TotalEnergies, operator of onshore oil mining licence 58 (OML 58) in Nigeria with a 40% interest, together with the Nigerian National Petroleum Corporation Ltd (NNPCL, 60%), on June 20 announced its Final Investment Decision (FID) for the development of the Ubeta gas field.

The OML 58 licence is located about 80 km northwest of Port Harcourt in Rivers state, and contains two fields currently in production, the Obagi oil field and the Ibewa gas and condensate field. The Ubeta gas condensate field is also located in OML58.

OML58 gas production is processed in the Obite treatment centre and supplied to the Nigerian domestic gas market and Nigeria LNG (NLNG) plant, the global integrated energy company said in a press statement.

The Ubeta field will be developed with a new 6-well cluster connected to the existing Obite facilities through an 11km buried pipeline. Production is expected to begin in 2027, with a plateau of 300 million cubic feet (mmcf) per day, or 8.5 million cubic metres (mcm), which is about 70,000 barrels of oil equivalent per day (boepd) including condensates.

According to TotalEnergies, gas from Ubeta will be supplied to NLNG, a liquefaction plant in Bonny Island with an ongoing capacity expansion from 22mn to 30mn tonnes per year (tpy), in which the company holds a 15% interest.

The Ubeta gas project is a low-emission and cost-effective development that utilises the existing gas processing facilities at OML58. Carbon intensity will be further minimised with the construction of a 5-MW solar plant at the Obite site and the electrification of the drilling rig. TotalEnergies is collaborating closely with NNPCL to boost local content, ensuring that over 90% of the man-hours will be contributed locally.

“Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West,” said Mike Sangster, senior vice president Africa, Exploration & Production at TotalEnergies.

“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. 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.”

TotalEnergies has been operating in Nigeria for over 60 years, currently employing more than 1,800 people across various business segments. In 2023, Nigeria was a significant contributor to TotalEnergies’ hydrocarbon production, with an output of 219,000 boepd. The company also manages an extensive distribution network, comprising around 540 service stations nationwide. TotalEnergies says it remains dedicated to the socio-economic development of Nigeria and is committed to collaborating with local communities in all its operations.