TotalEnergies is advancing its strategic investments in Nigeria’s gas sector with plans to sanction a US $750M gas project, Ima, in 2024. This initiative comes on the heels of a US $500N million investment in the Ubeta onshore field, a collaboration with the Nigerian National Petroleum Company (NNPC).
Located in the OML 58 onshore licence, the Ubeta gas condensate field will feature a new six-well cluster connected to existing facilities via an 11km pipeline. Both projects are part of efforts to enhance liquefied natural gas (LNG) supplies, aligning with Nigeria’s broader goals to attract US $10bn in deep-water gas exploration investments.
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TotalEnergies’ objective
Mike Sangster, Senior Vice President for Africa at TotalEnergies, confirmed that the company plans to sanction a shallow-water dry gas project called Ima next year, which would further increase LNG supplies.
These projects underline TotalEnergies’ focus on reversing production declines, capitalizing on Nigeria’s rich natural gas reserves, and meeting growing global demand for LNG. By fostering local partnerships and leveraging Nigeria’s evolving energy policies, the company aims to strengthen its foothold in the country’s energy landscape.
“There’s still more to be done in terms of regulation, simplifying, accelerating the process, but we have appreciated some of the changes that have been made over the past year. They have given us now the incentive or the motivation to go ahead and renew our investments in Nigeria so that we can stop the decline and start to increase production,” TotalEnergies’s Sangster said.
Since May 2023, Nigerian President Bola Tinubu has introduced reforms, including tax incentives and regulatory improvements, to attract US $10bn in deep-water gas investments.
