By Julius Peter, Abuja
The Nigerian National Petroleum Company Limited (NNPC Ltd) has welcomed the $800 million Final Investment Decision (FID) on the Ima Gas Project, describing the development as a major milestone that underscores the growing viability of Nigeria’s upstream gas sector.
The company said the project, located offshore in Oil Mining Leases (OMLs) 112 and 117, is being developed by indigenous energy company AMNI International in partnership with TotalEnergies. At peak production, the project is expected to deliver about 300 million standard cubic feet of gas per day, providing critical feedgas for the expansion of Nigeria LNG Limited’s operations at Bonny Island.
According to NNPC Ltd, the gas from the Ima project will support the Train 7 expansion of Nigeria LNG, which is designed to increase the Bonny Island plant’s production capacity from 22 million tonnes per annum (Mtpa) to 30 Mtpa.
The Final Investment Decision is particularly significant because the Ima gas resource had remained undeveloped for decades, despite its potential to contribute to Nigeria’s gas supply and LNG ambitions. Recent industry reports indicate that the Ima field was discovered in 1973 and is now moving towards commercial development following the FID by AMNI and TotalEnergies.
NNPC Ltd said the investment decision was facilitated by the Presidential Directives issued in 2024, which introduced fiscal incentives for non-associated gas projects, streamlined contracting processes and helped reduce development costs.
The company noted that Ima is the fourth major gas project to reach FID under President Bola Ahmed Tinubu, following the Iseni, Ubeta and HI projects.
Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, described the development as “a decisive vote of confidence in Nigeria’s gas sector and in the bold reforms” that have created more competitive terms and a predictable investment environment for investors.
Ojulari’s assessment reflects the wider importance attached to the project by the national oil company, particularly at a time when Nigeria is seeking to expand gas production, improve domestic energy supply and strengthen its position in the international LNG market.
Beyond the immediate production of gas, the project is expected to contribute to the broader development of Nigeria’s energy value chain by providing additional feedstock for LNG production and supporting associated economic activities.
The connection between the Ima project and NLNG’s Train 7 expansion is also strategically important. Industry reports indicate that the Ima field could provide a significant portion of the additional gas required for Train 7, thereby linking upstream gas development directly with Nigeria’s LNG expansion ambitions.
The development also highlights the increasing role of indigenous companies in Nigeria’s upstream petroleum industry.
NNPC Ltd specifically commended the collaboration among AMNI International, TotalEnergies and the Nigerian financial sector, describing the partnership between an indigenous operator, an international energy company and domestic capital providers as a potential template for future upstream projects.
The national oil company said the model demonstrates how Nigerian businesses can work with international partners and domestic financial institutions to unlock previously stranded or undeveloped hydrocarbon resources.
The Ima project therefore represents not only an investment commitment but also a potential demonstration of how regulatory reforms, improved commercial terms and partnerships can help bring long-delayed petroleum assets into production.
Industry stakeholders have increasingly focused on the need to convert Nigeria’s substantial gas resources into commercially productive assets, particularly as the country seeks to reduce energy shortages, support industrialisation and increase export earnings.
The project is expected to contribute to these objectives by expanding the volume of gas available to the domestic and export-oriented energy value chain.
NNPC Ltd said it would continue to collaborate with the Federal Government, regulators and industry partners to sustain the momentum of investment in the upstream sector and ensure that Nigeria’s gas resources are deployed to support industrialisation, job creation and long-term economic prosperity.
The company’s position is consistent with its broader strategy of expanding gas processing and transportation infrastructure for both domestic consumption and exports. NNPC states that its gas strategy is aimed at meeting domestic energy needs while supporting Nigeria’s position in the global energy markets.
The $800 million Ima FID thus adds to a series of major investment decisions in Nigeria’s petroleum industry and provides another indication of efforts to unlock previously undeveloped upstream assets.
For Nigeria’s gas sector, the project is expected to have implications beyond the Ima field itself, particularly if it contributes to a sustained pipeline of investment decisions in non-associated gas developments.
NNPC Ltd said the latest development reinforces its commitment to working with stakeholders to maintain investment momentum and maximise the economic value of Nigeria’s gas resources.
