The $550 million Ubeta Upstream Gas Project, a collaboration between NNPC Ltd. and TotalEnergies, has officially commenced, as confirmed by the Presidency on Tuesday.
The announcement was made during the inaugural US-Nigeria Strategic Energy Dialogue hosted by the U.S. State Department in Washington, DC.
Special Adviser to the President on Energy, Olu Verheijen, disclosed that the project, which had its Final Investment Decision (FID) signed in June 2024, aims to develop the Ubeta field located northwest of Port Harcourt, Rivers State. Discovered in 1964, the Ubeta field will deliver 350 million standard cubic feet of gas per day once operational.
Verheijen emphasized that this upstream gas project aligns with major energy reforms spearheaded by President Bola Ahmed Tinubu. These reforms, initiated in June 2023, focus on enhancing energy security, attracting investments, and fostering stronger partnerships with nations like the United States.
According to Verheijen, these reforms include initiatives such as improving cash flows in electricity distribution through smart metering and paying outstanding debts to investors. These efforts are also aimed at reducing carbon emissions from gas production, thus improving the gas-to-power value chain in Nigeria. Additionally, President Tinubu has issued five executive orders designed to incentivize investments, streamline contract finalization processes, and support the expansion of gas infrastructure. These reforms are expected to unlock up to $2.5 billion in new oil and gas investments.
Geoffrey Pyatt, U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, praised the dialogue as a critical step toward advancing shared goals in energy security, decarbonisation, and economic growth between the U.S. and Nigeria.
The Nigerian delegation at the dialogue was led by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and included officials from key energy regulatory bodies, including NNPC Ltd. The U.S. delegation featured representatives from various agencies, including the U.S. Department of Energy, USAID, and the Export-Import Bank.
The Ubeta Gas Project is seen as a significant step toward strengthening Nigeria’s energy sector, securing its energy needs, and contributing to the country’s economic growth.
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