- Tinubu hails deal, says FG determined to expand exports, create jobs
•Total Nigeria CEO declares FG’s oil reforms working - Says up to $4bn in value expected over lifetime of gas facility
•Project to produce 350 million cubic feet of gas daily
•First gas expected in 2028
Deji Elumoye and Emmanuel Addeh in Abuja
Nigeria’s 53-year wait to unlock the Ima Gas Field neared an end yesterday, following the signing of an $800 million Final Investment Decision (FID) by TotalEnergies and AMNI International, which set the stage for first gas from the long-delayed project in 2028.
The project, located in Oil Mining Lease (OML) 112 and 117, is expected to produce about 350 million standard cubic feet of gas per day, adding significantly to the country’s gas supply while creating a new stream of investment, jobs, and export opportunities.
The development marked the latest major commitment by international and indigenous energy companies to Nigeria’s upstream sector. This followed a series of regulatory and fiscal reforms introduced by the federal government to improve the investment environment in the last three years.
The Ima project is about eight kilometres off Bonny Island in Rivers State, and is expected to supply feedgas to Nigeria LNG Limited (NLNG). Discovered in 1973, it had remained undeveloped for more than five decades, despite its significant reserves and potential as a source of feedgas for Nigeria LNG Limited.
In a statement, President Bola Tinubu welcomed the FID by the French oil giant and the Nigerian independent producer, describing it as another milestone in efforts to unlock stranded gas resources and turn them into investment, jobs, industrial activity, and economic opportunities.
Tinubu stated, “For more than 50 years, the gas beneath Ima remained a resource with enormous potential, but potential alone does not create jobs, finance businesses or improve the lives of our people.
“Our responsibility has been to create the conditions that turn Nigeria’s natural resources into productive investments and economic opportunities.
“The Final Investment Decision on Ima demonstrates what is possible when we provide investors with a competitive, predictable and enabling environment. We are determined to unlock more of Nigeria’s gas resources to power our industries, expand our exports, create jobs, and build lasting prosperity for our people.”
Since assuming office on May 29, 2023, the president said he had prioritised reforms to reverse years of underinvestment in Nigeria’s oil and gas industry, as several undeveloped projects lacked the fiscal and commercial conditions needed to become viable.
In 2024, Tinubu recalled that he issued a series of presidential directives, developed by the team led by Special Adviser to the President on Energy, Olu Verheijen, which sought to improve fiscal competitiveness, shorten contracting timelines, and reduce costs.
Regarding the Ima project, THISDAY learnt that Nigerian financial institutions arranged 77 per cent of the project’s financing, with around 60 per cent of the project workforce expected to come from host communities, including Bonny, Finima, and Andoni, all in Rivers State.
“Natural resources have value only when they are converted into opportunities for our people. Our goal is to ensure that Nigeria’s gas powers Nigerian prosperity,” the president emphasised.
Delivering his welcome remarks at the FID signing ceremony, Managing Director of TotalEnergies EP Nigeria, Mathieu Bouyer, described the investment as a major vote of confidence in Nigeria’s oil and gas industry and the country’s investment environment.
Bouyer said, “The FID confirms that technically, commercially, legally and (in terms of) regulatory, we are all set and all geared to invest in a new adventure, a new project in full trust and full confidence…it’s a clear vote of confidence in Nigeria and its oil and gas industry and also in the potential of the oil and gas people of this country.”
He said the project was designed to support the additional capacity being created through Nigeria LNG’s Train 7, adding that TotalEnergies is targeting first gas by the end of 2028.
The financial partners include Zenith Bank, Access Bank, United Bank for Africa, Guaranty Trust Bank, Standard Bank, Standard Chartered Bank, and First Abu Dhabi Bank.
According to Bouyer, the project is expected to generate between $2 billion and $4 billion in value over its lifetime, depending on international oil and gas prices.
He said Nigerian content would remain central to its execution, with the four major project packages to be handled by Nigerian contractors.
