We Are Ready To Support Upstream Investments: Federal Government

 

The Federal Government has assured Oil Companies operating in the country  of her  readiness to support upstream investments through favourable policies and a stable operating environment.

This was as she  reaffirmed its commitment to fostering increased crude oil production through supportive policies, incentives, and strategic partnerships with international oil companies (IOCs). 

Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), who  gave the  assurance during a courtesy visit  on him by Mr. Nicolas Terraz, President, Exploration & Production at TotalEnergies , commended  the company for being a reliable and strategic partner to Nigeria, praising the company’s commitment to both existing and new developments. 

The Minister highlighted the need for continuous investment in the sector, stressing that Nigeria cannot meet its production targets without new investments or increased drilling activities. 

A statement by Nneamaka Okafor, SA Media and Communication to the Minister reads: “Our support and incentives as a Government have continued to inspire a production trajectory that aligns with our goal of ramping up production.

 “We are committed to implementing the deep water incentives to ensure this momentum is sustained.

“We are absolutely in support of divestments where necessary, but it is critical that there is demonstrated capacity to manage the assets being transferred.

“Our expectation is that companies invest in every asset they hold, but where that is not possible, farm-outs and partnerships are welcome. We are always open to discussions aimed at building consensus and achieving shared objectives.”

Speaking earlier at the meeting, Mr. Terraz  had provided updates on TotalEnergies’ ongoing and future operations in Nigeria. 

He confirmed the successful drilling of additional wells and  highlighted their continued stability of production, while noting the company’s divestment of its interest in the Bonga North project to Shell.

He said: “TotalEnergies is fully committed to supporting Nigeria’s energy goals. Our continued investment in projects like Ubeta demonstrates our long-term vision, even as we responsibly rebalance our portfolio with the divestment in Bonga North."

The meeting reaffirmed the strong collaboration between the Nigerian Government and IOCs in unlocking the full potential of the country’s oil resources while meeting both domestic energy needs and international obligations.