After more than five decades of lying undeveloped, the long-abandoned Ima gas field has finally received an $800 million Final Investment Decision (FID) from AMNI International and TotalEnergies, opening the way for one of Nigeria’s major offshore gas developments.
The project, located in OMLs 112 and 117 off the coast of Rivers State, is expected to deliver up to 350 million standard cubic feet of gas per day (MMscfd) at plateau and produce first gas by the end of 2028.
The development is also expected to supply about one-third of the feedgas required for Nigeria LNG’s Train 7 expansion, strengthening the country’s gas supply outlook and creating a new stream of economic activity around the project.
The Federal Government and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday described the FID as a major demonstration of the impact of recent reforms in the oil and gas industry and a fresh vote of confidence in Nigeria’s investment environment.
The Ima field was discovered in 1973, but despite its significant gas resources, remained undeveloped for over 50 years.
President Bola Ahmed Tinubu, reacting to the FID, said the development showed that Nigeria could convert its enormous natural gas resources into investments, jobs and economic opportunities when the right commercial environment was created.
‘For more than 50 years, the gas beneath Ima remained a resource with enormous potential, but potential alone doesn’t create jobs, finance businesses or improve the lives of the people,’ Tinubu said in a statement signed by his Special Adviser on Information and Strategy, Bayo Onanuga.
‘Our responsibility has been to create the conditions that turn Nigeria’s natural resources into productive investments and economic opportunities.’
The President said his administration would continue to unlock the country’s gas resources to power industries, expand exports, create jobs and support economic growth.
The Ima FID becomes the fourth major gas project to reach investment decision under the Tinubu administration, following the Iseni, Ubeta and HI gas projects.
The development is being positioned by the government as evidence that the policy and fiscal reforms introduced in the oil and gas sector are beginning to revive projects that had remained commercially stalled.
Special Adviser to the President on Energy, Olu Verheijen, said the history of the Ima field illustrated the difference between having resources underground and creating the conditions required to develop them.
‘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,’ she said.
According to her, the project also reflects the increasing capacity of indigenous companies to participate in large-scale upstream developments.
AMNI, a Nigerian independent exploration and production company, holds 60 per cent of the project, while TotalEnergies holds 40 per cent and is the operator.
The project is also expected to have significant local economic impact, with about 60 per cent of its workforce projected to come from host communities, including Bonny, Finima and Andoni in Rivers State.
Adding to the significance of the investment, Nigerian financial institutions are providing about 77 per cent of the project financing, demonstrating increased participation by domestic banks in financing major oil and gas developments.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the FID as a major milestone for Nigeria’s gas sector and a strong vote of confidence in the country’s energy investment potential.
He attributed the development to reforms and Executive Orders approved by President Tinubu to improve competitiveness, strengthen the investment climate and accelerate project delivery.
Ekpo said the project would add substantially to Nigeria’s gas production capacity and support the government’s objective of using natural gas as a catalyst for industrialisation, energy security and economic growth.
At the FID ceremony in Abuja, NUPRC Chief Executive Officer, Oritsemeyiwa Eyesan, said the development was a product of consistent policy direction and committed partnerships.
‘Today’s success is attributable to His Excellency, the President of the Federal Republic of Nigeria, President Bola Tinubu,’ Eyesan said.
He pledged that the upstream regulator would continue to remove regulatory bottlenecks confronting investors.
‘As the chief regulator in the industry, we will enable business, we will unplug obstacles. The President has set the path for us, and we are determined to follow through,’ he said.
The Ima field lies in 8-10 metres of water offshore Rivers State.
TotalEnergies Managing Director, Mathieu Bouyer, said the company’s investment of more than $600 million represented confidence in Nigeria’s oil and gas industry.
He projected that the project could generate between $2 billion and $4 billion in value over its lifetime, depending on international gas prices.