Honourable Minister of State for Petroleum Resources (Oil) Sen. Heineken Lokpobiri (8th from left); Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo (9th from right); Special Adviser on Energy to the President, Olu Verheijen (6th from right); GCEO NNPC Ltd, Mr. Mele Kyari (8th from right); Senior Vice President for Africa, Mike Sangster (7th from left); Managing Director/Chief Executive, TotalEnergies Upstream Companies in Nigeria, Matthieu Bouyer (6th from left) and other senior executives of NNPC Limited and TotalEnergies during the signing ceremony of Final Investment Decision (FID) agreement on the Ubeta Field Development Project at the NNPC Towers in Abuja.

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) on the Ubeta Field Development Project.

This milestone aligns with President Bola Ahmed Tinubu’s Presidential Executive Order on Oil & Gas Reforms, which aims to improve the investment climate and position Nigeria as a preferred investment destination in Africa’s oil and gas sector. 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/day) of gas and 10,000 barrels per day (BBLS/day) of associated liquids once operational. This will significantly contribute to securing gas supply for Nigeria Liquefied Natural Gas (NLNG) Limited.

At the signing ceremony held at the NNPC Towers, Group Chief Executive Officer Mallam Mele Kyari emphasized the continuous support of President Bola Tinubu’s administration in 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 stated.

Mike Sangster, Senior Vice President Africa, Exploration & Production at TotalEnergies, remarked, “Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria. I am pleased that we can launch this new gas project, which has been made possible by the government’s recent incentives for non-associated gas developments. Ubeta fits perfectly with our strategy of developing low-cost and low-emission projects and will contribute to the Nigerian economy through higher NLNG exports.”

Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, highlighted President Tinubu’s role in rekindling investor confidence in the oil and gas industry, assuring Nigerians of more investments to come. Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, noted that the project demonstrates the effectiveness of government policies in creating an investment-friendly environment for the gas sector.

The Ubeta gas condensate field, located in OML58, will be developed with a new six-well cluster connected to the existing Obite facilities via an 11km buried pipeline. Production is expected to start in 2027, reaching a plateau of 300 million cubic feet per day (about 70,000 barrels of oil equivalent per day, including condensates). Gas from Ubeta will be supplied to NLNG, a liquefaction plant on Bonny Island currently expanding its capacity from 22 to 30 million tonnes per annum (Mtpa), in which NNPC Limited holds a 49% interest.

The Ubeta project is a low-emission, low-cost development that leverages OML58’s existing gas processing facilities. 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 closely with NNPC Limited to enhance local content, with over 90% of manhours worked locally.

The Ubeta FID justifies the extensive efforts by NNPC Limited, backed by unwavering executive support, to address the challenges that have hindered the attractiveness of Nigeria’s oil and gas industry to foreign investors in recent years. The project is set to stimulate economic activities, create job opportunities, and generate significant value for stakeholders.