The Federal Government yesterday disclosed that the $550 million upstream gas project between the NNPC Ltd and TotalEnergies on the development of the Ubeta field has taken off with a target of reaching 350 million standard cubic feet (mscf) of gas per day when fully operational.
A statement by the Chief Corporate Communications Officer, NNPC Limited, Mr Olufemi Soneye, in Abuja said the Special Adviser to the President on Energy, Olu Verheijen, disclosed this during an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, DC.
Recall that the signing ceremony of the 550 million USD Final Investment Decision on the Ubeta Field Development Project took place in Abuja in June, this year. The Ubeta field, which was discovered in 1964, is located northwest of Port Harcourt, Rivers State.
Verheijen explained that major energy reforms introduced by President Bola Ahmed Tinubu since June 2023 focused on improving energy security, attracting investments, and deepening collaboration with key partners, including the US government.
According to her, the key reforms has improved the viability of the gas-to-power value chain of the country.
The reforms include initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors and to reduce carbon emissions from gas production.
She added that the President issued five new executive orders to support the reform efforts, 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 are aimed to immediately unlock up to $2.5 billion in new oil and gas investments in the country”, Soneye stated.
Also speaking, the U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said the dialogue was apt and strategic.
U.S.-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.