Nigerian Minister of State for Petroleum Oil, Senator Heineken Lokpobiri, has reiterated the country’s unalloyed efforts to get inactive and untapped assets to be operational, noting that this remains critical to the drive to ramp up oil production through the Federal Government’s firm commitment and strategic collaborative support with the Operators.
The minister emphasized this commitment during his visit to TotalEnergies’ Headquarters in Paris and their Research Institute in Pau, France, asserting that cultivating a partnership-oriented habit through continuous engagement with relevant stakeholders and policymakers will in no small measure positively impact the nation’s crude oil production.
“The visit, which was at the instance of TotalEnergies, forms part of our continuous engagement with international stakeholders and their engagement with policymakers, particularly as the company prepares to unlock several assets which some secured during the last bid round, and others held previously.
Senator Lokpobiri expressed his optimism that the present administration is determined to synergize with International Oil Companies and indigenous operators through various regulatory bodies to foresee the unlocking of the nation’s dormant fields, which invariably will ramp up production, and he thanked TotalEnergies for being part of this laudable aspiration. He described Total Energies Research Center as an enabler to ramping up production.
“President Bola Ahmed Tinubu has been unequivocal in his mandate for all operators to unlock dormant fields, and as policymakers and supervisors of regulatory agencies, we are pursuing this mission with the full dedication required to actualize it. I am particularly pleased that TotalEnergies is taking decisive steps in this direction,” Lokpobiri stated.
“At their Research Center, where we reviewed their Smart Room and support center, which can complement our efforts to ramp up production, I reiterated our readiness to provide regulatory support as they unlock these assets. The time to ramp up production is now, and the benefits are mutual,” He added.
TotalEnergies, in a recent announcement, stated that its subsidiary TotalEnergies EP Nigeria (TEPNG) has signed an agreement with Shell Nigeria Exploration and Production Company Ltd (SNEPCo) for the sale of its non-operated 12.5% interest in the OML118 Production Sharing Contract (PSC) for an amount of $ 510 million.
OML118 PSC is operated by SNEPCo (55%), in partnership with Esso Exploration and Production Nigeria (20%), TotalEnergies EP Nigeria (12.5%), and Nigerian Agip Exploration (12.5%). Located approximately 120 km south of the Niger Delta in Nigeria, it contains the Bonga field, which commenced production in 2005, as well as the Bonga North field, the development of which commenced in 2024. Production from the OML 118 PSC, which is mainly oil, represents approximately 11,000 boe/d in the Company’s share in 2024.
“TotalEnergies continues to actively high-grade its Upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven,” said Nicolas Terraz, President Exploration & Production at TotalEnergies. “In Nigeria, the Company is focusing on its operated gas and offshore oil assets and is currently progressing the development of the Ubeta project, designed to sustain gas supply to Nigeria LNG.”
Completion of the transaction will be subject to the conditions, including regulatory approvals.
