By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC) and TotalEnergies have officially launched a $550 million upstream gas project for the development of the Ubeta field, the Presidency revealed on Tuesday.
Special Adviser to the President on Energy, Olu Verheijen, made the announcement during the inaugural U.S.-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, D.C. The event focused on bolstering energy collaboration between the two nations.
In a statement released by NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, the signing ceremony for the Final Investment Decision (FID) on the Ubeta Field Development Project occurred in Abuja in June 2023. The Ubeta field, discovered in 1964, is situated northwest of Port Harcourt, Rivers State.
At the dialogue, Verheijen stated that the project will generate 350 million standard cubic feet of gas per day when fully operational. She also highlighted that the project is a crucial part of energy reforms initiated by President Bola Ahmed Tinubu, aimed at enhancing energy security, attracting investments, and deepening collaboration with international partners, including the U.S. government.
“These reforms have significantly improved the viability of Nigeria’s gas-to-power value chain,” Verheijen noted. She further outlined initiatives to enhance cash flows in electricity distribution, promote smart metering, clear investor debts, and reduce carbon emissions in gas production.
In a bid to encourage investment and streamline gas infrastructure development, President Tinubu has issued five executive orders to provide fiscal incentives and reduce the cost and time required for contracts. According to Verheijen, these measures are set to unlock up to $2.5 billion in new oil and gas investments.
The U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, praised the initiative, stating that the dialogue paves the way for stronger energy cooperation between Nigeria and the U.S. “Together, we’re advancing shared energy security, decarbonization, and economic growth goals,” Pyatt said.
The Nigerian delegation, led by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, included officials from the Ministry of Power, NNPC, and various regulatory bodies. Representatives from the U.S. Department of Energy, USAID, the U.S. Trade and Development Agency, and the Export-Import Bank were also in attendance.
