Nigeria’s Fiscal Reforms Boost TotalEnergies’ Deepwater and Gas Projects as Investor Confidence Returns
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Nigeria’s improving fiscal environment and policy reforms are translating into concrete investments, with TotalEnergies advancing new gas and deepwater projects, expanding exploration, and creating fresh opportunities for domestic companies, according to Victor Bamidele, the company’s Deputy Managing Director, Deepwater District.
Speaking on Tuesday at the 49th Nigeria Annual International Conference and Exhibition (NAICE 2026) in Lagos, organized by the Society of Petroleum Engineers (SPE), Bamidele stated that the nation’s energy sector has entered a new phase where enhanced fiscal incentives are restoring investor confidence and accelerating project development.
Participating in a panel titled “Policy in Practice: Aligning Fiscal Strategy, Foreign Investment and Local Content for Sustainable Growth in Nigeria,” Bamidele described the current period as a turning point for the country’s oil and gas sector, noting that discussions have shifted from celebrating past achievements to realizing new investments.
Reflecting on the industry’s recent history, he recalled that while TotalEnergies’ landmark projects like Akpo and Egina have been highly successful—with Akpo producing for over 17 years and Egina achieving first oil in 2018—no new deepwater projects had been brought onstream in Nigeria since then.
“Today, I am happy to speak about projects that have matured because of the shift in processes,” he said, attributing this momentum to government reforms that strengthened fiscal incentives, particularly for natural gas development.
In response to these improvements, TotalEnergies took the Final Investment Decision (FID) on the Ubeta gas project in 2024. Bamidele disclosed that construction is progressing steadily, with production expected to commence next year. He highlighted that Ubeta represents a major milestone for Nigerian content, with numerous local companies actively participating in its execution.
Beyond Ubeta, TotalEnergies is nearing an FID on the Ima project alongside its partners, targeting first production by the fourth quarter of 2028. The company is also advancing the Preowei deepwater development while reviving offshore exploration.
Bamidele announced that TotalEnergies plans to drill one deepwater exploration well before the end of this year, followed by two additional exploration wells in 2027. This renewed exploration drive signals growing confidence in Nigeria’s upstream potential and a return to long-term investment in offshore resources.
He urged Nigerian companies to position themselves strategically for the upcoming wave of projects. “This is your moment,” Bamidele told indigenous service providers and contractors. “If you have projects that are taking FID, people just need to take position and be prepared for the big time.”
He emphasized that the success and profitability of future developments will heavily depend on local participation, noting that project execution can no longer rely on imported capabilities. “There is no way to develop these projects profitably if we don’t have local participation,” he said.
Bamidele also explained that favorable fiscal policies enhance Nigeria’s competitiveness when multinational companies allocate capital internally. Securing funding for projects like Preowei requires competing directly with opportunities in countries such as Namibia, Angola, and Uganda.
“When fiscal terms are improved and there is more visibility, we are empowered,” he said. “Our projects compete with others across Africa. The outlook of the country is one of the most significant factors in attracting funding.”
He added that Nigeria’s improved economic outlook has positively influenced the willingness of shareholders and partners to commit capital. “We are perceived to be in a healthier situation than we were a couple of years back,” he noted.
Bamidele concluded by praising the Society of Petroleum Engineers for sustaining professional engagement and fostering industry growth, reinforcing the conference’s central message: that policy consistency, competitive incentives, and strong local content are restoring confidence and driving a new cycle of upstream investment in Nigeria.
