In a significant advancement for Nigeria’s energy sector, the $550 million Ubeta Upstream Gas Project, a collaboration between NNPC Ltd. and TotalEnergies, has officially commenced. The announcement was made by the Special Adviser to the President on Energy, Olu Verheijen, during the inaugural U.S.-Nigeria Strategic Energy Dialogue held in Washington, DC.
The Final Investment Decision (FID) for the Ubeta Field Development Project was signed in June this year in Abuja. Located northwest of Port Harcourt, Rivers State, the Ubeta field has been a known resource since its discovery in 1964.
At the luncheon marking the U.S.-Nigeria dialogue, Verheijen stated that once operational, the project is expected to deliver an impressive 350 million standard cubic feet of gas per day. This output is critical as Nigeria seeks to position itself as a major player in the global gas market, particularly amid increasing global demand for cleaner energy sources.
The Ubeta project aligns seamlessly with Nigeria’s broader strategy to harness its vast gas reserves as a transition fuel, supporting both domestic energy needs and export opportunities. As outlined in previous discussions about the nation’s energy reforms, there is a concerted effort to enhance the gas-to-power value chain. This includes initiatives to boost electricity generation through gas-fired power plants, which are seen as essential for addressing the country’s ongoing power shortages.
Moreover, the reforms under President Bola Ahmed Tinubu aim to improve energy security by attracting foreign investments and facilitating collaboration with international partners. The introduction of five executive orders designed to provide fiscal incentives for investment and streamline contract finalization is expected to unlock up to $2.5 billion in new oil and gas investments, further solidifying Nigeria’s status as a favorable investment destination in the energy sector.
U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, emphasized the significance of the dialogue, noting its role in strengthening energy collaboration between the two nations. “Together, we’re advancing shared energy security, decarbonization, and economic growth goals,” Pyatt remarked.
The involvement of TotalEnergies, a major global energy player, underscores the international interest in Nigeria’s gas sector and the potential for technological and operational synergies that can enhance project efficiency. As Nigeria continues to develop its gas infrastructure, projects like Ubeta are pivotal in achieving the country’s energy transition goals and diversifying its energy portfolio.
Leading the Nigerian delegation was Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, alongside officials from the Ministry of Power, the Nigerian Upstream Petroleum Regulatory Commission, and NNPC Ltd. The U.S. delegation included representatives from various governmental bodies, emphasizing the strategic importance of this partnership.
As Nigeria embarks on this new chapter in its gas sector, the Ubeta project is poised to play a crucial role in meeting both domestic and international energy demands, contributing to economic growth and stability.
