In a pivotal move to revitalize Nigeria’s oil and gas industry, the NNPC-TotalEnergies joint venture has announced a substantial $550 million Final Investment Decision (FID) for the Ubeta Field Development Project.

This decision is a direct response to President Bola Ahmed Tinubu’s Presidential Executive Order on Oil & Gas Reforms, which aims to enhance the investment climate and establish Nigeria as a top destination for oil and gas investments in Africa.

The Ubeta field, discovered in 1964 and located northwest of Port Harcourt in the eastern Niger Delta, is poised to play a crucial role in Nigeria’s energy landscape. Once operational, the field is expected to produce around 350 million standard cubic feet per day (MMScf/day) of gas and 10,000 barrels per day (BBLS/day) of associated liquids.

This development will significantly bolster gas supplies to Nigeria Liquefied Natural Gas (NLNG) Limited, addressing a vital need as LNG production has recently declined, contributing to rising cooking gas prices in the country.

The announcement came during a high-profile signing ceremony at the NNPC Towers. Mallam Mele Kyari, Group Chief Executive Officer of NNPC Limited, emphasized the importance of the government’s support in reaching this milestone. He credited President Tinubu’s administration with creating a favorable operational environment through targeted fiscal policies.

“We appreciate Mr. President for supporting us with the appropriate fiscal environment. The Presidential Executive Order is instrumental to us getting to this significant milestone, and we are now seeing the impact of the policy,” Kyari stated.

Mike Sangster, Senior Vice President for Africa, Exploration & Production at TotalEnergies, highlighted the strategic significance of the Ubeta project.

“Ubeta fits perfectly with our strategy of developing low-cost and low-emission projects and will contribute to the Nigerian economy through higher NLNG exports,” Sangster said.

The project is said to align with the government’s broader vision to enhance investor confidence in the oil and gas sector. Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, underscored this point, noting that the President’s policies have rekindled investor interest.

Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo added that the project exemplifies the effectiveness of government policies in creating a conducive environment for gas sector investments.

Located in Oil Mining Lease (OML) 58, the Ubeta gas condensate field will feature a new 6-well cluster connected to existing facilities at Obite via an 11km buried pipeline. Production is expected to commence in 2027, reaching a peak output of 300 million cubic feet per day, equivalent to about 70,000 barrels of oil equivalent per day, including condensates. Gas from Ubeta will be directed to the NLNG plant on Bonny Island, which is currently expanding its capacity from 22 to 30 million tonnes per annum (Mtpa).

The project is designed to be both low-cost and low-emission, utilizing existing gas processing infrastructure. Its carbon footprint will be further minimized through a 5 MW solar plant under construction at the Obite site and the electrification of the drilling rig. TotalEnergies is also committed to maximizing local content, ensuring over 90% of manhours are worked locally.

The development of the Ubeta field is expected to have a long-term positive impact on the domestic gas supply in Nigeria. With LNG production having seen recent declines, causing cooking gas prices to soar, the Ubeta project promises to stabilize and potentially reduce gas prices, making it more affordable for everyday Nigerians.

Additionally, the Ubeta FID is said to be a testament to the relentless efforts by NNPC Limited, supported by comprehensive executive backing, to resolve challenges that have historically deterred foreign investment in Nigeria’s oil and gas sector. The project is expected to stimulate economic activities, create numerous job opportunities, and provide significant value for stakeholders across the board.

In the latest episode of the emirship tussle, the Kano State Government has directed the state’s Commissioner of Police to remove the 15th Emir of Kano, Aminu Ado Bayero, from the Nasarawa mini palace.

This decision follows a contentious ruling by a Federal High Court that has sparked significant debate and confusion, leaving the parties to interpret it to suit their respective narrative.

The Federal High Court’s judgment, delivered by Justice Abdullahi Liman, did not invalidate the Kano Emirate Council (Amendment No. 2) Law, 2024. This law had recently abolished four of the five emirate councils in Kano and deposed all the emirs, including Aminu Ado Bayero.

However, the court found that the government’s actions, including the appointment of Sanusi as emir, were null and void due to the government’s failure to adhere to a court order.

Justice Liman criticized Governor Abba Kabir Yusuf’s speech during the reappointment of Sanusi, describing it as a step towards anarchy for defying the court’s order.

“If a court order cannot be respected despite evidence of service, then the government is heading to chaos,” Justice Liman said. He declared all actions taken by the governor after the court’s initial order as null and void and ordered all parties to maintain the status quo.

Government’s Response

In response to the court’s ruling, Kano State Attorney General and Commissioner for Justice, Haruna Dederi, asserted that the judgment was in favor of the state government, maintaining that Sanusi remains the emir.

Dederi stated that the government has planned renovations for the Nasarawa palace, including the demolition and reconstruction of its dilapidated wall fence.

“Following this court’s ruling, Kano State Government has directed the State Commissioner of Police to remove the deposed emir of the 8 metropolitan local governments from the government property where he is trespassing as the government has already concluded arrangements for the general reconstruction and renovation of the property including the demolishing and reconstruction of the dilapidated wall fence with immediate effect,” Dederi announced.

Dederi further explained, “By the ruling of the court, it has unequivocally reaffirmed the validity of the law passed by Kano State House of Assembly and assented to by His Excellency the Executive Governor of Kano State on Thursday, 23rd May 2024 by 5:10 p.m.

“This means that the abolishing of the five emirates created in 2019 is validated, and the deposition of the five emirs is also sustained by the Federal High Court. By implication, this means that Muhammadu Sanusi II remains the emir of Kano.”

The judgment stirs confusion and criticism

The court’s ruling has left both parties in limbo, with both sides interpreting the judgment to their advantage. The court upheld the validity of the Kano Emirates Council (Repeal) Bill 2024 while setting aside Governor Yusuf’s actions, creating a complex legal scenario.

Renowned constitutional lawyer Professor Auwalu Yadudu criticized the judgment for its contradictory nature.

“How can you say the actions taken in pursuit of a law are set aside, and then say you are not delving into the validity of the said law?” he questioned. Yadudu described the judge’s approach as “strange and baffling,” noting that it does not help the judicial process.

He added, “The judge has more or less held that he lacked jurisdiction on the issue by transferring the case to another judge, but still went ahead to set aside the governor’s actions.”

Human rights lawyer Femi Falana also expressed confusion over the ruling, pointing out that the Supreme Court had previously limited federal high courts’ jurisdiction over traditional institutions.

“The order is a bit confusing,” Falana said during an interview on Arise TV. He noted that the Supreme Court had issued two separate judgments limiting the powers of the federal court on traditional institutions.

“It cannot be done via fundamental rights application. In any country that loudly claims to pronounce and operate under the rule of law, the judgments of the Supreme Court are binding on all authorities,” he said.

Backstory

This legal battle is part of a broader power struggle over the Kano emirship. The conflict intensified when Governor Yusuf appointed Sanusi as emir in May 2024, only for the Federal High Court to declare the appointment null and void due to procedural issues.

The ongoing tussle is believed to be a reflection of deep political power play between the federal government and the Kano State. The police, which is under the control of the federal government, said that it would not enforce the order of the state government to evict Ado Bayero.