NNPCL, TotalEnergies Sign $550m Investment Deal for Ubeta Field Project
The Nigerian National Petroleum Company Limited (NNPCL) and TotalEnergies JV have announced a $550 million final investment decision for the Ubeta Field Development Project.
On Thursday, the duo signed the deal which is expected to yield revenue above $ 7 billion over 20 years.
The Ubeta Field Development Project aims to unlock 350 million standard cubic feet per day (MMSCF/D).
Speaking during the signing ceremony in Abuja on Thursday, Mele Kyari, the Group chief executive officer of the NNPCL said that the project was made possible due to the fiscal environment put in place by Tinubu-led administration.
He explained that the executive order on reduction of processes around contracting has allowed new fiscal terms for non-associated gas, and ‘sorting out’ issues associated with local content development.
“I’m very convinced that many more projects will come alongside this as we progress. And maybe not the right moment to make those announcements, but I know that a number of projects have been enabled by the executive order of Mr. President,” Kyari said.
“No doubt, this project will create opportunities, jobs, and everything that you can imagine, including making our energy investment much more productive. I know for sure that the engagements with our other partners will ensure delivery of gas sufficient to keep our train 1 to 7 active and at full capacity, and also realize our ambitions for train 7.”
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, praised President Tinubu for rekindling investor confidence in the oil and gas industry, assuring that more investments are forthcoming.
Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated that the project demonstrates the effectiveness of government policies in fostering a conducive environment for investment in the gas sector.
“The Ubeta gas condensate field, located in OML58, will feature a new 6-well cluster connected to the existing Obite facilities via an 11km buried pipeline. Production is expected to start in 2027, with a peak output of 300 million cubic feet per day (about 70,000 barrels of oil equivalent per day, including condensates). Gas from Ubeta will be supplied to NLNG, a liquefaction plant on Bonny Island, which is expanding its capacity from 22 to 30 Mtpa, with NNPC Limited holding a 49% interest.
“Ubeta is a low-emission and low-cost project, leveraging existing gas processing facilities in OML58. The carbon intensity of the project will be further reduced through a 5 MW solar plant under construction at the Obite site and the electrification of the drilling rig. TotalEnergies is collaborating with NNPC Limited to enhance local content, with over 90% of man-hours expected to be worked locally.
“The Ubeta FID reflects NNPC Limited’s commitment, with strong executive support, to address the challenges that have hindered the attractiveness of Nigeria’s oil and gas industry to foreign investors in recent years”, NNPC quoted in the statement.
