TotalEnergies Chooses Angola Over Nigeria for $6 Billion Energy Project: CEO Pouyanne Explains
The Chief Executive Officer (CEO) of TotalEnergies, Patrick Pouyanne, has shed light on the company’s decision to invest $6 billion in energy projects in Angola instead of Nigeria. Speaking with panelists at the Africa CEO Forum in Kigali, Rwanda, Pouyanne attributed the decision to Angola’s stable policy framework, contrasting it with Nigeria’s inconsistent policymaking environment.
Inconsistent Policies in Nigeria
Pouyanne highlighted that the inconsistency in Nigeria’s policymaking decisions was a significant factor in diverting the project to Angola. He noted that while the Niger Delta is the most productive region in West Africa, the erratic policy environment has made investment in the area untenable. He pointed out that TotalEnergies has not conducted oil exploration in the Niger Delta for 12 years due to these challenges.
“Nigeria loves to open topics without closing them. You love to debate. There is always a new legislature in Nigeria about 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.
The Impact of Policy Debates
Pouyanne emphasized the impact of ongoing debates and legislative changes on investor confidence. He stressed the importance of having a settled policy framework that investors can trust.
“In reality, the Niger Delta is the most prolific part of West Africa. But if you look at what happened, because of these debates, there has not been a single exploration in Nigeria for 12 years. It’s important to have a debate and then settle it and put a framework on the table that investors can trust,” he added.
Stable Policies in Angola
In contrast, Pouyanne praised Angola for its integrated and stable policy framework, which provided the certainty needed for long-term investments. He explained that this stability was a key reason behind TotalEnergies’ decision to commit $6 billion to projects in Angola.
“We have countries that have perfectly integrated policies like Angola. So, we go to Angola and announced a very large $6 billion projects in the beginning of the week because their framework is stable. So we know where we go,” Pouyanne concluded.
Conclusion
TotalEnergies‘ decision to choose Angola over Nigeria for its significant energy project underscores the critical role of stable and consistent policy environments in attracting and sustaining large-scale investments. The move reflects the challenges faced by investors in navigating uncertain regulatory landscapes and the importance of policy stability for long-term strategic planning.