NNPCL, TotalEnergies Sign $550m FID On Ubeta Gas Field

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.

The Nigerian National Petroleum Corporation Ltd and TotalEnergies, the operator of Nigeria’s OML 58 onshore license with a 40% stake, have inked a $550 million Final Investment Decision (FID) for the development of the Ubeta gas field.

The OML 58 licence, located approximately 80 kilometers northwest of Port Harcourt in Rivers state, has two fields that are now in production: the Obagi oil field and the Ibewa gas and condensate field. The Obite treatment centre processes OML 58 gas production, which is then delivered to both the Nigerian domestic gas market and the Nigeria LNG (NLNG) plant.

On Thursday, NNPC and TotalEnergies inked an agreement in Abuja.

The Ubeta gas condensate field, also located in OML58, will be developed with a new 6-well cluster connected to the current Obite facilities via an 11-kilometer buried pipeline.

Production is projected to begin in 2027, with a plateau of 300 million cubic feet per day (about 70,000 barrels of oil equivalent per day, including condensate).

Gas from Ubeta will be supplied to NLNG, a liquefaction plant on Bonny Island that is currently expanding its capacity from 22 to 30 Mtpa and in which TotalEnergies owns a 15% stake.

Ubeta is a low-emission and low-cost development that takes advantage of OML 58’s current gas processing capabilities. The project’s carbon intensity will be further decreased by a 5 MW solar plant now under development at the Obite site, as well as the electrification of the drilling rig. TotalEnergies is collaborating closely with NNPCL to improve local content, with more than 90 percent of man-hours being performed locally.

Mele Kyari, Group Chief Executive Officer (GCEO) of NNPC, stated at the ceremony that once operational, the Ubeta project will generate around 350 million standard cubic feet (MMScf) of gas and 10,000 barrels per day of related liquids.

According to Kyari, this is an opportunity to tap into massive gas reserves and contribute to securing gas supply for Nigeria’s liquefied natural gas (LNG).

“I’m very convinced that many more projects will come alongside this as we progress,” Kyari said.

“And maybe not the right moment to make those announcements, but I know that a number of projects have been enabled by the executive order of Mr. President.

“No doubt, this project will create opportunities, jobs, and everything that you can imagine, including making our energy investment much more productive.

“I know for sure that the engagements with our other partners will ensure delivery of gas sufficient to keep our train 1 to 7 active and at full capacity, and also realise our ambitions for train 7.”

While thanking stakeholders, Kyari emphasized President Bola Tinubu’s administration’s ongoing assistance in creating a suitable operational environment, which he said is a primary driver of the transaction.

He also stated that the presidential executive order had an important role in accomplishing the milestone, adding that the policy’s influence is being felt.

TotalEnergies’ senior vice president for Africa, exploration and production, Mike Sangster, expressed satisfaction with the government’s recent incentives for non-associated gas developments, enabling the company to launch the gas project.

“Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West,” Sangster said.

“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.”

“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 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”, said Sangster.

Also speaking, Minister of State for Petroleum Resources (oil), Heineken Lokpobiri, said the president has significantly rekindled investor confidence in the oil and gas industry.

He assured Nigerians that more investments are on the way.

“One of the biggest challenges we faced on assumption is lack of investment and trust in the Nigerian policies in the last 12 years,” Lokpobiri said.

“I’m very happy to state that in the last nine month we have changed the narrative. I assure Nigerians that the good old days will be restored by creating an environment that is competitive and continues to attract investments.”

On his part, the Minister of State for Petroleum Resources (gas), Ekperikpe Ekpo, said the project is a testament to the effectiveness of the government’s policies aimed at creating a conducive environment for investment in the gas sector.

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