NNPC Ltd/TotalEnergies’ $550m Ubeta upstream gas project takes off

The Presidency has announced the take-off of the $550 million upstream gas project between the Nigerian National Petroleum Corporation Limited and TotalEnergies on the development of the Ubeta field.

The Special Adviser to the President on Energy, Olu Verheijen, disclosed this at an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, DC.

Speaking at a luncheon organized as part of the inaugural dialogue, Verheijen said the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.

According to a statement from Morenike Adewunmi, the Stakeholder Manager at the Office of the Special Adviser to the President on Energy, Verheijen told the gathering 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.

She 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 also aimed to immediately unlock up to $2.5 billion in new oil and gas investments in the country.

She acknowledged the financial and technical support of the US government, the World Bank, and the African Development Bank in expanding electricity access and reliability through grid and off-grid solutions.

Verheijen affirmed her optimism about the bright prospects for Nigeria’s energy sector, especially with the renewed focus on gas as a transition fuel in the race to meet the country’s commitments to the Paris climate agreement.

“We see resilient demand for gas through the energy transition, as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately,” she said.

Speaking on the dialogue, Verheijen recalled it was established in June 2023 to create a platform for the US and Nigerian governments and private sector to deepen bilateral cooperation and advance the implementation of shared energy and climate action ambitions.

“Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation, and clean cooking.

“I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue.

“The goal of this dialogue is for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power.

“We want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted and with tangible outcomes,” she said.

On his part, U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said the dialogue was apt and strategic.

“The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria.

“Together, we’re advancing shared energy security, decarbonization, and economic growth goals,” he said.

The Dialogue saw the launch of a new Nigeria-focused initiative, the Clean Energy Alliance of Nigeria, by the U.S. State Department to mobilize stakeholders to support and promote investment in clean energy in Nigeria.

The 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, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, and NNPC Limited were also in attendance.

The U.S. delegation included representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency, and the Export-Import Bank.

The signing ceremony of the 550 million USD Final Investment Decision on the Ubeta Field Development Project took place in Abuja in June.

The Ubeta field, discovered in 1964, is located northwest of Port Harcourt, Rivers State.