He pointed out that the peaceful relationship with its communities follows Total’s positive engagement with them. “Apart from physical products like 24 hours power and schools, we are also going into engagement with them to define the projects that they want executed with our assistance. We are going into Enterprise development and other things that are sustainable so that they can progressively take over the development of their area by themselves,” he said.
Maurice observed that the security in the Niger Delta had been a major challenge for the past two years, adding, however, that since the government started promoting the amnesty programme in 2009, the company has recorded tremendous improvements in its operations.
“It does not mean that everything is perfect, but we are working at peace with our community,” he noted.
He noted that Total Upstream Companies would be 50 years old in Nigeria next year, thus a mature corporate citizen, adding that the conference was part of the company’s effort to mobilise the willing participation of diverse, creative Nigerians to improve its CSR policy.
He said, “In the areas where our operations directly impact on the people, we have deployed a Community Affairs entity to take care of ameliorating these impacts on a day to day basis, and sustainable development entities to take care of long-term issues.
“In areas where our operations are more peripheral in relation to the day-to-day life of our publics, we deploy Corporate Social Responsibility entities to support and accompany the stakeholders.”
According to him, “We have re-engineered our processes for the innermost circle through Memoranda of Understanding that are executed by the communities themselves with our help. The expenditure within the middle circle dedicated to the Niger Delta region is outsourced to the Niger Delta Development Commission (NDDC) by statute.
“But we find that the use of resources deployed to the outermost circle are still being conceptualized, planned and implemented by our internal processes, and we believe that we should open up this part of our activities to external ideas,” he added.
Other speakers at the event include Nobel Laureate, Prof. Wole Soyinka, and the immediate past Senior Special Assistant to the President on Millennium Development Goals (MDGs), Mrs. Amina Az-Zubair.
Maurice noted that worldwide, Total is the fifth integrated oil and gas company that is reputed for excellence in oil and gas exploration and production, but which is increasingly adding renewable energy to its list of competences.
“This signals a movement from an oil and gas producer to an Energy company. Just as we have changed our company names within this period, we have also changed and adapted our strategies on stakeholder engagements to the challenges of the times,” Maurice said.
He added that, “In Nigeria’s Upstream Oil and Gas sector, Total is one of the fourth largest oil and gas producers and one of the major players in the country’s Deepwater Developments with three major products at different stages of development in the deep offshore, which when completed could catapult Total to second or third position in Nigeria in the next five year.”
He pointed out that in the downstream sector, the company has over 500 service stations as well as plants and depots spread evenly throughout Nigeria.
According to him, “Total Nigeria Plc is the downstream business of Total Group in Nigeria, and has consistently set high standards in the oil marketing sector as well as in the Nigerian Stock Exchange where it has led the sector for many years.
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
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