As global interest shifts to energy transition major international oil companies are seeking to optimise the business model in what is the last growth segment in fossil fuels.
Major focus is tilting towards expanding investment in the gas sub sector, which is seen as major driver in the energy transition strategy.
TotalEnergies is presently progressing with its near and long term energy transition initiative which will see significant reductions in Greenhouse Gas Emission, GHG and Carbon Footprint.
As part of its global efforts in the transition programme, TotalEnergies is ramping up the Solarization of energy sources in across its facilities and host communities in Nigeria, and has achieved a modest generation of 0.12MW in 2021 to 0.55MWp in 2023 and with a target of 9.4MWp by the end of 2025.
The oil major is also close to eliminating routine flaring at its installations in Nigeria by the end of 2023.
The firm is set to take Final Investment Decision, FID, on its UBETA OML 58 field by 2024, a prolific asset that will upscale gas Supply to the Nigerian Liquified Natural Gas, NLNG plant and further improve domestic gas supply.
The project adequately aligns with the federal government’s Gas Commercialisation and Domestic Utilisation initiative.
Speaking at the 41st National Association of Petroleum Explorationists, NAPE, conference in Lagos Managing Director and Chief Executive of TotalEnergies E&P Nigeria Ltd, Mr. Matthieu Bouyer, said the Company is developing business model that addresses transition to sustainable energy sources and investing significantly in renewable energy sources to accelerate low-carbon solutions.
Bouyer said the theme of the conference, “Repositioning Oil and Gas Industry for Future Energy Dynamics”. is apt in addressing the challenges of the sector, and that TotalEnergies is proud to be associated with NAPE, a foremost professional geoscience body which has provided the platform over the years for key stakeholders in the Oil and Gas sector to exchange ideas and provide valuable inputs for the industry to constantly adapt to global changes in the energy business.
“For more than a century, oil and gas have powered the socioeconomic lives all around the globe. However, it has been realised that the unintended consequences of uncontrolled and unsustainable generation, processing and use of fossil fuels are far greater than previously thought. Top on the list of these undesirable consequences is Global Warming with all its manifestations.
“Consequently, society has been responding by discouraging the generation and use of energy sources with high greenhouse gas (GHG) emissions and high carbon footprints and promoting the use of cleaner, and renewable energies sources,” he stated.
To continue to be relevant, or even survive in the foreseeable future, Bouyer, said policy makers, regulators and other stakeholders in the Nigerian oil and gas industry must respond by evolving a future business model of “multi-energies” and placing more responsibility on people and the environment by progressively reducing the carbon footprints of petroleum exploration operations whilst transiting to cleaner and renewable energy sources.
On its part the managing director, said TotalEnergies, is strongly adopting business models with greater focus on people’s well-being and evolve solutions that ensure and enhance the health and safety of our population.
He assured that the company will continue to adopt projects that create value for the society and foster the development of economic opportunities for the local communities while also getting host communities more involved as stake holders in its projects.
Speaking on set target, he said, “We believe more progress will be made if we set concrete targets for the near and long term in the following key areas as a country and as stakeholders.”
The target include reduction in GHG Emission and Carbon Footprints which implies evolution of energy mix, (Percentage of Oil, Gas, Electricity, Biomass, Hydro, and hydrogen) by 2030/2050.
At a global scale, TotalEnergies aims to reduce its global GHG emissions from oil and gas facilities by 40 per cent in 2030.
Bouyer, said by 2030, the Company is targeting an energy mix of: Gas (50%); Petroleum products (30%); Electricity (15%); Biomass and hydrogen (5%).
According to him, “In this journey of energy transition, we recognise the strategic role of natural gas. Gas produces half the GHG emissions of coal for the generation of electricity. It emits less GHG than oil for the same quantity of energy and in its liquefied form (LNG), it offers similar ease of storage and transport. Gas is therefore the key energy of the transition as renewable energies today cannot meet the energy needs of the world’s populations.”
He said that for more than a century, oil and gas have powered the socioeconomic lives all around the globe. However, it has been realised that the unintended consequences of uncontrolled and unsustainable generation, processing and use of fossil fuels are far greater than previously thought. Top on the list of these undesirable consequences is global warming with all its manifestations. Consequently, society has been responding by discouraging the generation and use of energy sources with high greenhouse gas (GHG) emissions and high carbon footprints and promoting the use of cleaner, and renewable energies sources.
To continue to be relevant, or even survive in the foreseeable future, policy makers, regulators and other stakeholders in the Nigerian oil and gas industry must respond by evolving a future business model of “multi-energies” and placing more responsibility on people and the environment by progressively reducing the carbon footprints of petroleum exploration operations whilst transiting to cleaner and renewable energy sources.
