TotalEnergies, NNPCL Make $550MM FID on Ubeta Field Project

TotalEnergies SE and Nigerian National Petroleum Corporation Ltd (NNPCL) have made a $550 million final investment decision (FID) on the Ubeta Field Development Project in Nigeria. 

The Ubeta gas field is owned by NNPCL with a 60 percent interest, while TotalEnergies owns 40 percent interest as operator of Oil Mining Lease OML 58 onshore license in Nigeria.

The OML 58 license contains two fields currently in production: the Obagi oil field and the Ibewa gas and condensate field. It is located about 49.7 miles (80 kilometers) northwest of Port Harcourt in Rivers state. The OML 58 gas production is processed in the Obite treatment center and supplied to the Nigerian domestic gas market and to the Nigeria LNG (NLNG) plant, TotalEnergies said in a news release.

The Ubeta gas condensate field located in OML58 will be developed with a new six-well cluster connected to the existing Obite facilities through a buried pipeline. The asset has a plateau of 300 million cubic feet per day, or about 70,000 barrels of oil equivalent per day including condensates, and the start of production is expected in 2027, TotalEnergies noted.

NLNG, a liquefaction plant located on Bonny Island, will receive gas supply from Ubeta. The plant has an ongoing capacity expansion from 22 million to 30 million tons per annum (mtpa). TotalEnergies holds a 15 percent interest in NLNG, the release stated.

“Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West. I am pleased that we can launch this new gas project which has been made possible by the government’s recent incentives for non-associated gas developments,” TotalEnergies Senior Vice President Africa for Exploration and Production Mike Sangster said.

“Ubeta fits perfectly with our strategy of developing low-cost and low-emission projects, and will contribute to the Nigerian economy through higher NLNG exports,” Sangster added.

In a separate news release, NNCPCL said the milestone is in line with President Bola Ahmed Tinubu’s Presidential Executive Order on Oil & Gas Reforms aimed at improving the investment climate. It also positions Nigeria as the “preferred investment destination” for the oil and gas sector in Africa, the company said.

“We appreciate Mr. President for supporting us with the appropriate fiscal environment. The Presidential Executive Order is instrumental to us getting to this significant milestone and we are now seeing the impact of the policy,” NNPC Limited Group Chief Executive Officer Mallam Mele Kyari remarked.

Leveraging existing gas processing facilities in OML58, Ubeta is a low-emission and low-cost development. The carbon intensity of the project will be further reduced by utilizing a five-megawatt solar plant currently under construction at the Obite site, as well as the electrification of the drilling rig.

Having been present in Nigeria for more than 60 years, TotalEnergies employs more than 1,800 people across different business segments. Nigeria is one of the main contributing countries to TotalEnergies’ hydrocarbon production with 219,000 barrels of oil equivalent per day (boepd) produced in 2023, the company said.

TotalEnergies describes itself as a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity.

Source: www.rigzone.com