As countries continue to commit to the global energy transition, TotalEnergies has said its focus will be on both oil and gas, given that oil would still be relevant in the next five to ten years, despite the efforts at decarbonisation.
The international oil company (IOC), however, maintained that despite its resolve to remain focused on oil, it was fully committed to supporting the development of Nigeria’s gas resources, the global energy transition and in achieving carbon neutrality in its operations by 2050.
Managing Director, TotalEnergies Nigeria, Mr Mike Sangster, made this known while speaking as a panelist at the 10th Practical Nigerian Content Conference, organised by the Nigerian Content Development and Monitoring Board (NCDMB) in Yenogoa, Bayelsa.
The panel session, which had other IOCs) Shell Companies in Nigeria, Chevron Nigeria Ltd., and ENI Companies in Nigeria as panelists, explored the topic, ‘Growth Levers and Investment Opportunities Arising from Nigeria’s Petroleum Industry Act (PIA).’
Sangster, who was represented by Deputy Managing Director, Deep water Assets, Mr Victor Bandele, explained that although the march to renewable energies was irreversible, the fact remains that fossil fuels would remain the main source of energy globally for some time to come.
He said: “Our company’s energy mix will change significantly in the coming years. Currently, we produce about 55 per cent of oil, our energy mix is 40 per cent gas, and five per cent electricity.
“By 2030 we expect that the proportion of oil in our energy mix should have gone down to 35 per cent, gas will move up from 40 per cent to 50 per cent and renewable energy would have gone up to 40 per cent.
“By 2050 40 per cent of our renewable energy in our mix gas will maintain 40 per cent and the oil will represent 20% of the total energy mix. This is the landscape of total energy worldwide.
“In Nigeria, in the next five to ten years the oil demand is still going to be there. Everybody is trying to increase gas and Total is going to do that too but we still need oil because oil is still going to be very relevant but we are also going to transit into gas and so, we are going to focus on both oil and gas in the next couple of years and the focus is going to be very critical.”
hile commending President Muhammadu Buhari for signing the Petroleum Industry Act (PIA) into law, he noted that the success of the federal government’s ‘Decade of Gas’ agenda was determinant on the country’s ability to unlock the domestic gas-to-power value chain and deepen domestic liquefied petroleum gas penetration and accelerate.
“We are a country that needs a lot of gas and with this PIA, there will be a greater demand for gas even domestically.
Nigeria has an enormous gas reserve and there is the need to optimise that abundant oil and gas resources so we are going to explore, engage in that. Sangster who further noted that TotalEnergies was working towards producing more energy