Oil & Energy
Total Energies To Deliver Ikike Oil Project in 2022
The Total Energies EP Nigeria Limited has promised to deliver Ikike project on stream next year having delivered Egina project in December 2018.
Ikike oil field is located in a water depth of 20m in the oil mining lease (OML)99, approximately 20km offshore Nigeria.
The Managing Director of Total Energies EP Nigeria Limited, Mike Sangster, disclosed this at the pre opening ceremony of the ongoing 39th Annual International Conference and Exhibition in Lagos.
He disclosed that the company has operated in Nigeria for over 60 years and is the only International Oil Companies (IOC ) with presence across the entire value chains of the oil and gas industry at the moment.
Sangster who was represented by the Deputy Managing Director DeepWater, Mr Victor Bandele, explained that Total Energies started downstream activities in Lagos in June 1956 and began upstream operations in Obagi, Rivers State in May 1962, and now boasts of 577 service stations across Nigeria.
The Managing Director said the company’s total production is now about 55% oil, 40% gas and 15% electricity, expressing hope that in 2030, its production will be 50% gas, 35% oil and 15% power while in 2050, the mix is targeted to be renewable power; 40% gas (primarily carbon-free) and 20% liquid products.
He said the company’s target was to get to net zero on its operations worldwide by 2050, assuring that the company is committed to this target and is working with all its stakeholders.
“We believe we can deliver clean more affordable and more available energy to all many people as possible”, he said.
Sangster noted that Total Energies EP Nigeria Limited is currently the second largest producer of crude oil in Nigeria and also the busiest IOC in the country in the last 10 years.
The Total Managing Director also highlighted some of the benefits Nigeria is expected to enjoy from the Petroleum Industry Act (PIA).
He said the PIA is expected to eliminate regulatory/legal hurdles, attract critical investment, unlock financial resources, accelerate local content development and enhance employment among other opportunities.
According to him, PIA is the most significant legislative act that will impact the oil and gas landscape due to its ramifications on industry and country at large.
He warned that too frequent amendments would foster policy instability and instigate apprehension among investors.
He also expressed fear that many litigations against oil companies could threaten operational stability and induce long term uncertainties.
“To unlock and maximize the potentials of PIA, some points like political will for a consistent implementation of provision of the law need to be addressed”, he said.
Sangster also suggested continuous engagement and consultations with stakeholders for the unflinching support necessary for the success of the law.
By: Ike Wigodo