Bola Tinubu
Sept. 17, 2024
The Presidency has announced the take-off of the 550 million US Dollar upstream gas project between the Nigerian National Petroleum Corporation Ltd. (NNPCL) and TotalEnergies on development of Ubeta field.
Special Adviser (SA) to President Bola Tinubu on Energy, Olu Verheijen disclosed this at an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department, in Washington, DC.
Speaking at a luncheon organised as part of the inaugural dialogue, Verheijen said the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.
A statement on the event signed by Morenike Adewunmi, Stakeholder Manager, Office of the Special Adviser to the President on Energy, was made available to the News Agency of Nigeria (NAN) in Abuja on Tuesday.
Verheijen told the gathering that major energy reforms introduced by President Bola Tinubu since June 2023 focused on improving energy security, attracting investments and deepening collaboration with key partners including the the US government.
She said the key reforms had improved the viability of the gas-to-power value chain of the country
The reforms according to her, included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors, and to reduce carbon emissions from gas production.
She added that, to support the reform efforts, the President issued five new executive orders aimed at providing fiscal incentives for investment.and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.
The presidential aide said the directives also aimed to immediately unlock up to 2.5 billion dollard in new oil and gas investments in the country.
She acknowledged the support of financing and technical partners like the US government, the World Bank and the African Development Bank towards expanding electricity access and reliability through grid and off-grid solutions.
Verheijen affirmed her optimism about the bright prospects for Nigeria’s energy sector, especially with the renewed focus on gas as a transition fuel in the race to meet the country’s commitments to the Paris climate agreement.
“We see resilient demand for gas through the energy transition as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately,” she said.
Speaking on the Dialogue, Verheijen recalled it was established in June 2023 to create a platform for the US and Nigerian governments and private sector to deepen bilateral cooperation and advance the implementation of shared energy and climate action ambitions.
“Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation and clean cooking.
“I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue.
“The goal of this dialogue for us to jointly proffer solutions that will close the energy access gap for close to 100 million Nigerians who still lack reliable power.
“We want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted, and with tangible outcomes,” she said..
On his part, Geoffrey Pyatt, US Assistant Secretary of the State Department’s Bureau of Energy Resources said the dialogue was apt and strategic.
“The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria.
“Together, we’re advancing shared energy security, decarbonization, and economic growth goals,” he said.
The Dialogue saw the launch of a new Nigeria-focused initiative, the Clean Energy Alliance of Nigeria (CLEAN), by the U.S. State Department, to mobilise stakeholders to support and promote investment in clean energy in Nigeria.
The Nigerian delegation to the event was led by the Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo.
Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, NNPC Limited, were also in attendance.
The signing ceremony of the 550 million USD Final Investment Decision (FID) on the Ubeta Field Development Project took place in Abuja in June
The Ubeta field, discovered in 1964 is located Northwest of Port Harcourt, Rivers state. (NAN)
