Total Exploration and Production Nigeria Limited has raised concerns over the continuous depletion of Nigeria’s oil and gas reserves.

While delivering a keynote address at a recent e-Technical Session of the Nigerian Association of Petroleum Explorationists (NAPE), the Managing Director of Total E&P, Mike Sangster, said the situation poses a threat to the economic sustainability of Nigeria.

The Association on its part had warned in October 2019 that the steady depletion of the country’s reserves would drive it into “risks of long-term disruption to oil and gas supplies, power generation, collapse of industries and significant loss of revenue.”

He related the depleting oil reserves to uncertain fiscal and regulatory regimes, unfavourable policies, low oil prices and others.

The MD revealed that its downstream company, Total Nigeria Plc, donated 50 million naira as part of a combined contribution from the Major Marketers Association of Nigeria (MOMAN) provided the Lagos State Government with fuel for logistical support during the pandemic.

He noted the company has invested about $10 billion in the country over the years as Nigeria is important to the Total Group. About 10% of the Group’s equity in production is from its activities in Nigeria.

Excerpts from the submission of the MD:

“As a body of explorationists, you, like every keen observer of the industry, should be concerned that as we deplete our oil and gas reserves as a nation, there are no proportionate exploration activities to ensure long term sustainability and replenishment of the resource that accounts for more than 90 per cent of the country’s foreign exchange earnings.”

“Combination of factors which include uncertain fiscal and regulatory regimes, policies that make new investments unattractive and uncompetitive, low oil prices, etc, are easily to blame for this development.”

“As a body of explorationists, you, like every keen observer of the industry, should be concerned that as we deplete our oil and gas reserves as a nation, there are no proportionate exploration activities to ensure long term sustainability and replenishment of the resource that accounts for more than 90 per cent of the country’s foreign exchange earnings.”

“Combination of factors which include uncertain fiscal and regulatory regimes, policies that make new investments unattractive and uncompetitive, low oil prices, etc, are easily to blame for this development.”

“We are all aware of the raging COVID-19 pandemic which has held the world hostage for several months now. The adverse effect on lives and businesses, especially the oil and gas industry cannot be overemphasised.”

“Total rose to the clarion call of the federal government along with its partners, led by the Nigerian National Petroleum Corporation (NNPC), by contributing to a donation of N21 billion in support of the federal government’s COVID-19 efforts.”

“Total’s contribution was $3.2million (N1.2billion). The company also supported the Lagos State Government with critical supplies and medical equipment. In Rivers State, we reached out to our stakeholders by providing medical supplies and support for our host communities and the state government.”