French oil giant TotalEnergies has announced plans to invest $750 million in a Liquefied Natural Gas project in Nigeria, set to begin in 2025.
The investment was revealed by the company’s Senior Vice President for Africa, Mike Sangster, during the France-Nigeria Business Forum in Paris on Friday.
Sangster explained that the project, known as Ima, will be a shallow water initiative designed to enhance gas supply to TotalEnergies’ LNG facility. He also highlighted that this investment aims to contribute to the revival of Nigeria’s hydrocarbon production.
“We have another dry gas project called Ima, which we hope to sanction next year for about $750 million,” Sangster said.
The Ima project follows TotalEnergies’ earlier announcement of the Ubeta onshore gas field, which is set to produce 300 million cubic feet per day of LNG. The Ubeta project, valued at $500 million, is a joint venture with the Nigerian National Petroleum Corporation Limited.
Sangster also called for a relaxation of local content regulations in Nigeria, particularly to encourage the return of international contractors specializing in deep-water projects. He noted that easing these regulations could stimulate competition and unlock investments currently stalled in the sector.
Despite these challenges, Sangster praised the Nigerian government’s efforts to implement reforms in recent years. He emphasized that the incentives introduced have motivated TotalEnergies to continue investing in Nigeria and work toward reversing the decline in the country’s oil and gas production.
“There’s still more to be done in terms of regulation, simplifying, and accelerating the process, but we have appreciated some of the changes that have been made over the past year,” he said. “These reforms have given us the incentive to renew our investments in Nigeria and help halt the decline in production while boosting output.”
Since taking office in May 2023, President Bola Tinubu has introduced significant measures to address persistent challenges in Nigeria’s oil and gas sector. Among the steps taken are the signing of two executive orders aimed at improving operational efficiency and streamlining industry processes.
The Tinubu administration’s efforts are part of a broader strategy to revitalize the sector and position Nigeria as a competitive player in the global energy market.
One of the key goals is to attract up to $10 billion in new investments for deep-water gas exploration. This target is supported by a new policy framework that includes tax incentives and regulatory reforms designed to create a more investor-friendly environment, foster sustainable growth, and encourage technological advancements in the industry.
These efforts are expected to not only drive increased investment but also enhance Nigeria’s hydrocarbon production capacity in the coming years.
