The Nigerian National Petroleum Company Ltd, NNPCL, has kicked off the $550m upstream gas project which it signed with TotalEnergies on the development of the Ubeta field.
The Special Adviser to the President on Energy, Olu Verheijen disclosed this at an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department, in Washington, DC, noting that the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.
Verheijen told the gathering that major energy reforms introduced by President Bola Tinubu since June 2023 focused on improving energy security, attracting investments, and deepening collaboration with key partners including the US government.
The deal highlights the benefits of the oil sector reforms introduced by President Tinubu which is aimed at unlocking investments in the sector
She said the key reforms had improved the viability of the gas-to-power value chain of the country
The reforms, according to her, included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors and to reduce carbon emissions from gas production.
She added that to support the reform efforts, the President issued five new executive orders aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.
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The presidential aide said the directives also aimed to immediately unlock up to $2.5bn in new oil and gas investments in the country.
She acknowledged the support of financing and technical partners like the US government, the World Bank, and the African Development Bank towards expanding electricity access and reliability through grid and off-grid solutions.
Verheijen affirmed her optimism about the bright prospects for Nigeria’s energy sector, especially with the renewed focus on gas as a transition fuel in the race to meet the country’s commitments to the Paris climate agreement.
He recalled it was established in June 2023 to create a platform for the US and Nigerian governments and private sector to deepen bilateral cooperation and advance the implementation of shared energy and climate action ambitions.
“Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation and clean cooking.
The US Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt said the dialogue was apt and strategic.
“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 said.
The Dialogue saw the launch of a new Nigeria-focused initiative, the Clean Energy Alliance of Nigeria, by the U.S. State Department, to mobilise stakeholders to support and promote investment in clean energy in Nigeria.
The Nigerian delegation to the event was led by the Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.
Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, NNPC Limited, were also in attendance.
The US delegation included representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency, and the Export-Import Bank.
In June 2024, the NNPCL announced a final investment decision for the project saying that aside from the 550MMScf/day of gas, the project will deliver 0,000 BBLS/day of associated liquids.
The Ubeta field was discovered in 1964, North-West of Port Harcourt in the eastern part of the Niger Delta.
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