He added that more than 60 per cent of work done locally would be undertaken by members of the host communities, while the project would create opportunities in employment, local contracting, and technical skills development.
The TotalEnergies chief said the project would also feature an unmanned offshore platform powered from shore, zero routine flaring, and permanent methane monitoring systems as part of efforts to reduce operational emissions.
Bouyer said the Ima investment was part of TotalEnergies’ sustained commitment to Nigeria, where the company had operated for more than 60 years.
He stressed that the reforms embarked upon by the current administration had begun to bear fruits.
Bouyer stated, “This decision also reflects the progress made in Nigeria’s investment environment. I would particularly like to recognise the leadership of His Excellency, President Bola Ahmed Tinubu, that enabled and made it possible through a number of reforms of the executive orders that were issued two years ago, and one specifically on the non-associated gas sector.
“These measures have improved the competitiveness of Nigeria’s oil and gas sector and supported the investment conditions for projects such as Ubeta that we launched two years ago, and also Ima gas that we are launching today.”
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the FID was evidence that reforms by the administration of Tinubu were restoring investor confidence in Nigeria’s oil and gas industry.
Lokpobiri recalled that Nigeria had gone for years without major investments because of concerns over regulatory and fiscal uncertainty, saying the government’s reforms have helped provide greater clarity and stability.
The minister said, “Mr. President’s reforms are working. Nigeria is now one of the most attractive investment destinations in the world.”
He commended TotalEnergies and AMNI for completing the partnership and called for faster completion of future FIDs to accelerate investment. and production.
Lokpobiri also urged Nigerian banks to continue to finance oil and gas projects, stating that hydrocarbons would remain a major component of the global energy mix for decades.
Executive Chairman of AMNI International, Tunde Afolabi, said the FID fulfilled a commitment made when the two companies signed Heads of Terms in Houston in May 2024.
Afolabi said the project demonstrated the value of trust and partnership between an indigenous Nigerian company and an international energy major.
According to him, the next phase would focus on safe execution, adherence to schedule, and project economics, environmental responsibility, host-community engagement and increased participation by Nigerian companies and professionals.
Afolabi stated, “Ima is not only a commercial development for our joint venture. Its gas will provide material feedstock to Nigeria LNG and support the additional capacity being created through Train 7… By converting discovered gas into production, export earnings, government revenue and Nigerian business activity, Ima gives practical expression to Nigeria’s gas-development ambitions.”
He stated that the FID was also enabled by deliberate action from the federal government, especially the fiscal and policy measures introduced for offshore non-associated gas, together with the engagement of the relevant regulators and agencies.
Verheijen said the Ima decision was the fourth gas FID secured in two years as part of efforts to unlock Nigeria’s stranded gas resources.
She said the government’s focus was not merely to increase gas production but to convert the country’s resources into investment, industrial activity, jobs and higher incomes.
According to her, “Our objective is not simply to produce more gas. It is to use Nigeria’s resources to power a more productive economy and improve the lives of our people.”
In his remarks, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the FID as a vote of confidence in Nigeria’s gas sector and said the project aligned with the federal government’s Decade of Gas initiative.
Ekpo said the project would support power generation, industrialisation, manufacturing, fertiliser production, petrochemicals, transportation, and clean cooking.
He said the expected first gas in 2028 would contribute to the government’s target of raising gas production to 12 billion cubic feet per day by 2030.
The minister stated, “Ima gas development project reflects the kind of strategic investment needed to translate Nigeria’s abundant natural gas resources into tangible economic value, while supporting the country’s broader aspirations for industrialisation, energy security and sustainable economic growth.”
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said the regulator would continue to remove obstacles and support investment in the sector.
NNPC Limited Executive Vice President, Udobong Ntia, who represented Group Chief Executive Officer, Bayo Ojulari, expressed the national oil company’s commitment to supporting the project towards first gas.