FG Says $800m IMA Gas Project Signals Renewed Investor Confidence

The Federal Government has described the $800 million Final Investment Decision (FID) on the IMA Gas Development Project as a significant indication of renewed investor confidence in Nigeria’s oil and gas sector.

The Ministers of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, and Petroleum Resources (Gas), Ekperikpe Ekpo, made the remarks on Wednesday in Abuja during the signing of the FID for the IMA Joint Venture Gas Field Development Project.

The project is being developed by AMNI International Petroleum Development Company Limited, which holds a 60 per cent interest, and TotalEnergies E&P Nigeria Limited, which has a 40 per cent stake and serves as operator.

Located offshore Nigeria in OMLs 112 and 117, the IMA field lies in water depths of between eight and 10 metres. It will be connected to the existing BNAG facility on Bonny Island through an 18-inch, 23-kilometre multiphase pipeline.

The development is expected to supply feed gas to Nigeria LNG Limited (NLNG), supporting the country’s efforts to expand its liquefied natural gas capacity and strengthen its position in the global gas market.

At peak production, the project is expected to deliver an average of 350 million standard cubic feet of gas per day, equivalent to more than 60,000 barrels of oil equivalent daily. The volume is also projected to meet about one-third of the gas supply requirement for NLNG Train 7.

Speaking at the signing ceremony, Lokpobiri said the investment reflected the impact of Federal Government reforms, particularly improvements in the regulatory and fiscal environment under the Petroleum Industry Act (PIA).

“President Bola Tinubu’s reforms are working. Nigeria is now one of the most attractive investment destinations in the world, and I want to see more and more FIDs like this,” he said.

Lokpobiri noted that Nigeria had experienced years of limited investment in the oil and gas sector due largely to regulatory and fiscal uncertainties.

He said recent reforms had helped create a more stable and competitive investment environment, while commending TotalEnergies and AMNI International for advancing the IMA project to the FID stage.

The minister also urged Nigerian banks to increase financing for viable oil and gas projects, arguing that the global energy transition should not discourage investment in a sector that would remain important to the global energy mix for the foreseeable future.

He further called on industry operators to reduce the time between project conception and final investment decisions to accelerate development and production.

Also speaking, Ekpo described the IMA project as a vote of confidence in Nigeria’s gas industry and an example of how the country’s vast gas resources could support economic transformation.

He said the government was positioning natural gas as a major driver of power generation, industrialisation, manufacturing, fertiliser and petrochemical production, transportation and clean cooking under the Decade of Gas initiative.

According to him, the project demonstrates how Nigeria can convert its gas resources into bankable investments through collaboration among government agencies, regulators and industry operators.

Ekpo said the government remained committed to maintaining a stable, predictable and investment-friendly environment through the PIA and targeted incentives.

He urged the joint venture partners to sustain the momentum and work closely with relevant government agencies to ensure timely delivery of the project.

The minister said the development would also create opportunities for Nigerian companies, generate jobs and promote skills development and technology transfer.

With first gas expected in 2028, Ekpo said the IMA project would contribute to the Federal Government’s target of increasing Nigeria’s gas production to 12 billion cubic feet per day by 2030.

He assured investors that the Ministry of Petroleum Resources would continue to support projects capable of accelerating gas development and contributing to sustainable economic growth.