The Nigerian National Petroleum Company (NNPC) Ltd has signed a Memorandum of Understanding (MoU) with TotalEnergies for the adoption and deployment of a methane detection technology known as Airborne Ultra-light Spectrometer for Environmental Application (AUSEA) in all its upstream operations.
This is as TotalEnergies said it would invest as much as $6 billion in Nigeria in the years ahead.
The energy firm said it will target deep-water projects and gas production at a time when international oil companies (IOCs) are shifting attention away from onshore to offshore operations in Nigeria.
With the agreement, which is a direct benefit from the Company's participation at the recently concluded United Nations Climate Change Conference (also known as COP28) in Dubai, UAE, NNPC Ltd. will be able to deploy the TotalEnergies AUSEA technology on its upstream operations sites to ascertain the level of methane emissions from them, with a view to working out emission curtailment measures to help in combating global warming and climate change.
The MoU was signed by NNPC Ltd.'s executive vice president, Upstream, Oritsemeyiwa Eyesan, and managing director and country chair, TotalEnergies EP Nigeria, Matthieu Bouyer, on behalf of their respective companies, under the watch of the group chief executive officer (GCEO) NNPC Ltd., Mele Kyari, and chairman and chief executive officer of TotalEnergies, Patrick Pouyanné.
Commenting on the pact, Mele Kyari, the group chief executive of NNPC Ltd, in a statement on Tuesday, described TotalEnergies as a reliable partner over the years with whom the Company was looking forward to exploring greater opportunities in the nation's energy sector.
On his part, Patrick Pouyanné, the Chairman of TotalEnergies, said the company was offering the technology to NNPC Ltd. in keeping with its commitment to promote responsible production of hydrocarbons.
He lauded NNPC Ltd. for its successful transition into a limited liability company, stressing that he could see and feel the energy that the reforms have brought about, not only in the company but also in the sector.
Putting the deal in proper perspective, the NNPC Ltd.'s executive vice president, Upstream, Oritsemeyiwa Eyesan, said the pilot phase of the TotalEnergies AUSEA deployment would be on NNPC Ltd.'s owned operations, adding that the deal would enable the company to deploy methane abatement measures.
Other benefits of the TotalEnergies AUSEA technology include identification of unaccounted emission sources, establishment of a basis for querying and improving current emission reporting processes, provision of data to review operational systems and implement corrective actions, and estimation of flare combustion efficiency.
Meanwhile, TotalEnergies CEO, Patrick Pouyanne, had told President Bola Tinubu during a meeting in Abuja on Monday that the French company is in support of the current administration's policies and push to resolve insecurity issues in the industry.
"Everything is here. We just need to conclude with the tweaks and changes necessary to unlock the outstanding potential in both oil and gas," Mr Pouyanne was quoted as saying in a statement issued by Ajuri Ngelale, special adviser to the president on media & publicity.
President Tinubu received the Group Chairman and CEO of Total Energies Worldwide, Patrick Pouyanne at the State House [PHOTO: X Presidency]
President Tinubu received the Group Chairman and CEO of Total Energies Worldwide, Patrick Pouyanne at the State House [PHOTO: X Presidency]
Nigeria contributes 8 to 10 per cent of TotalEnergies' global output and is home to more than 18 per cent of its overall investments but has been finding it difficult to get the oil major to retain its interest in offshore assets, which have been pretty problematic for IOCs because of their vulnerability to insecurity and vandalism.
Mele Kyari, the group managing director of NNPC Limited, told senators in November that over 5000 kilometres of pipeline in the country are not working, with the pipeline from Warri to Benin inactive for the past 22 years.
Last April, TotalEnergies announced plans to offload its 10 per cent minority stake in a joint venture holding 20 onshore and shallow water permits in the country.
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TotalEnergies said it has struck a deal with NNPCL to execute methane detection and measurement campaigns, employing its sophisticated drone-based AUSEA technology on oil & gas assets in the country.
"We will review troublesome areas, fiscally and otherwise, to incentivise gas production in the age of transition to cleaner energy. We are ready to make a difference as a government," the statement quoted Mr Tinubu as saying.
"The good handshake that we have is for partnership and to accelerate and incentivise gas production in pursuit of the energy transition."
Nigeria is on a drive to ramp up oil output, which hit a multi-decade low of below 1 million barrels last year, hobbled by oil theft, vandalism and decrepit infrastructures.
Output for November fell slightly to 1.37 million barrels per day, compared to 1.38 million bpd one month prior, both far behind the Organisation of Petroleum Exporting Countries' production quota of 1.74 million bpd.
