The Federal Government of Nigeria has described the $800 million Final Investment Decision for the IMA Gas Development Project as a sign of renewed investor confidence in Nigeria's oil and gas sector. This development was announced by Minister of State for Petroleum Resources, Sen. Heineken Lokpobiri, and his counterpart for Gas, Ekperikpe Ekpo, during the signing of the IMA Joint Ventures Gas Field Development Project FID in Abuja.
The IMA Gas Development Project is being developed by AMNI International Petroleum Development Company Ltd., which holds a 60 percent interest, and TotalEnergies E&P Nigeria Ltd., which holds 40 percent and serves as the operator. The project is located offshore Nigeria across OMLs 112 and 117, in water depths of between eight and 10 meters. It will be connected to the existing BNAG plant on Bonny Island through an 18-inch, 23-kilometer multiphase pipeline.
The project is expected to supply feed gas to Nigeria Liquefied Natural Gas, supporting efforts to expand LNG capacity and strengthen Nigeria's position in the global gas market. The IMA field is projected to produce an average of 350 million standard cubic feet of gas per day at peak production, equivalent to more than 60,000 barrels of oil equivalent per day and about one-third of the gas requirement for NLNG Train 7.
According to Sen. Heineken Lokpobiri, the investment demonstrates the impact of government reforms, particularly the improved regulatory and fiscal framework introduced under the Petroleum Industry Act. He noted that Nigeria had experienced a prolonged period of limited investment in the oil and gas sector due to concerns over regulatory and fiscal uncertainty. Lokpobiri commended TotalEnergies E&P Nigeria and AMNI International Petroleum Development Company for reaching the FID stage.
Ekperikpe Ekpo described the IMA project as a vote of confidence in Nigeria's gas industry and a demonstration of the potential of the country's gas resources to support economic development. He said the Federal Government was positioning natural gas as a driver of power generation, industrialization, manufacturing, fertilizer production, petrochemicals, transportation, and clean cooking under its Decade of Gas initiative. Ekpo urged the joint venture partners to sustain the momentum and work with relevant government agencies to deliver the project on schedule.
The project is expected to create opportunities for Nigerian companies, generate jobs, promote skills development, and facilitate technology transfer. First gas from the project is expected in 2028 and will contribute to the government's target of increasing national gas production to 12 billion cubic feet per day by 2030. The partners' FID marks the transition of the project from the development and financing stage to execution.
The government's commitment to maintaining a stable and predictable investment framework through the Petroleum Industry Act and targeted incentives has been highlighted as a key factor in securing the FID. Lokpobiri called on Nigerian banks to increase financing for viable oil and gas projects, arguing that concerns about the global energy transition should not discourage investment in the sector.
Key points
- The $800 million FID for the IMA Gas Development Project signals renewed investor confidence in Nigeria's oil and gas sector.
- The project is expected to produce 350 million standard cubic feet of gas per day at peak production, supporting Nigeria's LNG capacity expansion plans.
- The project is expected to create opportunities for Nigerian companies, generate jobs, and promote skills development.