To encourage sustainable development of the planet, 193 member-States of the United Nations adopted, in 2015, a program of sustainable development “Agenda 2030”. It is a roadmap of 17 sustainable development goals to be achieved by 2030 which we believe will largely drive the future of our business.
Maintaining Strong Presence In Nigeria
TotalEnergies, French global energy company, with more than half a century petroleum business operations in Nigeria, said it is not thinking of leaving the country anytime soon, amid the exit of some other IOCs from the country.
NATIONAL ECONOMY reports that the company has restated its commitment to sustain its Nigeria’s operations despite reports that some IOCs are exiting Nigeria.
“Our focus henceforth is on sustainability; and our sustainability programme is anchored on four pillars, which are: climate and sustainable energy, care for the environment, creating shared values for communities and people’s wellbeing,” Obi Imemba, executive director, Joint Venture Assets, TotalEnergies Nigeria Limited, said in Port Harcourt while leading a delegation of the company to the Niger Delta Development Commission (NDDC).
A joint venture deal between TotalEnergies and NDDC is on to undertake renewable energy investment in Nigeria’s oil region.
Imemba said TotalEnergies has made important investments in the renewable energy sector, and implemented several initiatives that were already impacting the Nigerian energy landscape positively.
“In recent years, our projects have been targeted at driving down our green-house gas (GHG) emissions; and pursuing a zero-flare principle on all our new projects,” Imemba said further.
He acknowledged the need to protect the environment from activities leading to further pollution; and urged private and government organisations to diversify their means of producing energy.
“We are providing renewable energy in TotalEnergies, and we are encouraging people (especially fossil fuel-based companies) to diversify their energy means, moving from the conventional fossil to renewable energy. We should bring hydrocarbons that have less carbon emissions,” the TotalEnergies executive director for joint venture assets, said.
TotalEnergies began oil business in Nigeria in 1962. More than 60 years down the line, the French energy major has produced more than 3.6 billion barrels of crude oil. In the last eight years alone, the Nigerian federal government informed that TotalEnergies EP Nigeria Limited, has invested almost $30 billion in Nigeria’s oil and gas sector.
A number of IOCs have been selling down properties, especially onshore fields and shallow water assets in Nigeria for around 10 years. They adduce high costs of producing onshore, in addition to security risks and pressure on emissions as driving their move away from Nigeria. In February 2022, Seplat announced an agreement for the acquisition of ExxonMobil’s entire share in its shallow water business — Mobil Producing Nigeria Unlimited. Last September (2023), Oando said it signed a deal to acquire 100 percent of Eni’s shares in Nigerian Agip Oil Company Limited (NAOC).
Most of the onshore fields and shallow waters assets have been taken up by local companies. Today, there are over 29 of them showing capacity to manage the assets locally.
However, most of the IOCs remain keen on going deep offshore and there is also a lot of local capacity now.
Deepening Strength In Offshore Nigeria
To support this claim, TotalEnergies, is currently undertaking the drilling of the first of three wells on a field offshore Nigeria with one of Noble Corporation’s drillships.
All three wells are expected to be tied into an existing floating production, storage, and offloading (FPSO) vessel.
TotalEnergies Upstream Nigeria Limited operates Oil Mining Lease OML, 130 with a 24 per cent interest, in partnership with CNOOC (45 per cent) Sapetro (15 per cent) Prime 130 (16 per cent) and the Nigerian National Petroleum Company Limited, as the concessionaire of the PSC. A maintenance shutdown is planned for the Akpo field during 1Q 2024, which was previously slated for 4Q 2023.
Before TotalEnergies secured a 20-year renewal of the OML 130 production license offshore Nigeria in May 2023, the French oil company embarked on a nine-well drilling campaign with the Noble Corporation’s Gerry de Souza drillship on February 22, 2023.
Located 150 kilometers off the Nigerian coast, the OML 130 block contains the Akpo and Egina fields, which came into production in 2009 and 2018, respectively.
Africa Oil, which has shareholdings in Prime, confirms that the drilling program on OML 130 continues, as the drilling rig is currently drilling the first of three wells on the Akpo West field. These wells will be tied into the FPSO Akpo. TotalEnergies expects the production start-up from this short-cycle project by the end of 2023.
Three wells, two water injectors, and one production well in this multi-well program, which is planned for up to nine wells on Egina and Akpo in the license area during 2023 and 2024 respectively, have been drilled and completed on Egina.
As a result, the infill drilling has offset production declines with the first quarterly increase in the average daily production since the second quarter of 2021.
Furthermore, the acquisition of 4D monitor seismic surveys is planned for Akpo, Egina, and Agbami from late 2023 through early 2024. This also includes a baseline 4D seismic survey of the Preowei field. According to Africa Oil, these surveys will support future drilling decisions across OML 127 and OML 130
