The CEO of TotalEnergies, Patrick Pouyanne, has revealed that the company is investing $6 billion in energy projects in Angola instead of Nigeria, citing policy inconsistency in Nigeria as the primary reason for this decision.
Speaking at the Africa CEO Forum in Kigali, Rwanda, Pouyanne emphasized that Angola’s stable policy framework is more conducive to long-term investments.
Pouyanne pointed out that the Niger Delta, despite being the most productive region in West Africa, has not seen any oil exploration by TotalEnergies for 12 years due to Nigeria’s erratic policy environment. “Nigeria loves to open topics without closing them.
There is always a new legislature in Nigeria about a new petroleum law. When you have such permanent debates, it’s difficult for investors looking for long-term structure to know what direction to go,”Pouyanne stated.
He also highlighted the importance of a stable investment framework, citing Angola as a model. “We have countries that have perfectly integrated policies like Angola. So, we go to Angola and announced a very large $6 billion projects in the beginning of the week because their framework is stable. So we know where we go,” he added.
Security concerns and the difficulty of finding skilled talent were also mentioned as challenges in Nigeria.
Pouyanne stressed the importance of security for the safety of personnel and the need for investment in human capital through training.
Despite these challenges, TotalEnergies plans to invest up to $6 billion in Nigeria, focusing on deep-water projects and gas production.
Pouyanne expressed support for President Bola Tinubu’s policies aimed at resolving insecurity issues in the industry.
However, the company is also looking to divest its minority stake in the Shell Petroleum Development Company of Nigeria Limited due to health, security, and environmental concerns.
