Ubeta gas project: Nigeria’s strategic gas asset moving toward 2027 start-up

What Is the Ubeta Gas Project and Where Is It Located?

The Ubeta gas project is a major gas condensate development located in Rivers State, Nigeria, about 80 kilometers northwest of Port Harcourt. It lies within Oil Mining Lease (OML) 58, a prolific block in Nigeria’s eastern delta region. Though the field was first discovered in 1964, the Ubeta gas project remained undeveloped for decades until it was formally sanctioned in 2024.

As of 2025, the Ubeta field is gaining renewed attention as one of Nigeria’s most important non-associated gas developments. It is being positioned to support domestic gas supply and feed into Nigeria LNG‘s export operations on Bonny Island. The project’s strategic location near existing infrastructure, including the Obite gas processing hub, allows for faster development timelines and optimized capital expenditure. It is part of a broader energy transition narrative where Nigeria seeks to monetize gas resources while aligning with low-carbon goals.

Who Operates the Ubeta Gas Project and What Is the Ownership Structure?

The Ubeta gas project is operated by TotalEnergies EP Nigeria Limited, which holds a 40% participating interest in OML 58. The Nigerian National Petroleum Corporation Limited (NNPCL) owns the remaining 60%, making it the majority stakeholder. This long-standing joint venture is one of Nigeria’s most mature upstream partnerships and has also developed other key assets within the OML 58 acreage, including the Obagi and Ibewa fields.

As of 2025, there have been no changes to the operatorship or ownership structure post-2022. Despite a wave of onshore divestments by international oil companies in Nigeria, TotalEnergies has retained its position in this gas-rich block, underscoring the asset’s strategic and commercial importance to its global portfolio. The partnership also benefits from consistent government support, especially as Nigeria’s policies increasingly emphasize non-associated gas for both domestic use and export.

What Is the Production Capacity and Reserve Profile of the Ubeta Field?

The Ubeta gas project is being developed with an expected peak production capacity of 300 million standard cubic feet per day (mmscfd) of gas, and 3,000 barrels per day of condensates. This output, equivalent to roughly 70,000 barrels of oil equivalent per day, is significant for a single-cluster field. These volumes will directly feed the Nigeria LNG terminal, where expanded export capacity is underway through the Train 7 project.

TotalEnergies and NNPCL have not publicly disclosed the total gas reserves in the Ubeta field. However, the development is widely believed to be economically viable under current LNG pricing, especially considering the relatively low investment of around $550 million and its integration with existing facilities. Reserve life is expected to exceed 15 years based on plateau production levels, positioning Ubeta as a steady, long-term contributor to both domestic supply and global LNG trade.

How Will the Gas Be Transported and Processed?

One of the distinguishing features of the Ubeta gas project is its infrastructure efficiency. Instead of requiring standalone processing or storage facilities, the gas from Ubeta will be routed via a new 11-kilometer buried pipeline to the existing Obite gas treatment plant. The Obite plant is already a key hub in OML 58, handling gas from nearby fields and equipped with the necessary dehydration, compression, and metering facilities.

Once treated at Obite, the gas will be transported through existing pipelines to Nigeria LNG (NLNG) on Bonny Island. NLNG is a key joint venture facility with shareholders including NNPCL, Shell, TotalEnergies, and Eni. With Train 7 currently under construction, NLNG’s capacity is expected to rise from 22 million tonnes per annum (mtpa) to 30 mtpa, providing sufficient offtake for new supply sources like Ubeta. This plug-and-play pipeline approach allows the Ubeta gas project to come online faster and at lower cost, maximizing returns.

What Is the Development Timeline and Major Milestones?

The final investment decision (FID) for the Ubeta gas development was taken in June 2024 by the TotalEnergies–NNPCL joint venture. The plan includes drilling a six-well cluster with all necessary surface facilities tied back to the Obite hub. Drilling activities are expected to begin by late 2025 or early 2026, with first gas targeted for 2027.

