The presidency says the $550 million upstream gas project between the Nigerian National Petroleum Company (NNPC) Limited and TotalEnergies on the development of the Ubeta field has taken off.
Olu Verheijen, the special adviser to the president on energy, spoke during an inaugural ‘US-Nigeria Strategic Energy Dialogue,’ hosted by the US state department in Washington, district of Columbia (DC).
In June, the signing ceremony of the $550 million final investment decision (FID) on the Ubeta field development project took place in Abuja.
Speaking at the event, Verheijen said when operational, the upstream gas project would deliver 350 million standard cubic feet (SCF) of gas per day.
She added that major energy reforms introduced by President Bola Tinubu since June 2023 focused on fostering energy security, attracting investments, and deepening collaboration with key partners, including the US government.
The special adviser said the key reforms had improved the viability of the gas-to-power value chain of Nigeria.
Verheijen said the reforms included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed to investors and to reduce carbon emissions from gas production.
She added that the president issued five new executive orders to support the reform efforts, aimed at providing fiscal incentives for investment, lowering the cost and time of finalising, and implementing contracts to develop and expand gas infrastructure.
The presidential aide said the directives are intended to immediately unlock up to $2.5 billion in new oil and gas investments in the country.
Responding, Geoffrey Pyatt, the US assistant secretary of the state department, bureau of energy resources, 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 Ubeta field, which was discovered in 1964, is located northwest of Port Harcourt, Rivers state.