Despite SA plans, TotalEnergies still plays key role in Africa

TotalEnergies injected some positivity in its share price when news broke of its intention to exit the offshore gas project in South Africa.

TotalEnergies’ local content strategy involves not only exploiting energy resources, but also supporting local employment, capacity building and partnership formations.

Angola: Alongside project partners Petronas and national oil company Sonangol, TotalEnergies reached FID on the Kaminho deepwater project in Angola in May 2024.

The project, situated in Block 20/11 and comprising the Cameia and Golfinho fields, represents the first major deepwater development in the Kwanza Basin and incorporates an FPSO with the capacity to produce 70,000 barrels per day (bpd).

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Notwithstanding the opportunity to support oil production in Angola by monetizing offshore resources, the project’s strong local content focus has already begun to deliver economic benefits for the country.

The project involves 10 million hours of work to be conducted by local companies, primarily covering offshore operations and the construction of local sites.

Additionally, the project prioritises long-term capacity building and skills development.

TotalEnergies and Sonangol signed an MOU in May 2024 to pool their expertise in research and technology, specifically collaborating on the development and operation of a research and development centre in the city of Sumbe.

The partners will also work towards developing the skills of Sonangol’s research and technology teams, with a focus on the fields of reservoir geology, process electrification and photovoltaics – supporting Sonangol’s transformation into a competitive national operator.

Generating local opportunities in oilfield production

Nigeria: Active in Nigeria since 1956, the company’s offshore operations have not only increased oil production in the country, but also created new jobs, business opportunities and training initiatives for local communities.

TotalEnergies currently employs 1,800 people in the country, with various features of offshore projects constructed in Nigeria and delivered by local subcontractors.

The company reached FID on the development of the Ubeta gas field in June 2024, alongside partner the Nigerian National Petroleum Corporation (NNPC).

Situated in OML 58, the field will be developed with a six-well cluster connected to existing production facilities.

TotalEnergies is working closely with the NNPC to enhance local content at OML 58, with more than 90% of the man hours for the new development worked locally

Other projects featuring local employment opportunities include the Ikike field in OML 99 which started production in 2022, with 95% of the man hours worked locally.

The platform and topside modules for the project were entirely built and assembled by local subcontractors, showcasing the scope of business opportunities available for local companies with field development in Nigeria.

Delivering sustainable infrastructure solutions

Uganda/Tanzania: The company is a leading partner developing the East African Crude Oil Pipeline (EACOP) – a 1,443km pipeline linking Uganda’s Tilenga and Kingfisher fields to Tanzania’s Port of Tanga – with local content forming the base of the project.

Since 2022, EACOP has accumulated more than 180,000 hours of training with 21,000 people across the two countries.

By the end of last year, the project’s employment was measured at 1,200 people in Uganda and 3,200 people in Tanzania, with local employees working 92% of the project’s hours.

Utilisation of local goods and services for the project has resulted in $45m worth of products purchased from local suppliers in Uganda and $172m purchased from local suppliers in Tanzania.

Maximising job opportunities

In March 2024, TotalEnergies launched a $2.3m Industry Enhancement Centre in Uganda, aimed at improving the capacity of local SMEs across the oil and gas sector.

The centre provides a range of services, including industry information, customised business advisory, training and capacity building, and market access.

TotalEnergies has also increased its interests in the Moho license in the Republic of Congo (ROC) in April 2024.

The deep-offshore project produces an average of 140,000 bpd and is a significant contributor to the country's oil production and has created job opportunities and provided training for local workers, with 600 Congolese companies working on the project and 600,000 hours of training provided by TotalEnergies.

The project has also focused on energy efficiency and reducing its environmental impact through the use of advanced technologies and a zero-flaring approach.