Total Restates Commitment to Nigeria’s Gas Master Plan


Peter Uzoho
The Managing Director, Total E&P Nigeria/ Country Chair, Total Companies in Nigeria, Mr. Mike Sangster, has stated that the oil major is deeply committed to the Nigerian Gas Master Plan, which centres around reducing gas flaring and monetisation.

Sangster stated this in Lagos while delivering the sponsor’s remark at a management session of the 2019 conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) held recently.

Speaking on the topic, ‘Gas Monetisation in Nigeria- Need for Concise Strategy”, he said, ”Our partnership with the NLNG is well known. We are an NLNG partner with 15 per cent stake in the company, which has a liquefaction capacity (Trains 1- 6): 22 MT/Y of LNG. But the planned Train 7 will increase NLNG capacity from 22 to 30 MTPA.

“Total is committed to the Nigerian Gas Master Plan – reducing flaring and monetising gas. We are also committed to the supply of additional gas to NLNG train 7 for increase of NLNG capacity. We have signed three Gas Supply Aggregation Agreements (GSAA) and we take our domestic gas supply obligations under these agreements quite seriously.

”However, we are aware that challenges remain in the areas of infrastructure; legal and regulatory framework; commercial framework (pricing policy) via the National
Domestic Gas Supply & Pricing Regulations of 2008 vis-à-vis the new National Gas Policy approved by the Federal Executive Council (FEC) in 2017.”

He added that there was also the question of funding mechanisms for the sector because, “as we all know, investments in PSC oil projects are recovered from oil but no mechanism is currently agreed for cost recovery or profit sharing for investments in gas projects.”

Sangster further said the ambition of the company was to become the responsible energy major, pointing out that ”this is the meaning of our motto: ‘Committed to Better Energy’.
“This ambition challenges us to provide more reliable, affordable and clean energy to the world’s growing population”.

According to him, ”Nigeria is Africa’s top oil producer and when industry experts assemble in Nigeria to discuss any aspect of the oil and gas business, it’s definitely a very good idea to join that conversation. That is evident in the quality of industry leaders and experts assembled in this hall this morning.

”The Total Group has been present in Africa for more than 80 years and has been involved in exploration activities in Nigeria for 57 years. We have a broad and diversified portfolio in Nigeria, with activities spanning onshore, conventional offshore, deep water and LNG. Total has developed a strong partnership with the Nigerian National Petroleum Corporation (NNPC) and other partners.

”Total’s upstream branch plays a significant economic and social role in Nigeria, operating nearly 15 per cent of the country’s production. Nigeria, as one of our core areas of activities, is also crucial to the Total Group, accounting for 12 per cent of its equity production. In the last five years, Total has invested approximately $10 billion in the country.

”Total is proud to be associated with Nigerian Association of Petroleum Explorationists (NAPE), which is the largest professional association of petroleum geologists and related disciplines in Nigeria and indeed Africa. NAPE is a very important part of Total.

“Our staff have occupied very senior positions of responsibility in NAPE and continue to do so because we identify with the ideals and objectives of this important and strategic professional association.