NNPC, TotalEnergies begin $550m Ubeta gas project

The $550 million Ubeta upstream gas project, a joint venture between the Nigerian National Petroleum Company Limited (NNPC Ltd.) and TotalEnergies, has officially commenced operations.

The announcement was made by Olu Verheijen, the Special Adviser to the President on Energy, during the inaugural U.S.-Nigeria Strategic Energy Dialogue hosted by the U.S. State Department in Washington, D.C.

The Ubeta field, discovered in 1964 and located northwest of Port Harcourt, Rivers State, is expected to deliver 350 million standard cubic feet of gas per day when fully operational.

The project’s Final Investment Decision (FID) was signed in Abuja in June 2024, marking a major milestone in Nigeria’s energy development.

Verheijen highlighted that the gas project aligns with the energy reforms introduced by President Bola Tinubu in June 2023.

These reforms aim to boost energy security, attract foreign investments, and foster stronger collaboration with international partners, particularly the United States.

“The key reforms have improved the viability of the gas-to-power value chain in Nigeria,” she said.

Among the reforms mentioned were initiatives such as smart metering, which enhances cash flows in electricity distribution, and the payment of debts owed to investors.

Verheijen also revealed that President Tinubu had issued five new executive orders to offer fiscal incentives and streamline the development of gas infrastructure projects.

These measures are expected to unlock up to $2.5 billion in new investments in the oil and gas sector.

Geoffrey Pyatt, the U.S. Assistant Secretary for the Bureau of Energy Resources, praised the dialogue, stating it paves the way for strengthened U.S.-Nigeria collaboration in energy security and economic growth.

The Nigerian delegation was led by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, with other senior officials in attendance.