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The $550 million upstream gas project between NNPC Ltd. and TotalEnergies for the development of the Ubeta field has officially commenced, the Presidency announced on Tuesday. Special Adviser to the President on Energy, Olu Verheijen, disclosed this during the inaugural US-Nigeria Strategic Energy Dialogue in Washington, D.C., hosted by the U.S. State Department.

According to a statement by NNPC Ltd.’s Chief Corporate Communications Officer, Olufemi Soneye, the Final Investment Decision (FID) for the Ubeta Field Development Project was signed in Abuja in June. The Ubeta field, located northwest of Port Harcourt, was discovered in 1964 and is set to produce 350 million standard cubic feet of gas per day once operational.

Verheijen highlighted President Bola Ahmed Tinubu’s major energy reforms since June 2023, which have focused on enhancing energy security, attracting investments, and fostering collaboration with partners like the U.S. The reforms aim to improve the gas-to-power value chain, including initiatives for smart metering and clearing investor debts.

She noted that five new executive orders have been issued to provide fiscal incentives for investment, streamline contract processes, and reduce carbon emissions from gas production. These reforms are expected to unlock up to $2.5 billion in new oil and gas investments.

U.S. Assistant Secretary of State Geoffrey Pyatt praised the dialogue, stating, “The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria, advancing shared energy security, decarbonisation, and economic growth goals.”

Nigeria’s delegation to the event was led by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and included officials from various regulatory bodies, while the U.S. delegation featured representatives from USAID, the U.S. Department of Energy, and the Export-Import Bank.