The $550 million Ubeta upstream gas project, a joint venture between Nigeria National Petroleum Company Limited (NNPC) and TotalEnergies, officially commenced, according to an announcement from the Nigerian Presidency on Tuesday. This milestone was highlighted during the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, DC.
Special Adviser to the President on Energy, Olu Verheijen, shared the news, noting that the project will develop the Ubeta field, which was discovered in 1964, and is located northwest of Port Harcourt, Rivers State. A Final Investment Decision (FID) for the project was signed in Abuja earlier in June.
Once operational, the gas project is expected to produce 350 million standard cubic feet of gas per day. Verheijen emphasized that President Bola Tinubu’s energy reforms, introduced since June 2023, have significantly enhanced Nigeria’s energy security, attracted new investments, and strengthened partnerships with key players, including the U.S.
Reforms include initiatives to improve cash flows in electricity distribution through smart metering, clear outstanding debts, and reduce carbon emissions from gas production. Additionally, five new executive orders have been issued to attract fiscal incentives for investment and expedite the development of gas infrastructure.
These reforms are projected to unlock up to $2.5 billion in new oil and gas investments.
Geoffrey Pyatt, U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, praised the dialogue, stating that it lays a solid foundation for future energy collaboration between the U.S. and Nigeria, advancing shared energy security, decarbonization, and economic growth goals.
Nigerian representatives at the event included the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and officials from various energy and petroleum bodies. The U.S. delegation was represented by agencies such as USAID, the Department of Energy, and the Export-Import Bank.
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