Managing Director, TotalEnergies, Matthieu Bouyer, has identified stronger collaboration among oil producers through a shared services framework to enhance operational efficiency and reduce production costs across Nigeria’s oil and gas sector.
Speaking on the topic: “How Shared Services Could Help the Industry Optimise Production,” at the ongoing 43rd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE), in Lagos, Bouyer described the idea as both timely and strategic, given Nigeria’s renewed efforts to maximise output from existing assets while developing new deepwater projects.
According to him, shared services — such as joint logistics, shared vessels, rigs, and infrastructure — could significantly improve production efficiency and reduce the high operational costs that currently burden oil companies operating in Nigeria.
“When multiple operators are active in deepwater simultaneously, support services, logistics, and supply chains become more localized and efficient. Shared use of vessels, rigs, and infrastructure could drastically cut costs,” he said.
Citing the example of the Q7000 vessel, which entered Nigerian waters in 2022, Bouyer who was represented by the Deputy General Manager, Victor Bandele noted that although TotalEnergies led the effort to bring the vessel into the country, several other international oil companies (IOCs) also benefited from its use.
“That’s the power of shared assets. Expanding deepwater activity is not just about boosting output—it’s about creating an ecosystem where collaboration and shared services thrive,” he explained
The TotalEnergies executive recalled Nigeria’s progress in deepwater projects over the years, noting that the company achieved Final Investment Decision (FID) for the Akpo field in 2003 and reached first oil in 2009. Other major projects such as Bonga (2005), Erha (2006), and Egina (2018) marked significant milestones in Nigeria’s offshore development.
However, he observed that each of these projects came with its own Floating Production Storage and Offloading (FPSO) unit — a model that, while necessary at the time, required enormous capital investment.
He explained that although operational efficiency improved with each new FPSO, Nigeria has not commissioned any new FPSO since the Egina project in 2018, leading to a slowdown in deepwater activity.
“After Egina came on stream, we experienced a lull. But with the Petroleum Industry Act (PIA) now in place, we are seeing renewed momentum across the industry. More projects mean more opportunities for shared services, improved efficiency, and lower costs,” he said
Bouyer commended the government for its recent policy reforms under the PIA, which he said are helping to open up Nigeria’s deepwater sector for renewed investment. He revealed that several deepwater developments by Shell and other operators are currently in the pipeline, signaling a more vibrant operating environment.
“We are beginning to see increased activity and collaboration, which naturally improve shared services and operational efficiency. The key is to keep maturing and delivering these projects,” he said.
The Managing Director also outlined TotalEnergies’ plans to sustain and optimise production from existing assets. He noted that the company’s Egina FPSO has a production capacity of over 200,000 barrels per day but currently produces less than half of that due to natural field decline.
To mitigate this, he said the company is pursuing multiple tieback projects to sustain and enhance output, while also advancing new exploration work around existing fields like Akpo and Egina.
“We plan additional exploration activities next year, including work on our newly acquired block, which we hope to mature quickly for potential drilling by 2026,” he stated.
According to him, the benefits of shared services go beyond cost savings — they also build resilience and speed in response to operational challenges. When companies share infrastructure, expertise, and logistics, he said, the entire sector becomes more efficient and competitive.
“Shared services and collaboration are the future. They allow us to reduce costs, increase uptime, and respond faster to challenges. But to share, we must first have enough to share—meaning more projects, more capacity, and more activity,” he said.
He urged industry players to deepen collaboration and align efforts towards a shared vision for growth, stressing that cooperation, not competition, will drive Nigeria’s next phase of energy development.
“Let’s continue to mature and deliver new projects, strengthen partnerships, and foster an environment where shared services become the norm rather than the exception. That’s how we will optimise production, sustain growth, and secure Nigeria’s place as a leading deepwater hub in Africa,” he stated.
Industry leaders underscored that operational efficiency in Nigeria’s oil and gas sector hinges on clear regulation, technological adoption, and greater collaboration across operators.
The Commission Secretary and Legal Adviser, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Olayemi Adeboyejo noted that efficiency begins with clarity in regulation and predictability of outcomes.
“I believe regulation is the most important architecture of efficiency. When regulation is clear and outcomes are predictable, decision-making becomes easy—everyone knows what is expected,” Adeboyejo said.
Representing the Commission Chief Executive, Gbenga Komolafe, the legal adviser explained that the Petroleum Industry Act (PIA) transformed Nigeria’s regulatory landscape by creating a performance-driven regulator with a clear mandate to instil confidence among investors, operators, and host communities.
“Before we issue any regulation, we conduct extensive stakeholder consultations. This ensures that operators, stakeholders, and the general public are all carried along. We’re not just enforcers anymore; we’re business enablers,” she added.
According to her, the Commission now relies heavily on data and technology for oversight. “We no longer regulate by knocking on doors. We do it from our dashboards—through technology and data. Our guidelines are clear, quantitative, and transparent. Everyone knows what we want and when we want it,” she said.
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