• Saturday, June 22, 2024
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Nigeria must compete for capital importation- TotalEnergies

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The chairman of TotalEnergies in Nigeria, Mike Sangster has called on the government to position the local operating environment for keen competition for global investments in petroleum development, adding that Nigeria must urgently address the crippling security and operational challenges bedevilling the industry.

Sangster who led panel discussions on Defining the Requisite Roadmap for gas production at the ongoing Practical Nigerian Content Forum in Uyo, Akwa Ibom State, pointed out that palpable challenges in the Nigerian business environment stand solidly against the government’s call for greater investments in gas development.

He noted that whereas the country holds a huge and attractive gas resource base, operating conditions in the policy and security environment pose serious challenges to investment decisions.

Sangster particularly noted that a safe and secure operating environment is necessary for commercial investments to thrive.

He explained that insecurity and policy instability in an environment ultimately translate to high operating cost, adding that Nigeria needs to install measures that would make the cost of operation in the local industry environment attractive to global investible capital.

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Sangster whose TotalEnergies earned prolonged eulogies at the conference for its stream of investments in the country noted that the new Petroleum Industry Act (PIA) 2021 has brought improvement in the fiscal environment.

He however pointed out the need for incentives for investments in deepwater gas development.

The TotalEnergies Nigeria boss also listed the urgent need for stable policy environment, sanctity of contracts and guarantees for return on investments as critical enablers for investment decisions.

He made it clear that investment decisions are only possible in environments that hold up visible potentials for profitability of operations in a safe and fiscally stable climate.

Mr. Sangster’s recommendations formed the position of the Oil Producers Trade Section of the Organized Private Sector (OPS) whose members resourced the panel discussions.

Other members of the panel include the Group Executive Director in charge of Upstream operations of the Nigeria National Petroleum Company (NNPC) Limited, Adokiye Tombomieye, who was represented by Engr Bala Wunti; Country Chair of Shell Companies in Nigeria, Osagie Okunbor; and Chairman of ExxonMobil companies in Nigeria, Richard Laing; and Chairman and Managing Director of Chevron Nigeria/Mid-Africa Business Unit, Richard Kennedy.