The Nigerian National Petroleum Company Ltd (NNPCL) has kicked off the $550m upstream gas project which it signed with TotalEnergies on the development of Ubeta field.
This was announced on Tuesday by the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, at an inaugural US-Nigeria Strategic Energy Dialogue.
The event was hosted by the US State Department in Washington, DC.
The presidency in a statement seen by NewsNGR said that the upstream gas project would deliver 350 million standard cubic feet of gas per day when it operates at full capacity.
According to the presidency, the deal highlights the benefits of the oil sector reforms introduced by President Tinubu which is aimed at unlocking investments in the sector.
In June 2024, the NNPCL announced a final investment decision (FID) for the project saying that aside from the 550MMScf/day of gas, the project will deliver 0,000 BBLS/day of associated liquids.
Ubeta field was discovered in 1964, North-West of Port Harcourt in the eastern part of the Niger Delta.
NewsNGR understands that Ubeta fits with Total’s strategy of developing low-cost and low-emission projects, and would contribute to the Nigerian economy through higher NLNG exports.
The president had signed an executive order aimed at unlocking over $2.5bn in new oil and gas investments in Nigeria.
“We see resilient demand for gas through the energy transition as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately,” said Verheijen.
“Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation and clean cooking.
“I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue. The goal of this dialogue is for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power.”
Verheijen said Nigeria seeks existing and potential partners to better understand the country’s areas of priority.
She added that it would enhance collaboration and produce tangible outcomes.