TotalEnergies exec says will continue to invest in gas as energy transition is happening slower than expected

TotalEnergies exec says will continue to invest in gas as energy transition is happening slower than expected

TotalEnergies has reiterated its commitment to investing in gas, despite the slower-than-expected pace of the global energy transition. The company's executive, Patrick Pouyanné, stated that the shift towards renewable energy is taking longer than anticipated, necessitating a continued focus on gas as a transitional fuel [1].

Pouyanné's comments come as TotalEnergies continues to expand its operations in Nigeria, where the company recently signed a landmark Production Sharing Contract (PSC) with South Atlantic Petroleum (Sapetro). The deal, which covers two offshore blocks in the Niger Delta Basin, marks a significant step in boosting deepwater oil production and unlocking new investment in Nigeria's upstream sector [2].

Under the PSC, TotalEnergies will operate the blocks with an 80% stake, while Sapetro holds the remaining 20%. The contract includes a $10 million signature bonus, alongside performance-based production bonuses tied to milestones of 35 million and 100 million barrels. The agreement aligns with the Petroleum Industry Act (PIA) and provides clarity on cost recovery, profit oil sharing, royalties, host community obligations, gas utilisation, decommissioning, and environmental remediation [2].

Pouyanné's remarks highlight the company's strategy to maintain a balanced portfolio of energy sources, including both traditional and renewable energies. This approach is particularly relevant in Nigeria, where TotalEnergies operates 14 refineries worldwide and has 13,148 service stations, producing 2.4 million barrels of oil equivalent per day in 2024 [2].

The signing ceremony in Abuja was attended by key stakeholders, including NUPRC Chief Executive Gbenga Komolafe, who described the contract as a turning point for Nigeria’s upstream industry. The agreement is part of President Bola Tinubu’s 2024 executive orders on fiscal incentives, local content, and contract timelines, making Nigeria a more competitive investment destination [2].

The work program includes drilling one firm exploration well, marking a commitment to responsible and swift implementation of the agreed terms. This deal signifies a new chapter in TotalEnergies' partnership with Nigeria, focusing on unlocking the untapped geological potential of deepwater resources and expanding reserves [2].

References:
[1] https://www.ainvest.com/news/totalenergies-nigeria-deal-marks-shift-gas-development-2509/
[2] https://oilprice.com/Company-News/QatarEnergy-TotalEnergies-Win-Nzombo-Offshore-Licence-in-Congo.html