During a session titled “Future of Oil and Gas Industry in Low Oil Price Environment: Survival Strategies” at the recently held 38^th edition of the international conference and exhibition of the Nigeria Association of Petroleum Explorationists (NAPE), the Managing Director of Total Nigeria, Mike Sangster, expressed his opinions on why Nigeria only got 5% of the total investments in the oil and gas sector made in Africa from 2015-2019.

The MD was represented by the Deputy Managing Director, Deepwater, Total Nigeria, Victor Bandele.

He expressed worry on the low figure recorded in investments as Nigeria has huge hydrocarbon deposits. He said the decline is due to issues in the country’s petroleum sector including uncompetitive fiscal terms, increasing cost of operations, unsettled deep-water disputes, and upcoming deep-water lease expiry.

He assured that Total Nigeria will continue to support the efforts being made by the relevant authorities to find attractive terms that provide a win-win solution for Nigeria and investors; referring to the PIB. He said the Bill will attract more capital investment.

Excerpts from the Deputy Managing Director’s speech on behalf of the M.D:

“A win-win PIB: Total is keen to continue to invest in Nigeria and willing to contribute constructively to the ongoing debate on the Petroleum Industry Bill. Permit me to contextualise Nigeria’s situation: Nigeria has only benefitted from less than five per cent of all investments in oil and gas in Africa from 2015 to 2019 despite having the largest reserves.”

“That is to say that, the $3 billion invested in Nigerian projects which took Final Investment Decision (FID) between 2015 and 2019 represents only five per cent of all oil and gas funds invested in Africa.”

“No major investment decision was taken in Deepwater Nigeria from 2015 – 2019, despite a number of available potentially viable projects.”

“Uncompetitive fiscal terms, increasing cost, unsettled deep water disputes, and upcoming deep-water lease expiry all contribute to increase the risk for investors and prevent new investments.”

“Consequently, in order to respond to the current global crisis, we need to manage through the uncertainties and seize the identified opportunities. The overarching message here is: Let’s develop Nigeria’s abundant resources now, before it is too late.”

“Total is part of the solution to climate change with a commitment to delivering reliable, affordable and clean energy to the population. We have made important investments locally in this area and implemented several initiatives that are already impacting the Nigerian energy landscape positively.”