The Nigerian National Petroleum Corporation Ltd (NNPC) and TotalEnergies have signed a $550 million Final Investment Decision (FID) for the development of the Ubeta gas field.
This significant milestone aims to bolster Nigeria’s gas production capacity and secure gas supply to the Nigerian domestic market and Nigeria LNG (NLNG) plant.
Located approximately 80 km northwest of Port Harcourt in Rivers State, the OML 58 onshore license includes the Ubeta gas condensate field, set to be developed with a new 6-well cluster. This cluster will connect to existing facilities at the Obite treatment center through an 11 km buried pipeline. The OML 58 license also houses the Obagi oil field and the Ibewa gas and condensate field, currently in production.
The NNPC and TotalEnergies agreement, signed on Thursday in Abuja, marks a significant step forward in Nigeria’s energy sector. Production start-up for the Ubeta field is anticipated in 2027, with a plateau production of 300 million cubic feet per day (approximately 70,000 barrels of oil equivalent per day, including condensates). Gas from Ubeta will be supplied to the NLNG plant in Bonny Island, which is undergoing a capacity expansion from 22 to 30 Mtpa. TotalEnergies holds a 15 percent interest in this plant.
The Ubeta project is distinguished by its low-emission and low-cost development strategy, leveraging existing gas processing facilities at OML 58. The project’s carbon intensity will be further reduced through a 5 MW solar plant currently under construction at the Obite site and the electrification of the drilling rig. TotalEnergies is committed to enhancing local content, with over 90 percent of man-hours worked locally.
Group Chief Executive Officer (GCEO) of NNPC, Mele Kyari, highlighted the project’s potential to produce about 350 million standard cubic feet (MMScf) per day of gas and 10,000 barrels per day of associated liquids. Kyari expressed confidence in the project’s contribution to securing gas supply for Nigeria’s LNG needs and driving economic growth.
“I’m very convinced that many more projects will come alongside this as we progress,” Kyari said. “No doubt, this project will create opportunities, jobs, and everything that you can imagine, including making our energy investment much more productive.”
Kyari also appreciated the support from stakeholders and emphasized the role of President Bola Tinubu’s administration in facilitating a conducive operational environment, which has been a major driver of the deal. He acknowledged the presidential executive order’s instrumental role in achieving this milestone and its visible impact on the sector.
Mike Sangster, Senior Vice President Africa, Exploration and Production, TotalEnergies, expressed satisfaction with launching the Ubeta project, which aligns with the company’s strategy of developing low-cost and low-emission projects. “Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West,” Sangster said. “I am pleased that we can launch this new gas project which has been made possible by the Government’s recent incentives for non-associated gas developments.”
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, commended President Tinubu for rekindling investor confidence in Nigeria’s oil and gas industry, ensuring that more investments are on the horizon.
“I assure Nigerians that the good old days will be restored by creating an environment that is competitive and continues to attract investments,” Lokpobiri said.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, added that the Ubeta project testifies to the government’s effective policies aimed at fostering a conducive environment for investment in the gas sector.
