The Ubeta upstream gas project, situated northwest of Port Harcourt in Nigeria, is on track to produce 350 million cubic feet of natural gas per day by 2027. This output will equate to approximately 3.6 billion cubic meters on an annual basis. The project is designed to supply the Nigeria LNG (NLNG) plant on Bonny Island, which is in the process of increasing its liquefaction capacity from 22 million to 30 million tons per year.
The Ubeta field is part of the OML 58 onshore license, which is operated by TotalEnergies and also encompasses the Obagi oil field and the Ibewa gas and condensate field. The license is a joint venture, with the Nigerian National Petroleum Corporation (NNPC) holding a 60% stake and TotalEnergies the remaining 40%.
Aligning with National Energy Reforms
This initiative is in line with the energy reforms introduced by Nigerian President Bola Ahmed Tinubu since June 2023. The reforms are aimed at bolstering energy security, attracting foreign investments, and fortifying the gas-to-power value chain. They also emphasize initiatives to enhance cash flow in electricity distribution, promote the use of smart meters, and decrease carbon emissions from gas production.
Unlocking Significant Investment Potential
The development of the Ubeta field is anticipated to catalyze substantial investment, with the potential to reach up to $2.5 billion in new ventures within the oil and gas sector. The project was a key point of discussion during the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the U.S. State Department. The dialogue underscored the shared objectives of both nations in the realms of energy security, decarbonization, and economic growth.
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