President Bola Ahmed Tinubu has welcomed the 800-million-dollar Final Investment Decision, FID, on the Ima Gas Project, describing it as a major step towards developing Nigeria’s long-undeveloped gas resources.
The project, being developed by Nigerian independent oil and gas company, AMNI International, in partnership with TotalEnergies, is expected to produce about 300 million standard cubic feet of gas per day at peak.
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The Ima gas resource, located offshore in Oil Mining Leases, OMLs, 112 and 117, was discovered in 1973 but has remained undeveloped for more than five decades.
The resource is considered a potential source of feedgas for Nigeria LNG Limited, but its development had remained stalled until the Final Investment Decision announced on September 23rd.
President Tinubu said the development demonstrates the potential for Nigeria’s natural resources to support job creation, industrial activity and economic growth when backed by investment and enabling conditions.
He said the Federal Government would continue efforts to create a competitive and predictable environment capable of attracting investment into the oil and gas sector.
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The Ima Gas Project is the fourth major gas project to reach FID since President Tinubu assumed office, following the Iseni, Ubeta and HI projects.
Special Adviser to the President on Energy, Ms Olu Verheijen, said the development reflects efforts to create the commercial and investment conditions required to move Nigeria’s gas resources from discovery to production.
She said the country’s challenge had not been a lack of resources, but ensuring that projects receive the capital, financing and commercial conditions required for development.
According to the State House, the project also highlights increasing Nigerian participation in the energy sector, with AMNI International, a Nigerian-owned exploration and production company, holding a majority interest in the asset.
It added that Nigerian financial institutions arranged 77 per cent of the project’s financing, while about 60 per cent of the project workforce is expected to come from host communities, including Bonny, Finima and Andoni in Rivers State.
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The Federal Government says its gas strategy is focused on expanding LNG exports, providing feedstock for industries, supporting fertiliser and petrochemical production, improving power supply and creating opportunities for Nigerian businesses and workers.
President Tinubu said the government’s objective was to ensure that Nigeria’s gas resources are developed and converted into economic opportunities for Nigerians.