The Presidency has announced the take off of the $550 million upstream gas project between the Nigerian National Petroleum Company Limited (NNPCL) and TotalEnergies on the development of the Ubeta Field.
Special Adviser to the President on Energy, Olu Verheijen, disclosed this during the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department in Washington, DC, on Tuesday.
This was contained in a press release by the NNPCL Chief Corporate Communications Officer, Olufemi Soneye.
The signing ceremony of the $550 million Final Investment Decision (FID) on the Ubeta Field Development Project took place in Abuja in June, this year.
The Ubeta Field, which was discovered in 1964, is located north-west of Port Harcourt in Rivers State.
Speaking at a luncheon organised as part of the inaugural US-Nigeria Strategic Energy Dialogue, Verheijen said the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.
She added that major energy reforms introduced by President Bola Tinubu since June 2023 focused on improving energy security, attracting investments and deepening collaboration with key partners, including the US Government.
Verheijen said the key reforms had improved the viability of the gas-to-power value chain of the country.
The reforms, according to her, included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors and to reduce carbon emissions from gas production.
She added that the president issued five new executive orders to support the reform efforts, aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.
The presidential aide said the directives were aimed at immediately unlocking up to $2.5 billion in new oil and gas investments in the country.
Responding, the US Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said the dialogue was apt and strategic.
“The inaugural US-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria.
“Together, we are advancing shared energy security, decarbonisation, and economic growth goals,” Pyatt added.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, led the Nigerian delegation to the event.
Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian Content Development and Monitoring Board (NCDMB) and NNPCL were also in attendance.
The US delegation included representatives from the Bureau of African Affairs, USAID, the US Department of Energy, the US Trade and Development Agency, and the Export-Import Bank, it was stated in the release.
