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FG: $550m NNPC, TotalEnergies JV Ubeta project will boost domestic gas market

The Federal Government emphasized that this development aligns with the recent Presidential Directives on Gas and reflects growing investor confidence in the Nigerian economy.

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FG: $550m NNPC, TotalEnergies JV Ubeta project will boost domestic gas market

The Federal Government has hailed the Final Investment Decision (FID) on the $550 million Ubeta gas project by the TotalEnergies EP Nigeria Limited (TEPNG) Joint Venture, comprising the Nigerian National Petroleum Company Limited (NNPCL) and TotalEnergies, as a significant economic milestone.

The project aims to extract 900 billion cubic feet of non-associated natural gas from OML 58 in Nigeria’s Niger Delta, about 85 kilometers from Port Harcourt.

The Ubeta project will produce 350 million standard cubic feet per day (scfd) of gas, primarily for Nigeria’s domestic market and to support the operational capacity of NLNG Train 7.

The Federal Government emphasized that this development aligns with the recent Presidential Directives on Gas and reflects growing investor confidence in the Nigerian economy.

Special Adviser to the President on Energy, Olu Verheijen, highlighted that 76% of Nigeria’s gas reserves remain underdeveloped, with 50% being Non-Associated Gas (NAG).

She stressed that the Ubeta project is a prime example of how recent reforms aim to attract substantial investments, emphasizing data-driven policies to reclaim Nigeria’s position as a top destination for returns on investment and ease of doing business.

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Verheijen noted that the project supports Nigeria’s overall energy policy by promoting gas sector development, reducing flaring, and encouraging cleaner energy sources. The initiative will supply gas to the domestic market and NLNG Train 7 while bringing sustainable prosperity through community economic empowerment.

Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, affirmed that President Bola Ahmed Tinubu’s initiatives have rekindled investor confidence in the oil and gas sector, promising more investments. Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, stated that the project demonstrates the effectiveness of government policies in creating a conducive investment environment.

NNPCL Group CEO, Mele Kolo Kyari, praised the collaboration with TotalEnergies and the Nigerian government, emphasizing that projects like Ubeta will ensure a steady gas supply for the domestic market and NLNG Train 7, driving economic activities during and after its completion.

TotalEnergies Senior Vice President of Africa, Exploration & Production, Mike Sangster, expressed satisfaction with the government’s incentives for non-associated gas developments, noting that the Ubeta project aligns with TotalEnergies’ strategy of developing low-cost and low-emission projects.

Located in OML58, the Ubeta gas condensate field will be developed with a new 6-well cluster connected to existing facilities through an 11km buried pipeline. Production is expected to start in 2027, with a daily output of 300 million cubic feet of gas, equivalent to 70,000 barrels of oil per day, including condensates.

Gas from Ubeta will be supplied to NLNG on Bonny Island, where capacity is being expanded from 22 to 30 million tonnes per annum (Mtpa).

The Ubeta project, leveraging existing facilities, will further reduce carbon intensity with a 5 MW solar plant and electrification of the drilling rig.

TotalEnergies and NNPC Limited are committed to enhancing local content, with over 90% of manhours worked locally, stimulating economic activities, creating jobs, and adding significant value for stakeholders.

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