Nicolas Terraz, MD, Total E&P
Total Exploration and Production Company has been present in Nigeria for more than sixty years as a group, in partnership with the Nigerian government and in different equity associations with other private companies. The company is involved in growth of all streams of the oil industry: upstream, midstream and downstream.
Recently, at a management session organised by the Nigerian Association of Petroleum Explorationists (NAPE), which was sponsored by Total, the company revealed that it is the only Nigerian fully integrated oil and gas company with ambition to become a responsible energy major. This is the meaning of its corporate motto, committed to better energy.
Speaking at the management session, Managing Director of Total, Nicolas Terraz said, the company’s ambition challenges it to provide more reliable, affordable and clean energy to the worlds growing population. Reliable, affordable and clean energy are all three words of equal importance.
Terraz made it known that reliability is significant because “Everybody expects energy to be readily and continuously available in their daily life.” Affordability becomes essential because cheap energy is necessary to spur the economic development of billions of people seeking better living conditions; and all polls indicate that it is the clear priority of all customers around the world.
Energy becomes meaningful when it is clean because there is need to reduce environmental footprint and CO2 emissions.
Terraz stated further that Total upstream activities is run by its exploration and production affiliate, like most of the other IOCs in Nigeria. It has moved from a predominantly land-based production in the 60s to offshore in the 80s and then deep offshore in 2005, developing a technically skilled industry workforce in the process.
Over the years, despite various challenges in the industry, Total has added over 3 billion barrels of oil equivalent to Nigeria’s production and with its Egina project coming on stream, it will add another 200,000 bopd, which is approximately 10% of Nigeria’s oil production.
Terraz added, “In the midstream sector of the industry, we have 15% interest in Nigeria LNG, which currently operates 6 LNG liquefaction trains on Bonny Island. Indeed, 40% of our production in Nigeria is also gas.” This is bound to increase in the coming years as Total looks to expand its gas business. This is part of its objective to provide more reliable, affordable energy to Nigeria’s growing population. Total is also currently developing a 100MW Katsina Solar Farm project in Katsina.
Being the only oil major in the downstream, Total’s downstream affiliate is a market leader in Nigeria with over 550 service station spread across the nation. In 2014, Total pioneered the first solar powered station in West Africa, the Onigbagbo station at Ikeja in Lagos. Since then, the company has built over 15 solar stations in Nigeria.
Terraz revealed further that “Our global target is to reach 5,000 solar stations by 2020. Total downstream activities are also number one in Africa with over 4,300 service stations in the continent offering a one-stop shop experience.” Concerning its customers, the company aims to become providers of integrated solutions, delivering customer services shaped by closeness and innovation. This involves in particular transforming of its service stations into community hubs with local and mobility-related services, as part of a multi-energy network.
The company believes there are still many opportunities and potentials for growth in the industry. Terraz was hopeful that Nigeria’s economy is gradually regaining the confidence of the global investment community and opportunities are not limited to the oil and gas sector.