TotalEnergies’ CEO, Patrick Pouyanne, has explained why the company is channelling $6 billion into energy projects in Angola instead of Nigeria. Speaking at the Africa CEO Forum in Kigali, Rwanda, Pouyanne pointed to Nigeria’s inconsistent policymaking as a key factor in the decision. Angola, by contrast, offers a more stable policy environment.
Pouyanne highlighted that the Niger Delta, despite being the most productive region in West Africa, suffers from a volatile policy environment that deters investment. He noted that TotalEnergies has not conducted oil exploration in the Niger Delta for 12 years due to these policy issues.
“Nigeria loves to open topics without closing them. You love to debate. A new legislature in Nigeria always deals with a new petroleum law. When you have such permanent debates, it’s difficult for investors looking for long-term structure to know what direction to go,” Pouyanne said.
He emphasized the importance of having a clear and stable framework for investors, which Angola provides. This stability led TotalEnergies to announce a $6 billion project in Angola, knowing that the country’s policies are consistent and reliable.
Insecurity and Talent Shortages Hinder Investment
Pouyanne also cited insecurity and a lack of human capital as major challenges to investing in Nigeria. Investors need assurance that their investments are secure and not exposed to violence. Also, finding skilled talent in Nigeria and other regions can be difficult, further complicating investment.
“For a CEO like me, the security of my people is of utmost importance. We also find it challenging to find talent in some countries like Nigeria and Rwanda. Education is often a barrier, and we contribute by training people,” Pouyanne stated.
Background Context
In December 2023, TotalEnergies announced plans to invest $6 billion in Africa’s largest oil producer, focusing on deep-water projects and gas production. This move comes as international oil companies shift from onshore to offshore operations in Nigeria.
During a meeting in Abuja, Pouyanne assured President Bola Tinubu that TotalEnergies supports the administration’s efforts to resolve insecurity issues. Nigeria contributes 8-10% of TotalEnergies’ global output and holds more than 18% of its overall investments.
However, the company has struggled to maintain its interest in Nigerian offshore assets due to security concerns and vandalism. In February, TotalEnergies announced plans to sell its minority stake in a major Nigerian oil joint venture, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to align with its health, security, and environmental policies.
