…targets 350 MMScf of gas, 10,000bpd of crude oil, condensates
… production start-up in 2027
… Kyari, Sangster say Ubeta field dev’t project launch was enabled by Tinubu’s Executive Order
Oredola Adeola
The Nigerian National Petroleum Company Limited-TotalEnergies JV has signed a $550 million investment in the Ubeta Gas Condensate Field Development Project in OML58, with production start-up expected in 2027 and a projected output of 350 million standard cubic feet (MMScf) of gas and 10,000 barrels of crude oil and condensates per day.
Olufemi Soneye, NNPC Ltd., Chief Corporate Communications Officer, made this known in a statement obtained by Advisors Reports on Thursday.
The milestone is in line with President Bola Ahmed Tinubu’s Presidential Executive Order on Oil & Gas Reforms aimed largely at improving the investment climate and positioning Nigeria as the preferred investment destination for the Oil & Gas sector in Africa.
According to the statement, the Ubeta field discovered in 1964, North-West of Port Harcourt in the eastern part of the Niger Delta will, once on stream, will produce about 350MMScf/day of gas and 10,000 BBLS/day of associated liquids, tapping into the vast gas reserves and contributing towards securing gas supply to Nigeria Liquefied Natural Gas (NLNG) Limited.
Mallam Mele Kyari, Group Chief Executive Officer, NNPC Limited, in his remark at the signing ceremony held at the NNPC Towers, appreciated the support from stakeholders.
He also highlighted the continuous support of President Bola Tinubu’s administration in facilitating a conducive operational environment as a major enabler in achieving this success.
“We appreciate Mr. President for supporting us with the appropriate fiscal environment. The Presidential Executive Order is instrumental to us getting to this significant milestone, and we are now seeing the impact of the policy,” Kyari added.
Mike Sangster, Senior Vice President Africa, Exploration & Production, TotalEnergies, also in his remark said “Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West.
He confirmed that the launch of the new gas project was made possible by the Government’s recent incentives for non-associated gas developments.
He emphasised that Ubeta fits perfectly with TotalEnergies’ strategy of developing low-cost and low-emission projects and will contribute to the Nigerian economy through higher NLNG exports.
Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), in his comment, said President Tinubu has significantly rekindled investor confidence in the oil and gas industry, assuring Nigerians that more investments are on the way.
Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), said the project is a testament to the effectiveness of the Government’s policies aimed at creating a conducive environment for investment in the gas sector.
The NNPCL in the statement further revealed that the Ubeta gas condensate field will be developed with a new 6-well cluster connected to the existing Obite facilities through an 11km buried pipeline.
The statement confirmed that production start-up is expected in 2027, with a plateau of 300 million cubic feet per day.
Advisors Reports gathered that the gas from Ubeta will be supplied to Nigeria LNG’s liquefaction plant located in Bonny Island, with an ongoing capacity expansion from 22 to 30 Mtpa, in which NNPC Limited holds a 49% interest.
Ubeta is a low-emission and low-cost development, leveraging OML58’s existing gas processing facilities.
The carbon intensity of the project will be further reduced through a 5 MW solar plant currently under construction at the Obite site and the electrification of the drilling rig.
TotalEnergies assured that it is working closely with NNPC Limited to enhance local content, with more than 90% of manhours which will be worked locally.
NNPC Limited stated that the Ubeta FID demonstrates the success of its dedicated efforts, with strong Executive support, to address and resolve the issues that have diminished the attractiveness of the Nigerian oil and gas industry to foreign investors in recent years.
The company noted that the Ubeta project has a robust Nigerian Content plan and is poised to stimulate economic activities, create job opportunities, and create significant value for stakeholders.
