The Federal Government has announced the commencement of the $550 million Ubeta gas project.
This upstream venture, a collaboration between NNPC Ltd. and TotalEnergies, marks a pivotal moment in the nation’s push for enhanced energy security and economic growth.
Olu Verheijen, Special Adviser to the President on Energy, revealed this milestone during the inaugural US-Nigeria Strategic Energy Dialogue in Washington, DC.
The announcement comes on the heels of the Final Investment Decision (FID) signing ceremony held in Abuja this June, as confirmed by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd.
The Ubeta field, discovered in 1964 and located northwest of Port Harcourt in Rivers State, is poised to become a cornerstone of Nigeria’s gas infrastructure. Verheijen highlighted the project’s ambitious target, stating, “The upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.”
This development aligns with President Bola Ahmed Tinubu’s broader energy reform agenda, implemented since June 2023.
These reforms aim to enhance energy security, attract investments, and deepen collaboration with key partners, including the US government. Verheijen elaborated on the initiatives, noting improvements in the gas-to-power value chain through smart metering and debt settlement with investors.
“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,” Verheijen explained. These directives are expected to unlock up to $2.5 billion in new oil and gas investments in Nigeria.
The US-Nigeria Strategic Energy Dialogue has been hailed as timely and strategic by Geoffrey Pyatt, U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources.
He remarked, “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, decarbonisation, and economic growth goals.”
The Nigerian delegation, led by Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo, included officials from various energy-related agencies.
The U.S. delegation comprised representatives from key departments and agencies, underscoring the importance of this bilateral engagement.
