• Thursday, July 18, 2024
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NNPC, TotalEnergies near $550m Ubeta deal

… project to yield 10,000bpd

The Nigerian National Petroleum Company (NNPC) Limited and TotalEnergies are preparing to finalise the final investment decision (FID) for the Ubeta Field Development Project on June 21.

According to a report from Reuters, a source familiar with the situation indicated that this step is pivotal in enhancing Nigeria’s domestic gas supply and economic growth.

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: NNPC withdraws suits against ExxonMobil on $1.28bn asset divestment to Seplat

The NNPC-TotalEnergies joint venture aims to announce a $550 million FID for the Ubeta project on June 21.

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 FID underscores the efforts invested by NNPC Limited, with unwavering executive support, to address the challenges that have hindered the attractiveness of the Nigerian oil and gas industry to foreign investors in recent years,” the source said.

According to the source, the Ubeta FID also highlights President Bola Tinubu’s commitment

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