NNPC-TotalEnergies Joint Venture Announces Major Investment
The Nigerian energy sector continues to advance, buoyed by the Petroleum Industry Act (PIA) of 2021. Under the leadership of Mallam Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), significant strides have been made. The latest milestone is the $550 million Final Investment Decision (FID) on the Ubeta Field Development Project by the NNPC-TotalEnergies Joint Venture.
Boosting Oil and Gas Production
The Ubeta Field Development Project aims to enhance Nigeria’s oil and gas production. This investment aligns with President Bola Ahmed Tinubu’s executive orders on oil and gas reforms, which seek to improve the investment climate and make Nigeria a top destination for oil and gas sector investments. The Ubeta field, discovered in 1964, will produce approximately 350MMScf/day of gas and 10,000 BBLS/day of associated liquids, securing gas supply to the Nigeria Liquefied Natural Gas (NLNG).
Under Kyari’s leadership, NNPCL has focused on monetizing Nigeria’s vast gas resources through various projects. The Ubeta investment highlights the impact of the PIA and the supportive fiscal environment fostered by President Tinubu’s executive orders. These orders, effective from February 28, 2024, include tax incentives and directives on local content compliance, significantly boosting investor confidence.
Sustainable Development and Local Content Enhancement
The Ubeta project, a low-emission and low-cost development, leverages existing gas processing facilities. The project will further reduce carbon intensity with a 5 MW solar plant at the Obite site. TotalEnergies and NNPCL aim to enhance local content, with over 90% of man-hours worked locally. The Ubeta FID underscores NNPCL’s commitment to tackling the challenges that have deterred foreign investors in recent years.
Promoting Economic Growth and Job Creation
Impact on the Nigerian Economy
The Ubeta project promises to stimulate economic activities, create job opportunities, and add significant value for stakeholders. It will support capacity utilization, human capacity development, and offer opportunities for banking, insurance, legal, and other services. The project will prioritize in-country manufacturers with valid Nigerian Content Equipment Certificates, ensuring substantial fabrication and construction work is handled by local yards.
Energy Security for Today and Tomorrow
With Nigeria’s gas reserves exceeding 200 trillion cubic feet, the Ubeta project exemplifies strategic use of resources for sustainable development and energy security. Production is expected to start in 2027, with a daily plateau of 300 million cubic feet. Gas from Ubeta will be supplied to the NLNG plant on Bonny Island, supporting its expansion to 30 Mtpa. This investment marks a significant step in NNPCL’s mission to provide energy security for Nigeria today and in the future.
Conclusion
The €500 million investment in the Ubeta Field Project represents a major win for the NNPC-TotalEnergies Joint Venture and Nigeria’s energy sector. Under the visionary leadership of Mallam Mele Kyari, and supported by President Bola Ahmed Tinubu’s executive orders, Nigeria is poised to become a leading destination for oil and gas investments, driving economic growth and sustainable development.
Source：thisdaylive.com
