President Bola Tinubu has welcomed the $800 million Final Investment Decision (FID) on the Ima Gas Development Project by AMNI International, an independent oil and gas exploration and production company, in partnership with TotalEnergies.
In a statement issued on Wednesday by Bayo Onanuga, the president’s spokesperson, Mr Tinubu said the investment marked another major milestone in his administration’s efforts to unlock Nigeria’s vast gas resources for investment, industrialisation, job creation and economic growth.
|
|
The Ima Gas Project, located offshore in Oil Mining Leases (OMLs) 112 and 117, was discovered in 1973 but remained undeveloped for more than five decades.
According to the presidency, the project is expected to produce about 300 million standard cubic feet (MMscf) of gas per day at peak.
|
|
|
|---|
“Despite its significant reserves and potential as a source of feedgas for Nigeria LNG Limited, the resource remained underground and unable to contribute meaningfully to Nigeria’s economy. The FID, announced on September 23, has changed this,” the statement said.
The Ima Gas Project becomes the fourth major gas project to reach FID since Mr Tinubu assumed office, following the Iseni, Ubeta and HI projects.
The presidency said the FIDs reflect growing momentum in Nigeria’s gas sector and the administration’s efforts to convert the country’s gas resources into productive projects that create jobs, generate revenues and expand economic opportunities.
Stay Ahead with Premium Times
Follow us on Google News and never miss breaking stories, investigations, and in-depth reporting.
Add as a preferred source on Google
Mr Tinubu noted that for more than fifty years, the gas beneath Ima remained a resource with enormous potential, but potential alone does not create jobs, finance businesses, or improve the lives of our people.
“Our responsibility has been to create the conditions that turn Nigeria’s natural resources into productive investments and economic opportunities,” he noted.
He explained that the Final Investment Decision on Ima demonstrates what is possible when governments provide investors with a competitive, predictable and enabling environment.
“We are determined to unlock more of Nigeria’s gas resources to power our industries, expand our exports, create jobs and build lasting prosperity for our people,” the statement said.
Gas-sector reforms
Since assuming office, Mr Tinubu said he has prioritised reforms aimed at addressing years of underinvestment in Nigeria’s oil and gas industry.
He noted that although the Petroleum Industry Act of 2021 provided a regulatory foundation for the sector, several undeveloped projects continued to face fiscal and commercial challenges.
In 2024, Mr Tinubu issued a series of presidential directives developed by the team led by his Special Adviser on Energy, Olu Verheijen. The directives were designed to improve fiscal competitiveness, shorten contracting timelines and reduce project costs.
Ms Verheijen said the Ima project illustrated the objective of the reforms.
“The story of Ima is ultimately the story of what our reforms are designed to achieve. 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.
“A gas discovery made in 1973 can only contribute to prosperity when somebody invests the capital to develop it, banks finance it, contractors build it, Nigerians work on it, and the gas is ultimately put to productive use. That is the transition we are seeing today,” she added.
The project also highlights growing Nigerian participation across the energy value chain.
AMNI International, a Nigerian-owned exploration and production company, holds a majority interest in the asset, reflecting the increasing role of indigenous companies in major upstream developments.
Nigerian financial institutions have arranged 77 per cent of the project’s financing, while about 60 per cent of its workforce is expected to come from host communities, including Bonny, Finima and Andoni in Rivers State.
For decades, Nigeria has maintained one of Africa’s largest natural gas resource bases, although significant volumes have remained undeveloped.
The Federal Government’s gas strategy therefore focuses not only on increasing production but also on expanding the use of gas to support LNG exports and foreign exchange earnings, provide feedstock for industries, enable fertiliser and petrochemical production, improve power supply and create opportunities for Nigerian businesses and workers.
“Natural resources have value only when they are converted into opportunities for our people,” Mr Tinubu said.
“Our goal is to ensure that Nigeria’s gas powers Nigerian prosperity.”
Minister commends FID
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, also commended Mr Tinubu for the policy reforms that he said helped strengthen investor confidence and facilitated the FID by AMNI International and TotalEnergies EP Nigeria Limited.
Mr Ekpo described the FID as a major milestone for Nigeria’s gas sector and a vote of confidence in the investment potential of the country’s energy industry.
He said the development demonstrated the momentum behind the Federal Government’s efforts to create a more competitive, predictable, and investment-friendly environment for the development of Nigeria’s gas resources.
According to the minister, the Ima Gas Development Project is expected to add about 350 million standard cubic feet per day (MMscfd) to Nigeria’s gas production capacity when it comes on stream in 2028.
He said the project would help strengthen domestic gas supply and advance the government’s ambition to use natural gas to support industrialisation, energy security and economic growth.
READ ALSO: SPECIAL REPORT: Inside five international corruption cases involving Atiku, ex-wife
“The achievement of Final Investment Decision on the Ima Gas Development Project is a tangible demonstration of the positive impact of the policy reforms championed by His Excellency, President Bola Ahmed Tinubu.
“The Executive Orders and broader regulatory reforms approved by Mr President have strengthened investor confidence and improved the attractiveness of Nigeria’s gas sector,” Mr Ekpo said.
“Ima Gas Development Project is more than an investment in gas production; it is an investment in Nigeria’s future. It aligns with President Tinubu’s Renewed Hope Agenda and reinforces our collective commitment to transforming our natural gas resources into jobs, industries, revenues, and shared prosperity for the Nigerian people,” he added.
The minister also commended AMNI International and TotalEnergies EP Nigeria Limited for their confidence in Nigeria’s investment environment and for reaching the project milestone.
He described the joint venture as an example of how indigenous enterprise and international energy expertise could be combined to deliver commercially viable projects of strategic importance to Nigeria.
Mr Ekpo said successful delivery of the project would create opportunities for Nigerian businesses, stimulate employment, deepen local content participation, facilitate skills and technology transfer, and expand the country’s domestic gas economy.
He urged the joint venture partners to sustain the momentum generated by the FID and work closely with relevant government institutions to ensure the timely and efficient execution of the project.
He reaffirmed the Federal Government’s commitment to providing policy and regulatory support for investments that expand gas production and utilisation, strengthen infrastructure, create economic opportunities and advance the objectives of the Decade of Gas initiative and the Renewed Hope Agenda.
“Ima Gas Development Project reflects the kind of strategic investment needed to translate Nigeria’s abundant natural gas resources into tangible economic value, while supporting the country’s broader aspirations for industrialisation, energy security and sustainable economic growth,” he added.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
More News
![An airplane used to illustrate the story [PHOTO: Sputnik]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2021/07/tk4tpt5g_plane-generic_625x300_29_May_19.jpg?fit=650%2C400&ssl=1)
