The 550 million dollars upstream gas project between the Nigerian National Petroleum Company Limited (NNPC Ltd.) and TotalEnergies on the development of the Ubeta field has commenced operations, the Presidency announced on Tuesday, September 17, 2024.
The Special Adviser to the President on Energy, Olu Verheijen disclosed this during an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department, in Washington, DC.
Recall that the signing ceremony of the 550 million dollar Final Investment Decision (FID) on the Ubeta Field Development Project took place in Abuja in June 2024.
The Ubeta field, which was discovered in 1964, is located northwest of Port Harcourt, Rivers State.
In a statement by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., Mrs Verheijen said the upstream gas project would deliver 350 million standard cubic feet of gas per day when fully operational.
Mrs Verheijen added that major energy reforms introduced by President Bola Tinubu since June 2023 focused on improving energy security,
attracting investments and deepening collaboration with key partners,including the United States government.
She said the key reforms had improved the viability of the gas-to-power value chain of the country.
She also listed the reforms to include the initiatives to improve cash flows in electricity distribution, through smart metering and the payment of outstanding debts owed investors as well as to reduce carbon emissions from gas production.
According to Mrs Verheijen, the President issued five new executive orders aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.
The presidential aide said the directives would
unlock up to 2.5 billion dollars in new oil and gas investments in the country.
Responding, the US Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said the dialogue was apt and strategic.
“The inaugural US-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,” he said.
In addition, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, led the Nigerian delegation to the event.
Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board and NNPC Limited were also in attendance.
The US delegation included representatives from the Bureau of African Affairs, USAID, the US Department of Energy, the US Trade and Development Agency and the Export-Import Bank.
