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    Friday, July 5, 2024

    Driving Economic Development Beyond Oil & Gas: TotalEnergies’ Vision for Sustainable Growth

    The French multinational corporation is actively promoting economic growth throughout Africa by making significant tax contributions, investing strategically in infrastructure, implementing energy access initiatives, and prioritizing local empowerment.

    TotalEnergies, a multinational energy corporation, plays a pivotal role in fostering economic growth and generating substantial tax revenues in its operational markets, transcending its primary oil and gas exploration and production endeavors. In the current year alone, the company's production taxes and current income taxes encompassing all activities have reached an impressive $24.7 billion, reflecting an average tax rate of 38.2%. Furthermore, its extractive entities have diligently remitted $28.3 billion in taxes and production fees to the governing bodies of the states and territories within which it operates.

    In Africa, TotalEnergies operates in over 40 countries, contributing significantly to both economic and social development across its diverse portfolio. In Uganda, TotalEnergies is leading the Tilenga and Kingfisher oil field development project in the Lake Albert Basin. This project, undertaken in partnership with China National Offshore Oil Corporation and the state-owned Uganda National Oil Company, entails substantial investments in local infrastructure and community development initiatives.

    In the previous year, TotalEnergies EP Uganda embarked on an initiative to select and train 200 Ugandan youths through the Tilenga Massive Open Online Course and Tilenga Academy training program. This endeavor aimed to equip local youth with the requisite knowledge and skills to contribute to the TotalEnergies-operated Tilenga project during its production phase. By doing so, the company sought to foster local capacity building and encourage active youth participation in the sector. Training sessions were conducted at the Uganda Petroleum Institute in Kigumba as well as other internationally recognized oil and gas training centers. These sessions provided hands-on experience relevant to the installation and completion of the Tilenga project, which encompasses nine oil fields, a processing facility, underground pipelines, and supporting infrastructure. Furthermore, TotalEnergies is spearheading rural electrification initiatives within Uganda, having successfully constructed the 10 MW Soroti solar power plant. At the time of its commissioning, this plant stood as one of the largest grid-connected, privately-funded solar plants on the African continent.

    TotalEnergies is the largest operator in Angola, with interests in Blocks 17, 32, 0, 14, and 14K. In May of last year, the company announced the Final Investment Decision (FID) for the Cameia-Golfinho field development and anticipates the Quiluma and Maboqueiro gas fields to commence operations in 2026, supplying the Angola LNG plant. TotalEnergies holds a substantial 41% market share and accounts for nearly 45% of Angola's production. Additionally, the company maintains significant stakes in Angola LNG and the New Gas Consortium. TotalEnergies' considerable investments in Angola reflect its long-standing contributions to the nation's economy through associated infrastructure development, export revenues, taxes, royalties, and other levies.

    In the neighboring country of Namibia, TotalEnergies' significant light oil discoveries in the Orange Basin, specifically the Mangetti-1X and Venus-1X wells, represent a substantial economic opportunity. Upon thorough evaluation and appraisal of these discoveries, they have the potential to catalyze job creation, encourage local procurement, and attract foreign investments from various international players. These developments can significantly contribute to Namibia's economic growth and overall development.

    In Nigeria, our company's operations encompass a wide range of activities beyond oil and gas exploration and production. We are actively involved in renewable energy, electricity, green gas, and retail sectors. With over 1,800 employees and 530 service stations across the country, we are committed to serving the needs of our customers. Additionally, we hold an interest in the Nigeria LNG plant and are dedicated to pursuing carbon-neutral initiatives, such as the Zero Routine Flaring by 2030 program. Our two lubricant blending plants and several petroleum product depots further enhance our operational capabilities. Through our service stations, we market our products and services effectively, while also providing decentralized solar solutions to underserved communities. These endeavors have resulted in significant revenue generation, contributing positively to the country's economy..

    Across the continent, TotalEnergies operates under various contractual frameworks, primarily concession contracts and production sharing contracts (PSCs). In concession contracts, the company assumes ownership of assets and facilities, receives all production, bears all risks and costs, and remits royalties and taxes to the state. PSCs involve TotalEnergies financing and executing exploration and production at its own risk, with a share of production allocated to cover costs and profits. The remaining production is shared with the state or national company. These agreements reflect TotalEnergies' commitment to long-term business partnerships that mutually benefit the company and host countries through revenue sharing and responsible resource management.

    TotalEnergies is committed to enhancing energy accessibility and sustainability beyond its operational footprint. By 2030, the company aims to provide clean cooking access to 100 million individuals in Africa and India. This initiative entails a $400 million investment in LPG development and the production of pay-as-you-cook digital technologies to ensure affordability. Access to cleaner energy sources, such as LPG, can improve health, reduce gender inequalities, and mitigate CO2 emissions and deforestation. As a prominent player in the distribution of LPG in bottles, TotalEnergies is poised to positively impact over 50 million people in Africa and Asia through this endeavor.

    In addition, TotalEnergies actively contributes to socioeconomic development through its diverse range of corporate social responsibility initiatives. Primarily focused on the youth, these programs are funded by the TotalEnergies Foundation and support the company's broader community engagement efforts. Employees are encouraged to allocate up to three days of work time annually to community engagement projects, promoting these values globally through the TotalEnergies Foundation program. These initiatives not only uplift and empower local communities but also position them as integral components of TotalEnergies' operations.

    “TotalEnergies' contributions beyond oil and gas are transformative for Africa. By driving local capacity building, economic diversification and sustainable development, they are not only investing in the continent's future but also ensuring that African communities reap the benefits of their natural resources. This strategic approach is essential for fostering long-term growth and prosperity across the region,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

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