Washington, DC — The Nigerian Presidency has announced the commencement of a significant $550 million upstream gas project in collaboration with TotalEnergies, focused on the development of the Ubeta field. The announcement was made by Olu Verheijen, Special Adviser to the President on Energy, during the inaugural US-Nigeria Strategic Energy Dialogue hosted by the US State Department on Tuesday.
Verheijen, addressing attendees at a luncheon during the dialogue, revealed that the Ubeta project, once operational, is expected to deliver 350 million standard cubic feet of gas per day. This initiative marks a key development in Nigeria’s energy sector, reflecting ongoing reforms aimed at enhancing energy security and attracting international investments.
A statement from the Stakeholder Manager in the Office of the Special Adviser to the President on Energy, Morenike Adewunmi, provided further details on the event and the project’s expected impact. The reforms introduced by President Bola Tinubu since June 2023 include initiatives to boost the gas-to-power value chain and reduce carbon emissions. These efforts are designed to improve cash flows in electricity distribution through smart metering and address outstanding debts owed to investors.
Verheijen highlighted that the President’s administration has issued five new executive orders to provide fiscal incentives, reduce contract finalization times, and unlock up to $2.5 billion in new oil and gas investments. The initiative aligns with Nigeria’s commitment to the Paris climate agreement by leveraging gas as a transitional fuel to complement renewable energy sources.
The U.S. State Department’s Geoffrey Pyatt, Assistant Secretary of the Bureau of Energy Resources, endorsed the dialogue, stating that it sets the stage for enhanced energy cooperation between the U.S. and Nigeria. The dialogue aims to address energy access issues for the nearly 100 million Nigerians lacking reliable power and to foster investment in clean energy.
In conjunction with the dialogue, the U.S. State Department launched the Clean Energy Alliance of Nigeria, an initiative to promote investment in clean energy within the country.
The Nigerian delegation at the event was led by Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), and included officials from various regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The Ubeta field, located northwest of Port Harcourt, Rivers State, was first discovered in 1964. The $550 million investment signifies a major step in developing Nigeria’s gas infrastructure and enhancing the country’s energy capabilities.
