TotalEnergies has outlined five key propositions to revitalize Nigeria’s struggling oil and gas sector, which has faced underinvestment, declining production, and a loss of momentum over the past decade. Speaking at the 42nd annual conference of the Nigerian Association of Petroleum Explorationists (NAPE), Matthieu Bouyer, Chairman of TotalEnergies Companies in Nigeria, emphasized the need for reforms that could attract more investments and streamline operations in the industry. His proposals included reducing the cost of entry for investors, introducing market-reflective signature bonuses for oil blocks, and clarifying the Nigerian National Petroleum Company Limited’s (NNPC) “back-in-right” before asset handovers to new operators. These measures, according to Bouyer, would help make Nigeria’s oil sector more competitive and appealing to investors.
Bouyer also suggested that the Nigerian government should re-license expired and unexplored oil and gas blocks to new holders and activate the “Drill or Drop” clause in the Petroleum Industry Act (PIA) to encourage companies to develop their assets rather than leaving them idle. He further called for strategic partnerships in exploring expired deepwater blocks, and for the government to define clear terms for the NNPC’s “back-in-right,” which allows the government to regain a stake in oil fields after a new operator recoups their investment. This right, Bouyer proposed, should be cash-funded and kept to a minimum strategic holding.
In addition to these proposals, TotalEnergies urged the Nigerian government to enhance security of assets and infrastructure by involving host communities as part owners of energy infrastructure. This, Bouyer argued, would incentivize better cooperation on asset security. He also called for greater regional collaboration with neighboring West African countries to address maritime security threats. Despite concerns about its future in Nigeria, Bouyer reassured stakeholders that TotalEnergies remains committed to long-term operations in the country, emphasizing that the company is fully aligned with government efforts for the sustainable development of Nigeria’s oil and gas industry.
