The managing director of Total Nigeria, Mr Mike Sangster, has complained that Nigeria has only benefitted from less than five per cent of all investments in oil and gas in Africa between 2015 and 2019 despite having the largest reserves in the continent.
He said there is reason to be concerned over the continuous drop in investment in the Nigerian oil and gas industry despite the country’s huge hydrocarbon deposits.
While speaking at the recently held 38th edition of the international conference and exhibition of the Nigeria Association of Petroleum Explorationists (NAPE), under the theme: “Future of Oil and Gas Industry in Low Oil Price Environment: Survival Strategies,” Sangster who was represented by Total Nigeria deputy managing director, deepwater, Mr Victor Bandele, pointed out that the five per cent represented only $3billion investment in the country.
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He said the decline in investment in Nigeria’s oil sector is owed to issues around uncompetitive fiscal terms, increasing cost of operations, unsettled deep water disputes, and upcoming deep-water lease expiry.
“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 contextualize 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.
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“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,” the Total Nigeria boss said.
He assured that his company would support the efforts being made by the Nigerian authorities to define a long- term framework for the oil and gas industry that provides clarity and certainty as well as attractive terms which translate to a win-win solution for the country and investors.
According to him, that would further attract more capital investment in an ever more competitive world, adding that a progressive, win-win PIB would no doubt be the catalyst needed for a new wave of hydrocarbon exploration and development investment in Nigeria.
By Chibisi Ohakah, Abuja
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