According to CEO Patrick Pouyanne, the French energy firm TotalEnergies plans to sell its onshore operations in Nigeria, citing operational challenges in the Niger Delta.
After decades of involvement in the Nigerian oil industry, another significant player in the industry, Shell, revealed last month that it was selling its onshore property, the Shell Petroleum Development Company (SPDC).
Of SPDC, TotalEnergies owns 10%.
Pouyanne stated, “We want to reshape the portfolio and divest our share of SPDC,” at TotalEnergies’ annual results presentation on Wednesday.
“It’s a huge challenge because extracting this oil in the Niger Delta is fundamentally against our [Health, Security, and Environmental] policies.”
Nonetheless, TotalEnergies plans to continue operating its gas business in Nigeria.
Pouyanne stated that the company’s intended growth of liquefied natural gas production in the upcoming years depends heavily on the gas industry.
Regulatory clearance is still required before the company’s onshore operations may be sold.
The oil company increased its net profit by 4% to $21.4 billion in 2023, setting a new record.
On the same day that it revealed its intention to divest its onshore operations, TotalEnergies indicated via email that it will begin production from the PML2 license in Nigeria’s Akpo West field.
The French energy company TotalEnergies intends to sell its onshore assets in Nigeria, citing operating issues in the Niger Delta, according to CEO Patrick Pouyanne.
Another major participant in the Nigerian oil business, Shell, said last month that it was selling its onshore property, the Shell Petroleum Development Company (SPDC), after decades of engagement in the sector.
TotalEnergies owns 10% of SPDC.
“We want to reshape the portfolio and divest our share of SPDC,” Pouyanne said during the TotalEnergies annual results presentation on Wednesday.
“Extracting this oil from the Niger Delta is fundamentally against our [Health, Security, and Environmental] policies, which makes it a huge challenge.”