TotalEnergies and AMNI International have reached a Final Investment Decision (FID) on the offshore IMA gas field project, clearing the way for a development expected to generate between $2 billion and $4 billion in total value over its lifespan.
The project, which is expected to produce about 300 million standard cubic feet of gas per day, marks a major milestone for Nigeria’s gas expansion strategy, bolstering energy supply security while capitalizing on favorable long-term market fundamentals.
Ima field, located offshore in OMLs 112 and 117, was discovered in 1973 but remained undeveloped for more than five decades. With the partnership, the project will be connected to the existing BNAG plant on Bonny Island through an 18-inch, 23-kilometre multiphase pipeline.
Speaking during FID signing in Abuja on Wednesday, Matthieu Bouyer, Managing Director, TotalEnergies Upstream Companies, said that the project was being enhanced through a certain number of reforms introduced by the Tinubu-led administration, especially the executive order specifically on the non-associated gas.
He explained that the reforms have improved the competitiveness of the Nigerian oil and gas sector and supported the investment conditions for projects such as Obeta, that was launched two years ago.
For Bouyer, the investment on Ima project is not only focused on energy infrastructure, but also represent an investment in Nigerian companies, Nigerian talent, and Nigerian long-term value and industrial capabilities.
‘The value must also be visible in the community closer to the project. And more than 60 percent of the work done locally will be done by local community workforce.
‘The project will create opportunities through employment, local contracting, vocational and technical skills development. Overall, the value generated by the project will be between $2 to $4 billion across its life, depending on the oil and gas prices in Nigeria.
‘Ima is not an isolated decision, it is part of Total Energy’s sustained commitment to the country as we have been present in Nigeria for more than 60 years,’ he said.
Speaking further, Bouyer said that the company’s projects in Nigeria, shows that Nigeria has competitive gas opportunities, capable partners, and the industrial and financial strength to deliver, measure, and deliver products.
For him, the priorities for the project are centered around, safety, disciplined delivery, and strong coordination across the value chain.
In his remarks, Tunde Afolabi, chairman, AMNI international petroleum company, said that the IMA project is not only a commercial development for the joint venture, but its gas will provide material feedstock to Nigeria LNG and support the additional capacity being created through Train 7.
He explained that by converting discovered gas into production, export earnings, government revenue and Nigerian business activity, IMA gives practical expression to Nigeria’s gas development ambitions.
Noting that major energy companies have investment opportunities competing for funding across many parts of the world, Afolabi said that reaching FID in Nigeria sends a positive signal that opportunities in can still be identified, structured, financed and developed successfully within the country.
‘We thank Nigeria LNG Limited for the confidence reflected in the long-term Gas Supply Agreement that underpins this investment. By converting discovered gas into production, export earnings, government revenue and Nigerian business activity, IMA gives practical expression to Nigeria’s gas development ambitions.
‘This decision was also enabled by deliberate action from the Federal Government. The fiscal and policy measures introduced for offshore non associated gas, together with the engagement of the relevant regulators and agencies, helped move IMA from opportunity to investable project.
‘We acknowledge that contribution and encourage the continued stability and predictability that will allow this FID to be followed by many others. Capital is disciplined, capital has choices and major energy companies today have investment opportunities competing for funding across many parts of the world.
‘Therefore, when companies take an FID in Nigeria, it sends an important signal, it says that opportunities in this country can still be identified, structured, financed and developed successfully,’ Afolabi said.
Also speaking at the event, Olu Verheijen, Special Adviser to the President on Energy, said that while Nigeria has never lacked resources, the challenge has been creating the commercial and investment conditions required to move those resources from beneath the ground into projects that employ Nigerians, create opportunities for Nigerian businesses, generate revenues and support economic growth.
The project according to her, also demonstrates the growing depth of Nigerian participation across the energy value chain.
While AMNI International petroleum development company accounts for 60 percent interest, TotalEnergies accounts for 40 percent interest and operatorship.