The Nigerian National Petroleum Corporation Limited (NNPC) and TotalEnergies have officially launched a $550 million upstream gas project to develop the Ubeta field in Rivers State.
This was revealed by the Special Adviser to the President on Energy, Olu Verheijen, during the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department in Washington, DC.
At a luncheon organised as part of the dialogue, Verheijen noted that once operational, the project would produce 350 million standard cubic feet of gas daily.
A statement released by Morenike Adewunmi, Stakeholder Manager at the Office of the Special Adviser to the President on Energy, confirmed the announcement in Abuja on Tuesday.
Verheijen highlighted that since June 2023, President Bola Tinubu has implemented major energy reforms aimed at improving energy security, attracting investments, and fostering deeper collaboration with key partners such as the US government.
She emphasised that these reforms have strengthened Nigeria’s gas-to-power value chain, incorporating initiatives like smart metering to improve cash flow in electricity distribution and resolving outstanding debts to investors. The reforms also prioritise reducing carbon emissions from gas production.
To further enhance these efforts, the President issued five new executive orders providing fiscal incentives for investment and streamlining contract processes to accelerate the development of gas infrastructure.
These directives are expected to unlock up to $2.5 billion in new oil and gas investments.
Verheijen also acknowledged the critical support of financing and technical partners, including the US government, the World Bank, and the African Development Bank, in improving electricity access and reliability through grid and off-grid solutions.
She expressed optimism about the future of Nigeria’s energy sector, particularly with the increasing focus on gas as a transition fuel to help meet the country’s Paris climate agreement commitments.
“We see resilient demand for gas through the energy transition as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately,” she said.
Verheijen recalled it was established in June 2023 to offer a modality for the US, 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.
“I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue.
“The goal of this dialogue for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power.
“We want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted, and with tangible outcomes,” she said.
The US Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said the dialogue was strategic and timely.
“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 new Nigeria-focused initiative, the Clean Energy Alliance of Nigeria was launched 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
Petroleumprice understands the signing ceremony of the $550 million Final Investment Decision on the Ubeta Field Development Project held in Abuja in June.
Discovered in 1964, the Ubeta field is located in Port Harcourt, Rivers State.
