President Bola Tinubu has praised the $800 million Final Investment Decision (FID) on the Ima Gas Project, a development that showcases the impact of his administration's reforms in Nigeria's oil and gas industry. The project, led by AMNI International in partnership with TotalEnergies, is expected to produce 300 million standard cubic feet of gas per day at peak production. This significant investment is a testament to the government's efforts to create a more attractive business environment for investors.
The Ima gas resource, located offshore in Oil Mining Leases 112 and 117, was discovered in 1973 but remained undeveloped for over five decades. The project has an estimated development cost of $1.108 billion and holds independently confirmed gross reserves of approximately 1.28 trillion cubic feet of non-associated gas. At plateau, the project is designed to produce 350 million standard cubic feet of gas per day for a minimum of eight years, providing a significant long-term gas supply stream to Nigeria's expanding LNG infrastructure.
According to President Tinubu, the development of the Ima gas project demonstrates what is possible when investors are provided with a competitive, predictable, and enabling environment. He emphasized that the government's responsibility is to create conditions that turn Nigeria's natural resources into productive investments and economic opportunities. The President's administration has prioritized reforms aimed at reversing years of underinvestment in Nigeria's oil and gas sector, including the Petroleum Industry Act of 2021.
The Ima project is the fourth major gas development to reach FID since Tinubu assumed office, following the Iseni, Ubeta, and HI projects. AMNI International, a Nigerian-owned exploration and production company, holds a majority interest in the asset, while Nigerian financial institutions arranged 77 percent of the project's financing. The project is expected to create jobs and stimulate economic growth, with about 60 percent of the project's workforce drawn from host communities in Rivers State.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the Ima project demonstrated the practical outcome of the reforms designed to achieve economic growth. He noted that Nigeria has never lacked resources, but the challenge has been creating commercial and investment conditions required to move those resources into projects that employ Nigerians and generate revenues. The Ima project is part of a broader strategy to convert Nigeria's extensive gas reserves into productive economic assets.
The Presidency said the project's development is expected to support liquefied natural gas exports and foreign exchange earnings, provide feedstock for industries, boost fertilizer and petrochemical production, and support more reliable electricity supply. The strategy is also expected to open opportunities for Nigerian businesses, contractors, and workers across the gas value chain. Gas from the development will supply approximately 30 percent of the feed gas requirement for Nigeria LNG's Train 7.
Chairman/CEO of AMNI International Petroleum Development Company Limited, Chief Tunde J. Afolabi, said the FID for the Ima Gas Project represents an important milestone for AMNI and reflects the company's continued commitment to the responsible development of Nigeria's oil and gas resources. The project will now progress into engineering, procurement, and construction ahead of commissioning and first gas, targeted for October 2028.
Key points
- The $800 million FID on the Ima Gas Project is a significant investment in Nigeria's oil and gas sector.
- The project is expected to produce 300 million standard cubic feet of gas per day at peak production.
- The development of the Ima gas project demonstrates the impact of President Tinubu's reforms in creating a more attractive business environment for investors.