Construction activities for roads, pipeline corridors, and site preparation commenced in the second half of 2024. Procurement for long-lead items, such as valves, compressors, and electrical systems, is reportedly on schedule. As of mid-2025, the project remains within budget and on track for its 2027 commissioning.

The development is one of the first in Nigeria to adopt a fully electrified rig powered by low-emission sources. A 5 MW solar plant is being deployed at Obite to reduce diesel dependency and contribute to the project’s carbon mitigation plan.

Are There Geopolitical or Regulatory Risks Affecting Ubeta?

Unlike many legacy oil developments in the Niger Delta that have faced shutdowns due to community unrest, sabotage, or environmental litigation, the Ubeta gas project is benefitting from a relatively stable regulatory and geopolitical backdrop. Nigeria’s Petroleum Industry Act (PIA), passed in 2021, has introduced a clearer fiscal and operational regime, particularly for gas assets. Under PIA provisions, non-associated gas fields like Ubeta receive favorable terms including reduced royalties and capital allowances.

Environmental risks have also been mitigated through proactive planning. The use of electrified rigs, solar energy integration, and methane leak monitoring places Ubeta among the more climate-conscious projects in Nigeria. In addition, over 90% of total project man-hours are expected to be executed locally, meeting national content requirements and reducing labor disputes.

However, expectations remain high in host communities. TotalEnergies and NNPCL are working through existing community development agreements to ensure local hiring, infrastructure funding, and educational outreach continue throughout the project lifecycle.

How Will the Project Impact TotalEnergies and Nigeria’s Gas Ambitions?

For TotalEnergies, the Ubeta gas project aligns with its global strategy of focusing on low-emission, short-cycle, and high-return assets. Nigeria remains a cornerstone in its LNG value chain, and Ubeta will help backfill Train 7 capacity at NLNG. The company has publicly stated that over 50% of its global investments through 2030 will be in natural gas and renewables, and Ubeta fits that profile.

At the national level, the project supports Nigeria’s Decade of Gas initiative, which aims to increase the role of natural gas in power generation, export, and industrial feedstock. As global markets seek stable LNG supply amid the post-Ukraine war energy crisis, projects like Ubeta are vital to positioning Nigeria as a competitive and reliable LNG exporter.

NNPCL also benefits from the project’s efficiency, cost-sharing, and visibility. Unlike deep offshore projects that require longer timelines and higher capex, Ubeta offers a near-term production boost that feeds directly into national revenue.

What Are the Latest Developments on the Ubeta Gas Project in 2025?

As of Q2 2025, TotalEnergies confirmed during its investor update that early construction works at Ubeta were proceeding on schedule. Pipeline trenching activities for the 11-kilometer gas tie-back have started, and civil works at the well pad location are ongoing. The solar generation equipment for Obite is being installed, with commissioning expected by Q1 2026.

TotalEnergies executives also reiterated that Ubeta is part of its broader “low-emission LNG” strategy in Africa. No major delays or procurement bottlenecks have been reported. The drilling campaign is scheduled to begin by December 2025, following rig arrival and safety inspections.

What Is the Long-Term Outlook for Ubeta and Nigeria’s Gas Sector?

The long-term outlook for the Ubeta gas project remains positive. With a reserve life expected to stretch beyond 15 years, it is well-positioned to deliver sustained volumes to Nigeria LNG and potentially support domestic gas-fired power generation through future expansions. While not a mega-project by global standards, its design simplicity, infrastructure tie-in, and emissions mitigation make it a high-quality asset in Nigeria’s portfolio.

Analysts expect that successful commissioning of Ubeta by 2027 could trigger further brownfield developments in OML 58. In-fill wells, compression upgrades, and digital optimization are all potential next steps. Additionally, given Nigeria’s new gas pricing reforms and push for decentralized energy access, smaller satellite fields near Ubeta could also be revived.

Investors continue to watch Nigeria’s fiscal policy for gas, community dynamics, and global LNG prices, but Ubeta is seen as a low-risk, high-leverage development that ticks all the boxes for near-term monetization.