AGS NEWS – In a significant step to boost Nigeria’s oil and gas production, the NNPC-TotalEnergies JV has announced a $550 million final investment decision for the Ubeta Field Development Project.

This decision aligns with President Bola Tinubu’s Presidential Executive Order on Oil and Gas Reforms, aiming to improve the investment climate and position Nigeria as a top destination for oil and gas investment in Africa.

Discovered in 1964, the Ubeta field, located northwest of Port Harcourt in the eastern Niger Delta, is expected to produce about 350 million standard cubic feet per day (MMScf/d) of gas and 10,000 barrels per day (BBLS/d) of associated liquids.

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This project will tap into Nigeria’s vast gas reserves and support gas supply to Nigeria Liquefied Natural Gas Limited.

NNPC Ltd.’s Chief Corporate Communications Officer, Olufemi Soneye, released a statement in which Group Chief Executive Officer Mallam Mele Kyari expressed gratitude for stakeholder support and highlighted the positive impact of President Bola Tinubu’s administration on creating a conducive operational environment.

“We appreciate Mr. President for supporting us with the appropriate fiscal environment.

The Presidential Executive Order is instrumental to us getting to this significant milestone, and we are now seeing the impact of the policy,” Kyari said.

TotalEnergies’ Senior Vice President Africa, Exploration & Production, Mike Sangster, noted that Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, following Ikike and Akpo West.

He praised the government’s recent incentives for non-associated gas developments, which enabled the launch of this new gas project.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, praised President Tinubu for restoring investor confidence in the oil and gas industry and assured that more investments are on the way.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated that the project demonstrates the effectiveness of government policies in fostering a conducive environment for investment in the gas sector.

The Ubeta gas condensate field, located in OML58, will feature a new 6-well cluster connected to the existing Obite facilities via an 11km buried pipeline.

Production is expected to start in 2027, with a peak output of 300 million cubic feet per day.

Gas from Ubeta will be supplied to NLNG, which is expanding its capacity from 22 to 30 Mtpa, with NNPC Limited holding a 49% interest.

The project is designed to be low-emission and low-cost, leveraging existing gas processing facilities in OML58.

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Its carbon intensity will be further reduced through a 5 MW solar plant under construction at the Obite site and the electrification of the drilling rig.

TotalEnergies is collaborating with NNPC Limited to enhance local content, with over 90% of man-hours expected to be worked locally.

The Ubeta project reflects NNPC Limited’s commitment to addressing the challenges that have hindered Nigeria’s oil and gas industry attractiveness to foreign investors.

The project includes a comprehensive Nigerian Content plan and is set to stimulate economic activities, create jobs, and generate significant value for stakeholders.