Journalism in the service of society

NNPCL, TotalEnergies sign $550m FID on Ubeta gas field

The Nigerian National Petroleum Corporation Ltd, and the operator of OML 58 onshore license in Nigeria with a 40 per cent interest, TotalEnergies, have signed a $550m Final Investment Decision (FID) for the development of the Ubeta gas field.

Located about 80 km northwest of Port Harcourt in Rivers state, the OML 58 licence contains two fields currently in production, the Obagi oil field and the Ibewa gas and condensate field. OML 58 gas production is processed in the Obite treatment centre and supplied to both the Nigerian domestic gas market and to Nigeria LNG (NLNG) plant.

NNPC and TotalEnergies signed the agreement on Thursday in Abuja.

Also located in OML58, the Ubeta gas condensate field will be developed with a new 6-well cluster connected to the existing Obite facilities through an 11 km buried pipeline.

Production start-up is expected in 2027, with a plateau of 300 million cubic feet per day (about 70,000 barrels of oil equivalent per day including condensates).

Gas from Ubeta will be supplied to NLNG, a liquefaction plant located in Bonny Island with an ongoing capacity expansion from 22 to 30 Mtpa, in which TotalEnergies holds a 15 per cent interest.

Ubeta is a low-emission and low-cost development, leveraging OML 58’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 is working closely with NNPCL to enhance local content, with more than 90 per cent of man-hours which will be worked locally.

Speaking at the event, Group Chief Executive Officer (GCEO) of NNPC, Mele Kyari, said on stream, the Ubeta project will produce about 350 million standard cubic feet (MMScf) per day of gas and 10,000 barrels per day of associated liquids.

This, Kyari said, is an opportunity to tap into the vast gas reserves and contribute towards securing gas supply to Nigeria’s liquified natural gas (LNG).

“I’m very convinced that many more projects will come alongside this as we progress,” Kyari said.

“And maybe not the right moment to make those announcements, but I know that a number of projects have been enabled by the executive order of Mr. President.

“No doubt, this project will create opportunities, jobs, and everything that you can imagine, including making our energy investment much more productive.

“I know for sure that the engagements with our other partners will ensure delivery of gas sufficient to keep our train 1 to 7 active and at full capacity, and also realise our ambitions for train 7.”

Comments are closed.

Naija Times