Nigeria's oil and gas sector is experiencing renewed investor interest as an $800 million offshore gas project reaches final investment decision. The Ima Gas Project, developed by AMNI International Petroleum Development Company in partnership with TotalEnergies EP Nigeria Limited, is expected to produce 300 million standard cubic feet of gas per day at peak capacity. This project is a significant development for Nigeria's upstream sector, which has seen regulatory and fiscal reforms improve the commercial prospects of oil and gas projects.
The $800 million Ima Gas Project is targeting production in 2028 and will supply gas to Nigeria LNG Limited, providing feedstock for the expansion of its Train 7 project at Bonny Island. The Train 7 project aims to increase Nigeria LNG's production capacity from 22 million tonnes per annum to 30 million tonnes, making it a strategically important development for Nigeria's export earnings and foreign exchange supply. This project demonstrates the growing commercial viability of gas developments following the Federal Government's reforms.
Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bashir Bayo Ojulari, described the final investment decision as a major vote of confidence in Nigeria's upstream investment environment. The Ima field was discovered over five decades ago but remained undeveloped for years, highlighting Nigeria's challenge in turning its vast gas reserves into commercial production. NNPC said the Ima project is the fourth major gas development to reach FID under the current administration.
The importance of the investment extends beyond the project itself, as more domestic gas supply can strengthen the feedstock base for LNG exports, support power generation, and provide fuel for industries. Construction and operations create demand for local contractors, engineering services, logistics, and skilled labor. This development is a significant step towards achieving Nigeria's energy goals and creating economic opportunities.
Meanwhile, Indonesia's state-owned oil company, Pertamina, is considering acquiring producing and near-production assets in Nigeria. Pertamina's Vice-President, Upstream Business Development, Toriq Abdat, said the company is seeking opportunities outside Indonesia due to declining domestic production and changing patterns of oil discoveries. Pertamina is also considering participation in Nigeria's 2026 licensing round.
Nigeria is targeting crude oil output of three million barrels per day by 2030, compared with current production of roughly 1.6 million to 1.7 million barrels per day. NUPRC Chief Executive, Oritsemeyiwa Eyesan, said regular licensing rounds remain a key part of the strategy to attract investors and increase production. The convergence of fresh gas investment and renewed foreign interest in oil assets is significant for Nigeria's wider economy.
Higher production would increase export earnings, improve foreign exchange liquidity, and strengthen government revenue, while greater domestic gas availability could reduce energy costs for industries and support power generation. Sustaining the momentum of investor interest will determine whether Nigeria can convert its vast hydrocarbon reserves into the investment, energy supply, jobs, and foreign exchange needed to accelerate economic growth.
Key points
- The $800 million Ima Gas Project is expected to produce 300 million standard cubic feet of gas per day at peak capacity.
- Nigeria is targeting crude oil output of three million barrels per day by 2030.
- The Ima Gas Project is the fourth major gas development to reach FID under the current administration.
