TotalEnergies EP Nigeria and AMNI International Petroleum Development Company Ltd. have taken Final Investment Decision (FID) on the IMA Gas Development Project offshore Nigeria.
Both companies are targeting production of 350 million cubic feet of gas per day (MMcfd) from the offshore project.
Mr. Matthieu Bouyer, Managing Director, TotalEnergies EP Nigeria, made this known on Wednesday in Abuja at the project’s FID signing.
Bouyer said the project was expected to generate between two billion dollars to four billion dollars in value over its lifetime.
The News Agency of Nigeria (NAN) reports that the project is being developed by the TotalEnergies, as operator with a 40 per cent interest and its partner AMNI, with a 60 per cent interest.
Expected to start production in 2028, Ima will deliver 350MMcfd at plateau and supply about one-third of the gas required for the Nigeria Liquefied Natural Gas (NLNG) Train Seven expansion.
Bouyer said the shallow-water IMA field, located about eight kilometres offshore, was designed to supply gas to Nigeria NLNG Ltd., with first gas expected by the end of 2028.
He said the project represented an investment of more than 600 million dollars and a vote of confidence in Nigeria’s oil and gas industry.
“The project’s development has been enabled by a long-standing partnership between TotalEnergies and AMNI, supported by the Federal Government, regulators, financial institutions and other stakeholders.
“Ima is designed as a low-cost, low-emissions development, featuring electric power from shore, no flaring, and permanent methane detection and monitoring.
“This milestone further advances TEPNG’s integrated gas strategy and supports the expansion of Nigeria LNG’s liquefaction capacity from 22 million tonnes to 30 million tonnes per annum.
“One particular thing about this financing is that it is more than 75 per cent from Nigerian banks, so it is a Nigerian project made by Nigerian contractors and financed by Nigerian institutions,” he said.
He said that the project would also deliver strong Nigerian content, with all key contractors being local companies and around 60 per cent of the development workforce expected to come from host communities.
He said permanent methane monitoring systems would be installed on the platform to enable continuous monitoring of emissions.
According to him, IMA project, combined with TotalEnergies’ UBETA gas project, represent more than one billion dollars in investment and about 20 million standard cubic metres per day of gas production.
Bouyer said the projects demonstrated that Nigeria had competitive gas opportunities and the industrial and financial capacity to develop them.
He commended the Federal Government for reforms that had improved the competitiveness and investment environment of the oil and gas sector, particularly measures supporting non-associated gas development.
“The long-term gas sales arrangement with NLNG, the commitment of our lenders and the support from the government and regulators have made this project possible,” Bouyer said.
In his remarks, Chief Tunde Afolabi, Chairman/CEO, AMNI International Petroleum Development Company Ltd., said the FID demonstrated that Nigeria could still attract serious, long-term investment into its oil and gas sector.
Afolabi said the projects demonstrated the importance of trust, partnership and commitment between indigenous and international energy companies.
“Resources beneath the ground have little economic value until we create the conditions that allow investment, technology and human capability to convert those resources into production.
“Indigenous participation in the petroleum industry should go beyond ownership to include technical excellence, financial discipline, good governance and the development of Nigerian companies capable of partnering with leading international energy firms,” he said.
He said the partnership with TotalEnergies combined the international company’s technical and project execution capabilities with AMNI’s experience as a Nigerian independent, creating an opportunity to deliver greater value.
Afolabi said the attainment of FID marked the beginning rather than the end of the project, with priorities now focused on safe execution, schedule, technical integrity, environmental responsibility and meaningful engagement with host communities.
He said AMNI would work with TotalEnergies and the Nigerian Content Development and Monitoring Board (NCDMB) to maximise Nigerian participation in engineering, procurement, construction and operations.
SOURCE: nannews.ng
