The country’s oil production capacity is expected to receive a boost of about 40,000 barrels a day from TotalEnergies’ Ikike field set to become operational by the end of this year and early 2022.
The French company made a final investment decision (FID) on Nigeria’s Ikike project in January 2019 and hopes to reach its first oil target late this year. The field will be tied back to the existing Amenam field.
Furthermore, the field is expected to help the firm and country reduce the volume of gas flared from its facilities.
Addressing journalists, yesterday, the Deputy Managing Director, Deep Water District, Victor Bandele stated that the Ikike project affirms the company’s resolve to remain in Nigeria, as the field will sustain the OML 99 plateau and also help to sustain Total’s zero-gas flaring agenda.
According to him, we need to burn less carbon and be very passionate about the environment, adding that the oil firm wants to reduce the greenhouse gas emission with a target to end routine flaring by 2030.
Having reduced gas flare volumes by 75 per cent till date, he explained that 45 per cent of routine flaring would be ended by 2029 and less than 0.4MSm3 per day by 2025.
He added that more than 90 per cent of the gas produced offshore today is exported via the Amenam-Bonny gas pipeline to NLNG, noting that none of the gas in the deepwater is flared.
“Ikike Project to come onstream by Q4 2021/Q1 2022, producing between 30,000-40,000bpd. He pointed to the OFON 2 project, which earned more than one million dollars for Nigeria through the sale of carbon credit from the gas flare/emission reduction achieved by OFON.
“That is what the TotalEnergies package is all about. We want to meet the challenges of the 21st century and play an active role in the transformation that is underway in the energy industry. We have changed our logo up to seven times in the last 67 years. Shareholders approved the new logo and name change in July. Our new logo shows our movement and the strategic line of our investment. We are investing in the seven energies of oil, natural gas, electricity, hydrogen, biomass, wind and solar in a systematic manner.
“In Nigeria, the transformation will be reflected in the lines of business. In the upstream, we have three active OMLs. We take safety very seriously and we are selecting the most competitive projects for profitability. We are renewing our reserves through exploration and the acquisition of already discovered resources.
“We are giving priority to low-cost projects, while increasing our ability to innovate. We are consolidating and accelerating investments in low carbon electricity from renewables. We are integrating the electricity chain through production, storage, trading and supply. We are equally investing in carbon sinks,” he said.
At the Ordinary and Extraordinary Shareholders’ Meeting, shareholders approved, almost unanimously, the resolution to change the company’s name from Total to TotalEnergies, thereby anchoring its strategic transformation into a broad energy company in its identity.
“Energy is life. We all need it and it is a source of progress. So today, to contribute to the sustainable development of the planet facing the climate challenge, we are moving forward, together, towards new energies. Energy is reinventing itself, and this energy journey is ours. Our ambition is to be a world-class player in the energy transition. That is why Total is transforming and becoming TotalEnergies,” declared Patrick Pouyanné, Chairman and CEO of TotalEnergies.
Executive Director, Corporate Affairs and Services, Abiodun Afolabi, affirmed the company’s resolve to remain operational in Nigeria despite the concerns in the Petroleum Industry Act.
“We believe the PIA is a landmark Act that will have a huge impact on Nigerians. A lot of effort was made by the government to dialogue with the industry. We however await the outcome from the implementation committee. We do not have any intention to depart from the country. We have the ambition to remain in Nigeria and do business in the country. Nigeria remains an important asset for Total”, he added.
Executive Director, Port Harcourt District, Obi Imemba, added that the firm will continue exploration but reduce its carbon footprint, saying, “we will produce more gas and produce oil at a reduced cost. Exploration will be in areas where the cost is cheaper. Ikike project is more than 70 per cent complete. We are expecting to commence in the next couple of months. OML 100 will equally witness an end to routine flares”.