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UBETA DEAL: NNPC, TotalEnergies sign final investment decision on $550m today

UBETA DEAL: NNPC, TotalEnergies sign final investment decision on $550m today

The Nigerian National Petroleum Company (NNPC) Limited and TotalEnergies will on Thursday, sign the final investment decision (FID) for the Ubeta Field Development Project.

An event schedule indicates that TotalEnergies and its senior partner, NNPCL will be signing the UBETA FID in Abuja on June 20.

The FID on the Ubeta deal is expected to have a significant impact on Nigeria’s energy sector, and it marks a major step forward in the country’s efforts to develop its oil and gas resources,

Utilising the provisions of the Petroleum Industry Act (PIA) 2021, the decade of gas initiatives, and executive orders issued in March 2024, the source stated that TotalEnergies is committed to investing in the Ubeta Field Development Project to unlock 350 million standard cubic feet per day (MMSCF/D).

READ ALSO: World Bank exposes NNPCL’s dishonesty on petrol subsidy, dollar revenues

Upon becoming operational, the source noted that the Ubeta project will yield 10,000 barrels per day (bpd) of associated liquids.

The project is anticipated to tap into extensive gas reserves and contribute to securing the gas supply for Nigeria LNG.

The Ubeta deal involves the development of a dedicated upstream facility to supply 100 million standard cubic feet of gas per day to Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State, for 10 years.

This project is expected to create jobs and stimulate economic growth in Nigeria.

The FID is seen as a major step forward in Nigeria’s Decade of Gas initiative, which aims to increase the delivery of natural gas to the domestic market and accelerate industrialisation and economic development.

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