NNPC-TotalEnergies JV has announced a $550 million final investment decision for the Ubeta Field Development Project, meant to improve the oil and gas sector of the economy.

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According to NNPC, the move aligns with President Bola Tinubu’s Presidential Executive Order on Oil and Gas Reforms, designed to improve the investment climate and position Nigeria as the premier investment destination for the oil and gas sector in Africa.

Discovered in 1964, the Ubeta field, located northwest of Port Harcourt in the eastern Niger Delta, is projected 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.

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

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

“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, remarked, “Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West. I am pleased that we can launch this new gas project, enabled 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), Senator Heineken Lokpobiri, praised President Tinubu for rekindling investor confidence in the oil and gas industry, assuring that more investments are forthcoming.

Also speaking, the 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 (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, which is expanding its capacity from 22 to 30 Mtpa, with NNPC Limited holding a 49% interest.

“Ubeta is a low-emission and low-cost project, leveraging existing gas processing facilities in OML58. The carbon intensity of the project 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 FID reflects NNPC Limited’s commitment, with strong executive support, to address the challenges that have hindered the attractiveness of Nigeria’s oil and gas industry to foreign investors in recent years”, NNPC quoted in the statement.