The $550 million upstream gas project between NNPC Ltd. and TotalEnergies for the development of the Ubeta field has begun, the Presidency stated on Tuesday.
Olu Verheijen, Special Adviser to the President on Energy, made the announcement during a first US-Nigeria Strategic Energy Dialogue held by the US State Department in Washington, D.C.
According to a statement signed by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, in Abuja on Tuesday, the 550 million USD Final Investment Decision (FID) for the Ubeta Field Development Project was signed in Abuja in June of this year.
The Ubeta field was discovered in 1964 and is located northwest of Port Harcourt, Rivers State.
Verheijen, speaking at a luncheon as part of the inaugural US-Nigeria Strategic Energy Dialogue, said the upstream gas project will produce 350 million standard cubic feet of gas per day once operational.
Verheijen noted that President Bola Ahmed Tinubu’s massive energy reforms, which began in June 2023, were aimed at increasing energy security, attracting investments, and deepening coordination with key partners, including the US government.
She stated that the country’s gas-to-power value chain is now more viable as a result of important changes.
According to her, the changes included steps to enhance cash flows in power distribution through smart metering and the payment of outstanding debts owed to investors, as well as measures to cut carbon emissions from gas production.
She noted that the President issued five new executive orders to assist the reform initiatives, with the goal of providing fiscal incentives for investment and lowering the cost and time required to finalize and implement contracts to develop and expand gas infrastructure.
According to the presidential adviser, the guidelines aim to instantly free up to $2.5 billion in fresh oil and gas investment in the country.
Geoffrey Pyatt, the United States Assistant Secretary of the State Department’s Bureau of Energy Resources, responded that the dialogue was appropriate and strategic.
“The inaugural U.S.-Nigeria Strategic Energy Dialogue has laid the groundwork for increased energy collaboration between the two countries. We’re working together to achieve our common goals of energy security, decarbonization, and economic growth,” he stated.
Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), led Nigeria’s delegation at the event. Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, and NNPC Limited were also present.
The United States delegation comprised representatives from the Bureau of African Affairs, USAID, the Department of Energy, the Trade and Development Agency, and the Export-Import Bank.
