OML58: NNPC Ltd, TotalEnergies announce $550m investment deal on Ubeta project
By Esther Agbo and Opeyemi Abdulsalam
The Nigerian National Petroleum Company (NNPC) Limited signed an agreement with TotalEnergies for the final investment decision (FID) on the Ubeta Field Development Project.
The memorandum of understanding (MoU) was signed on Thursday in Abuja.
This project is expected to have a significant impact on Nigeria’s energy sector and contribute to the country’s efforts to develop its oil and gas resources.
Speaking at the event, Mele Kyari, group chief executive officer (GCEO) of NNPC, said on stream, the Ubeta project will produce about 350 million standard cubic feet (MMScf) per day of gas and 10,000 barrels per day of associated liquids.
This, Kyari said, is an opportunity to tap into the vast gas reserves and contribute towards securing gas supply to Nigeria’s liquified natural gas (LNG).
Kyari said, “I’m very convinced that many more projects will come alongside this as we progress.”
“And maybe not the right moment to make those announcements, but I know that a number of projects have been enabled by the executive order of Mr. President.
“No doubt, this project will create opportunities, jobs, and everything that you can imagine, including making our energy investment much more productive.
“I know for sure that the engagements with our other partners will ensure delivery of gas sufficient to keep our train 1 to 7 active and at full capacity, and also realise our ambitions for train 7.”
While appreciating the support from stakeholders, Kyari highlighted the continuous support of President Bola Tinubu’s administration in facilitating a conducive operational environment, which he said is a major driver of the deal.
He also said the presidential executive order was instrumental to achieving the milestone and the impact of the policy is being seen.
Also speaking at the event the Honourable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, delivered a keynote address at the Final Investment Decision (FID) Ceremony for the OML58 Ubeta Field Development Project.
The Ubeta Project is projected to produce 350 million standard cubic feet per day (MMScf/d) of gas at its peak. This initiative is a testament to TotalEnergies’ commitment to Nigeria and plays a crucial role in ensuring a stable gas supply for Nigeria LNG.
Minister Ekpo emphasised the project’s alignment with President Bola Ahmed Tinubu’s strategic objectives and the Presidential Executive Orders of March 2024. These directives aim to transform Nigeria into a major gas hub, providing cleaner energy, creating jobs, and fostering economic growth.
The Decade of Gas Initiative has laid the groundwork for ambitious projects like Ubeta, focusing on leveraging Nigeria’s abundant gas resources to drive industrialisation, reduce environmental impact, and offer affordable energy to millions of Nigerians.
The Ubeta Field Development Project is a prime example of investments that bring technological advancements, foster local content, and generate sustainable economic benefits.
Minister Ekpo commended TotalEnergies for their continued partnership and investment in Nigeria, acknowledging their role in boosting gas production capabilities.
He said, “I want to take this opportunity to commend TotalEnergies for their continued partnership and investment in Nigeria. Your efforts not only boost our gas production capabilities but also contribute to our shared goals of energy security and economic prosperity.
“We value your commitment to employing innovative technologies and practices that ensure the efficiency and safety of your operations.”
He also highlighted the effectiveness of Nigeria’s policies in creating a conducive environment for investment in the gas sector, attributing the project’s fruition to supportive government policies and regulatory frameworks.
Looking ahead, Minister Ekpo urged for continued collaboration to harness Nigeria’s vast gas potential.
He stressed that the success of the Ubeta Project would be measured not only by gas production volumes but also by its positive impact on the economy, communities, and environment.
In conclusion, Minister Ekpo congratulated all contributors to the project, praising their dedication and hard work.
He called for ongoing cooperation to ensure the successful implementation and operation of the Ubeta Field Development Project, setting a benchmark for future projects in Nigeria’s gas sector.
The event concluded with a call for continued efforts to leverage Nigeria’s gas resources for the nation’s economic and environmental benefit.
