In a significant move to enhance Nigeria’s oil and gas production, NNPC and TotalEnergies have announced a $550 million Final Investment Decision (FID) on the Ubeta Field Development Project.
Discovered in 1964 and located northwest of Port Harcourt in the Niger Delta, the Ubeta field is expected to produce approximately 350 million standard cubic feet of gas per day and 10,000 barrels of associated liquids per day once operational. The project, which is set to begin production in 2027, aims to supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant and generate a lifetime revenue of $7 billion over the next 20 years.
At the signing ceremony, Group CEO of NNPC Limited, Mallam Mele Kyari, and other stakeholders praised the supportive policies of President Bola Tinubu’s administration, which have created a favorable investment climate. Kyari emphasized the impact of the Presidential Executive Order on achieving this milestone. Bala Wunti, Chief Upstream Investment Officer at NNPC, highlighted the project’s economic benefits, including boosting investor confidence and supporting NLNG Train 7. Mike Sangster, Senior Vice President Africa at TotalEnergies, noted that Ubeta aligns with the company’s strategy of developing low-cost and low-emission projects.
The Ubeta field, located in OML58, will feature a new 6-well cluster connected to existing Obite facilities through an 11km pipeline. The project aims to reduce carbon intensity with a 5 MW solar plant and electrification of the drilling rig. With over 90% of manhours to be worked locally, the project underscores a robust Nigerian Content plan, stimulating economic activities and job creation. This development aligns with President Tinubu’s executive order on oil and gas reforms, positioning Nigeria as a prime investment destination in the sector.
Source: This Day