Chevron Collaborates With NNPC In $550m Gas Production Deal

Chevron Collaborates With NNPC In $550m Gas Production Deal

TotalEnergies and the Nigerian National Petroleum Corporation (NNPC) have finalized a significant $550 million investment decision for the Ubeta gas field development. This project, situated within Nigeria’s Oil Mining Lease 58 (OML 58) onshore license, marks a pivotal move aimed at enhancing domestic gas supply and supporting exports to the Nigeria Liquefied Natural Gas (NLNG) plant.

Located approximately 80 km northwest of Port Harcourt in Rivers State, OML 58 currently hosts the Obagi oil field and the Ibewa gas and condensate field, both contributing to Nigeria’s energy landscape. The Ubeta gas field, discovered in 1964, is anticipated to yield approximately 350 million standard cubic feet per day of gas and 10,000 barrels per day of associated liquids upon commencement.

The signing ceremony, held at NNPC Towers in Abuja, celebrated the collaboration’s milestone, underscored by supportive fiscal policies from the Nigerian government. Mele Kyari, CEO of NNPC Limited, acknowledged the pivotal role of governmental support in achieving this significant development, highlighting the impact of recent executive directives.

TotalEnergies, holding a 40% interest in OML 58, views Ubeta as a strategic addition to its Nigerian portfolio, aligning with its commitment to sustainable, cost-effective projects. Mike Sangster, TotalEnergies’ Senior Vice President for Africa Exploration & Production, emphasized Ubeta’s integration into their broader strategy of advancing environmentally responsible initiatives.

The project’s execution will see the establishment of a new six-well cluster connected to existing Obite facilities via an 11km pipeline, with production slated to commence in 2027. This development aligns with Nigeria’s broader economic goals, including bolstering NLNG’s output and advancing the nation’s gas sector through innovative, emission-reducing technologies.

Government officials, including Ministers Heineken Lokpobiri and Ekperikpe Ekpo, underscored the project’s significance in revitalizing investor confidence within Nigeria’s oil and gas industry. They emphasized the project’s role in reinforcing Nigeria’s position as a pivotal player in the global energy market.

In addition to its economic impact, the Ubeta gas field development underscores TotalEnergies and NNPC’s commitment to sustainability, incorporating measures such as a forthcoming 5MW solar plant at the Obite site and electrification of drilling operations to minimize environmental impact.

Overall, the Ubeta gas field development stands as a testament to effective public-private collaboration, marking a milestone in Nigeria’s journey towards energy security and sustainable economic growth.