Nigeria's Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has urged oil and gas companies to shorten the period required to reach Final Investment Decisions (FIDs) on projects. Speaking at the FID signing ceremony for the $800m Ima Gas Project in Abuja, Lokpobiri emphasized that Nigeria needs to move quickly from discoveries to actual production. The Ima project, a joint venture between AMNI International and TotalEnergies, is expected to commence production in 2028.
The Ima Gas Project, located on OMLs 112 and 117 offshore near Bonny Island, Rivers State, was discovered in 1973 but has only now reached the development stage. TotalEnergies operates the project with a 40% interest and expects the field to reach a plateau of 350 million standard cubic feet of gas per day. The project will supply about one-third of the gas required for the ongoing Nigeria LNG Train 7 expansion. Lokpobiri attributed the improvement in investment activity to reforms introduced by President Bola Tinubu's administration.
Lokpobiri cited the lack of clarity in the previous regulatory environment as a major obstacle to attracting investments. He noted that the current administration's reforms have provided greater fiscal and regulatory certainty, making it more attractive for investors. The minister also emphasized the importance of Nigerian banks in financing new projects, particularly as international investors reassess energy investments. He encouraged domestic financial institutions to continue supporting the sector.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the Ima FID as a vote of confidence in Nigeria's gas sector. He highlighted the Government's Decade of Gas initiative, which aims to use natural gas to support power generation, manufacturing, fertiliser production, petrochemicals, transportation, and clean cooking. Ekpo expressed confidence that the project will contribute to achieving the target of 12 Billion Cubic Feet per day by 2030.
Special Adviser to the President on Energy, Olu Verheijen, emphasized that the significance of the Ima development goes beyond the volume of gas expected from the field. She noted that the project illustrates the importance of creating conditions that allow natural resources to be converted into investment, production, jobs, and higher incomes. Verheijen stated that Ima is the fourth gas project to reach FID under the current administration.
The Ima project is designed with power supplied from shore, no flaring, and permanent methane monitoring. About 60% of the workforce during development is expected to come from host communities. TotalEnergies said the project would be developed through a single offshore platform connected by a 22-kilometre pipeline to Nigeria LNG. The project's impact will be measured by the economic activity generated by the gas.
Key points
- The Ima Gas Project is expected to commence production in 2028 and reach a plateau of 350 million standard cubic feet of gas per day.
- The project will supply about one-third of the gas required for the ongoing Nigeria LNG Train 7 expansion.
- The Minister of State for Petroleum Resources (Oil) has urged oil and gas companies to accelerate investment decisions to drive growth in the sector.
