June 22, 2024

NIGERIA: TotalEnergies overlooks divestment rumors, invites contractors for seismic services 

 

Olubunmi Martins

The French supermajor, TotalEnergies, has issued a notice to contractors asking for bids for the provision of seismic services in support of the development of its upstream assets in Nigeria.

In a public document sighted by EnergyDay, the company said it is inviting interested and reputable indigenous suppliers with suitable personnel and relevant experience to tender for the provision of seismic acquisition supervision services.

The company disclosed that contractors have until June 29, 2022, to give an expression of interest.

The Seismic Services “provides critical information on fracture density and for accurate drilling”, adding that Seismic Survey will help to limit the negative impact of oil and gas drilling on the environment by providing guidance to protect damage to the environment in the course of drilling.

TotalEnergies holds interests in 33 oil mining leases (OML’s) in Nigeria but is directly responsible for the operation of only five, which includes OML 58, comprising the onshore Obagi field, Ibewa gas field and the strategic Obite gas processing plant.

The French Major is equally in charge as the operator of the Offshore OML 99, which includes the Amenam-Kpono field and the Ikike field, now in development.

On the decline side, OML 100 is expected, according to expert opinion, to decline in production by 2025, after it has produced over 100 million barrels since its inception in 1996.

This field could still produce some 10 million barrels and a rich volume of gas, if appropriate technology were available for deployment, said our Analyst, Engr. Adebayo. The peak production of the field was 124,000bpd.

EnergyDay gathered from primary sources that TotalEnergy is also the operator of the offshore OML’s 102 and the celebrated OML 130.

The company has further interests to varying degrees in other assets operated by its partners, which include the Ekanga field (40%), which is part of OML 102; OML 118 (12.5%), which is located in deep offshore territory and includes the Bonga field; OML 135 (12.5%); OML 138 (20%), which includes the Usan field. OML 139 (18%), OML 154 (18%), which includes the Owowo field.

More significantly, TotalEnergies holds 10% equity in about 16 onshore assets which are altogether operated under the aegis of Shell Petroleum.

In recent weeks, there has been speculation that the French major has completed arrangements to completely divest its onshore assets.

Attempts by EnergyDay to ascertain if the company’s divestment from onshore assets is conclusive received a blank response.

Bunmi Popoola-Mordi, TotalEnergies Country Services, Executive General Manager, in a recent chat with EnergyDay debunked the speculations that the company is completely divesting its stakes from Nigeria’s onshore offshores. She however refused to provide more details on the alleged plan to  sell off its 10% stake in SPDC, a joint venture consisting of 13 oilfields and jointly co-owned by ENI, Shell and the Nigerian National Petroleum Corporation (NNPC).

Mr. Nicolas Terraz, President, TotalEnergies Africa,  said,  ” TotalEnergies is the second largest operator in Nigeria, accounting for 20% of the country’s oil and gas production.”

“Nigeria is without doubt a major player and a proud partner of TotalEnergies in developing its oil and gas sector. And we have not stopped, ” Terraz said.

Terraz, a former country Chairman of the company in Nigeria, noted that the company has “become the industry benchmark for Nigerian content as demonstrated by the flagship Egina project where we set new standards, sharing our technological expertise with the oil & gas industry.”

He urged all to embrace “qualities that have served us so well over the last six decades, and we will surely continue to thrive, laying a new foundation for the generations to come.”

The Executive Secretary, Nigerian Content Development and Monitoring Board, NCDMB, Mr. Simbi Kesiye Wabote, in a recent statement about the company said, “TotalEnergies has invested so much in Nigeria in the last 60 years. At the last count, we are looking at almost $30 billion worth of investment in Nigeria within the space of eight years.

“There is no basis for comparison with other IOCs such as Shell, Chevron, and ExxonMobil. I will use TotalEnergies to continue to challenge them. The company is also one of the investors in NLNG Train 7, which is about the most important investment in the whole of the country,” the NCDMB boss said.

EnergyDay’s checks revealed that the super major is looking beyond the current clamour for fossil fuel exit. It was revealed that the company’s OML 58, production will continue until the field reaches its economic limit in 2052.

The field currently accounts for approximately 4% of the country’s daily output, with the potential to produce an additional 500 million barrels of crude oil.