- Kyari lauds presidential executive order for boosting Nigeria’s oil, gas sector
In a significant move to enhance Nigeria’s oil and gas production, the NNPC-TotalEnergies joint venture has announced a $550 million Final Investment Decision (FID) for the Ubeta Field Development Project.
Chief Corporate Communications Officer of NNPC Ltd., Olufemi Soneye, stated that this milestone aligns with President Bola Ahmed Tinubu’s Presidential Executive Order on Oil & Gas Reforms, aimed at improving the investment climate and positioning Nigeria as a preferred destination for oil and gas investments in Africa.
Discovered in 1964, the Ubeta field, located northwest of Port Harcourt in the Niger Delta, is set to produce approximately 350 MMScf/day of gas and 10,000 BBLS/day of associated liquids, bolstering gas supply to Nigeria Liquefied Natural Gas (NLNG) Limited.
At the signing ceremony at NNPC Towers, Group Chief Executive Officer Mallam Mele Kyari acknowledged the critical support from President Tinubu’s administration in creating a favorable operational environment. “The Presidential Executive Order is instrumental to us reaching this significant milestone,” Kyari said.
TotalEnergies’ Senior Vice President Africa, Exploration & Production, Mike Sangster, highlighted Ubeta as part of a series of projects developed in Nigeria, noting its alignment with the strategy of developing low-cost, low-emission projects that will enhance NLNG exports and contribute to the Nigerian economy.
Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, and Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, both praised President Tinubu for revitalizing investor confidence and creating a conducive investment environment in the gas sector.
Located in OML58, the Ubeta gas condensate field will feature a new 6-well cluster connected to existing facilities via an 11km pipeline. Production is expected to begin in 2027, with a plateau of 300 million cubic feet per day. Gas from Ubeta will supply the NLNG plant in Bonny Island, which is expanding its capacity from 22 to 30 Mtpa, with NNPC holding a 49% interest.
The project leverages existing gas processing facilities and will reduce carbon intensity with a 5 MW solar plant and electrified drilling rig. NNPC and TotalEnergies aim to enhance local content, with over 90% of manhours worked locally.
The Ubeta FID marks a significant effort by NNPC, supported by executive actions, to address challenges that have hindered foreign investment in Nigeria’s oil and gas industry. The project promises to stimulate economic activities, create jobs, and generate substantial value for stakeholders.
