The $550 million Ubeta Upstream Gas Project, a joint venture between NNPC Ltd. and TotalEnergies, has officially commenced, marking a significant milestone in Nigeria’s energy sector.
Announced by the Presidency, the project aims to enhance Nigeria’s gas production and strengthen energy security, targeting an output of 350 million standard cubic feet of gas per day when fully operational.
Olu Verheijen, Special Adviser to the President on Energy, shared this update during the inaugural US-Nigeria Strategic Energy Dialogue in Washington, DC.
She noted that President Bola Ahmed Tinubu’s energy reforms, initiated in June 2023, have fostered a favorable investment climate, attracting global energy companies and boosting confidence in Nigeria’s gas-to-power value chain.
These reforms focus on improving energy security, attracting investments, and fostering collaboration with key partners, including the U.S. government.
Verheijen emphasized that these initiatives have significantly enhanced the viability of Nigeria’s gas-to-power sector, including efforts to improve cash flows in electricity distribution, settle outstanding debts to investors, and reduce carbon emissions from gas production.
The Final Investment Decision (FID) for the Ubeta Field Development Project was signed in Abuja in June 2023.
The Ubeta field, located northwest of Port Harcourt in Rivers State and discovered in 1964, holds great potential for Nigeria’s energy landscape.
Upon full operation, it will deliver 350 million standard cubic feet per day of gas and 10,000 barrels per day of associated liquids, significantly boosting supplies to Nigeria Liquefied Natural Gas (NLNG) Limited, which has faced declining LNG production and rising cooking gas prices.
Situated in Oil Mining Lease (OML) 58, the Ubeta project includes a new 6-well cluster connected to existing facilities via an 11 km buried pipeline.
Production is anticipated to begin by 2027, with peak output projected at 300 million cubic feet per day, equivalent to approximately 70,000 barrels of oil equivalent daily.
The gas will be directed to the NLNG plant on Bonny Island, currently expanding its capacity from 22 to 30 million tonnes per annum (Mtpa).
The Ubeta project also prioritizes sustainability, leveraging existing gas processing infrastructure to minimize costs and emissions.
A 5 MW solar plant is under construction at the Obite site, and the drilling rig will be electrified to reduce its carbon footprint.
TotalEnergies has committed to maximizing local content, ensuring that over 90% of work hours will be performed by Nigerian personnel.
Verheijen highlighted that President Tinubu has signed five new executive orders supporting energy sector reforms, unlocking up to $2.5 billion in new oil and gas investments in Nigeria.
These orders are designed to provide fiscal incentives for investment and streamline the contract finalization process for developing gas infrastructure.
U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, emphasized the importance of the US-Nigeria energy partnership, noting that the dialogue advances shared goals of energy security, decarbonization, and economic growth.
Nigeria’s delegation to the dialogue was led by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and included representatives from various regulatory bodies.
The U.S. delegation featured officials from multiple agencies, underscoring the broad scope of the discussions.
The NNPC-TotalEnergies joint venture’s decision for the Ubeta Field Development Project came in direct response to President Tinubu’s Executive Order on Oil & Gas Reforms, aimed at enhancing Nigeria’s investment climate and positioning the country as a premier destination for oil and gas investments in Africa.
Ekperikpe Ekpo reiterated the project’s significance for Nigeria’s energy future, stating that it will contribute substantially to gas production while supporting broader economic development and environmental sustainability strategies.
The Ubeta project is expected to mitigate Nigeria’s energy crisis by stabilizing supplies to the NLNG facility, which has experienced inconsistent gas supplies and rising energy costs.
TotalEnergies is committed to low-cost and low-emission operations, utilizing existing infrastructure while planning for environmental sustainability through the installation of the solar plant and electrification of the drilling rig.
