TotalEnergies’ CEO, Patrick Pouyanne, has clarified the reasons behind the company’s substantial $6 billion investment in energy projects in Angola rather than Nigeria.
Speaking at the Africa CEO panel in Kigali, Rwanda, Pouyanne attributed the decision to shifting from Nigeria to Angola to the inconsistent policymaking in Nigeria, which led to a more stable policy framework in Angola. Despite the Niger Delta’s high productivity, the uncertain policy environment in Nigeria has deterred investments, resulting in TotalEnergies not conducting oil exploration in the region for 12 years.
Pouyanne criticized Nigeria’s tendency to engage in endless debates without reaching resolutions, particularly regarding petroleum laws, making it challenging for long-term investors to make informed decisions. In contrast, he praised Angola for its stable policy framework, leading TotalEnergies to announce a significant investment in the country. Furthermore, Pouyanne highlighted security issues and the lack of skilled human capital as significant obstacles to investment in Nigeria. He emphasized the importance of ensuring a secure environment for investments and addressed the company’s efforts to train individuals to meet the oil and gas sector’s talent requirements.
TotalEnergies had earlier disclosed plans to invest up to $6 billion in Nigeria, focusing on deep-water projects and gas production amid a trend of international oil companies favoring offshore operations. Pouyanne assured President Bola Tinubu of the company’s support for the government’s efforts to address industry security challenges.
Although Nigeria plays a crucial role in TotalEnergies’ global operations, the company has faced challenges in retaining interest in offshore assets due to security threats and vandalism. In line with its health, security, and environmental policies, TotalEnergies announced its intention to divest its minority stake in the Shell Petroleum Development Company of Nigeria Limited joint venture.
In summary, TotalEnergies’ shift from Nigeria to Angola for energy investments underscores the importance of stable policy frameworks and security measures in fostering a conducive environment for long-term investments.
