The $550 million upstream gas project between NNPC Ltd. and TotalEnergies for the development of the Ubeta gas field has officially commenced, according to an announcement from the Presidency on Tuesday. The project is set to significantly boost Nigeria’s gas production capacity.
Olu Verheijen, Special Adviser to the President on Energy, made the disclosure during the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, DC. She highlighted that the Ubeta field, discovered in 1964 and located northwest of Port Harcourt, Rivers State, will produce 350 million standard cubic feet of gas per day once fully operational.
The final investment decision (FID) for the Ubeta Field Development Project was signed in June 2023 in Abuja. Verheijen noted that the project is a direct result of energy reforms introduced by President Bola Ahmed Tinubu, aimed at improving energy security, attracting investments, and fostering deeper collaboration with international partners like the U.S.
“The key reforms have improved the viability of the gas-to-power value chain, including initiatives like smart metering for better cash flows in electricity distribution, the payment of outstanding debts to investors, and efforts to reduce carbon emissions from gas production,” Verheijen stated.
Additionally, the President issued five new executive orders to enhance investment in gas infrastructure. These orders provide fiscal incentives and are designed to accelerate contract finalization and project implementation, potentially unlocking $2.5 billion in new oil and gas investments.
Geoffrey Pyatt, U.S. Assistant Secretary for the Bureau of Energy Resources, praised the timing and significance of the US-Nigeria Strategic Energy Dialogue, stating, “This dialogue sets the stage for strengthened energy collaboration between the United States and Nigeria. Together, we’re advancing shared goals on energy security, decarbonization, and economic growth.”
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, led the Nigerian delegation, which included officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Content Development and Monitoring Board, and NNPC Ltd. The U.S. delegation featured representatives from USAID, the U.S. Department of Energy, and the Export-Import Bank.
This landmark partnership aims to not only bolster Nigeria’s energy capacity but also pave the way for more sustainable and economically beneficial energy solutions for both countries.
