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The NNPC-TotalEnergies JV has made a final investment decision of $550 million for the Ubeta Field Development Project, in a bid to boost the oil and gas production in Nigeria.
This achievement, as stated by NNPC, is in line with President Bola Tinubu’s Presidential Executive Order on Oil and Gas Reforms, aimed at enhancing the investment climate and positioning Nigeria as the top investment destination for the oil and gas sector in Africa.
Discovered in 1964, the Ubeta field, situated northwest of Port Harcourt in the eastern Niger Delta, is expected to yield approximately 350 million standard cubic feet per day (MMScf/d) of gas and 10,000 barrels per day (BBLS/d) of associated liquids.
This project will tap into Nigeria’s extensive gas reserves and support gas supply to Nigeria Liquefied Natural Gas Limited.
In a statement released by NNPC Ltd.’s Chief Corporate Communications Officer, Olufemi Soneye, the Group Chief Executive Officer of NNPC, Mallam Mele Kyari, expressed appreciation for stakeholder support and emphasized the role of President Bola Tinubu’s administration in creating a favorable operational environment on Thursday.
"We are grateful to the President for providing the necessary financial support, which has been crucial in reaching this significant milestone. The Presidential Executive Order has had a positive impact on our operations," stated Kyari.
Mike Sangster, Senior Vice President Africa, Exploration & Production at TotalEnergies, added, "Ubeta is the most recent project developed by TotalEnergies in Nigeria, following Ikike and Akpo West. We are delighted to launch this new gas project, made possible by the recent government incentives for non-associated gas developments. Ubeta aligns with our strategy of developing cost-effective and environmentally friendly projects, and will contribute to the Nigerian economy through increased NLNG exports."
Senator Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), commended President Tinubu for restoring investor confidence in the oil and gas industry, and assured that more investments are on the way.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized that the Ubeta project showcases the effectiveness of government policies in creating an attractive environment for investment in the gas sector.
The Ubeta gas condensate field, situated in OML58, will include a new 6-well cluster connected to the existing Obite facilities via an 11km buried pipeline. Production is set to commence in 2027, with a peak output of 300 million cubic feet per day (equivalent to about 70,000 barrels of oil per day, including condensates). The gas from Ubeta will be supplied to NLNG, a liquefaction plant on Bonny Island, which is expanding its capacity from 22 to 30 Mtpa, with NNPC Limited holding a 49% interest.
Ubeta is an environmentally friendly and cost-effective project, utilizing existing gas processing facilities in OML58. The project's carbon footprint will be further reduced through the construction of a 5 MW solar plant at the Obite site and the electrification of the drilling rig. TotalEnergies is collaborating on this initiative.
