$550 Million Ubeta Field Gas Project Launched as US-Nigeria Strengthen Energy Ties

The $550 million upstream gas project between the Nigerian National Petroleum Corporation (NNPC) Limited and TotalEnergies on the development of the Ubeta Field has officially commenced, according to a statement from the Presidency on Tuesday.

The Special Adviser to the President on Energy, Olu Verheijen, revealed the development during the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department in Washington, D.C. 

This strategic dialogue is expected to deepen bilateral cooperation between the two nations on energy matters.

The Ubeta Field, discovered in 1964 and located northwest of Port Harcourt in Rivers State, is poised to deliver 350 million standard cubic feet of gas per day once fully operational. 

The official signing ceremony for the Final Investment Decision (FID) on the project took place in Abuja in June this year, according to Chief Corporate Communications Officer of NNPC Ltd., Olufemi Soneye.

At a luncheon organised as part of the dialogue, Verheijen highlighted the transformative energy reforms introduced by President Bola Ahmed Tinubu in June 2023. 

These reforms, she said, are centred on improving energy security, attracting investments, and forging stronger partnerships with key global players, including the United States.

Verheijen noted that President Tinubu’s administration had issued five new executive orders aimed at providing fiscal incentives for investors, reducing the cost and time required to finalise contracts, and expanding gas infrastructure. 

The reforms are expected to unlock up to $2.5 billion in new oil and gas investments, bolstering the country’s gas-to-power value chain and reducing carbon emissions from gas production.

Speaking on the initiatives, Verheijen emphasised the administration’s focus on improving cash flows in electricity distribution, the implementation of smart metering, and the repayment of outstanding debts to investors. These steps, she explained, are critical to strengthening Nigeria’s energy sector and its capacity to meet growing domestic and international demand.

U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, praised the dialogue, stating, 

“The inaugural 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 noted that the initiative is a significant stride towards enhancing Nigeria’s energy security and infrastructure.

The Nigerian delegation to the dialogue was led by Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), and included officials from the Ministry of Power, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, and NNPC Limited.

Representatives from the U.S. delegation included members of the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency, and the Export-Import Bank.

As Nigeria continues to focus on energy diversification and infrastructure development, the Ubeta Field project is set to play a crucial role in the country’s future gas production capacity, positioning it as a major player in the global energy market.