Nigeria’s Ima gas field, long considered a stranded asset beneath shallow waters off Bonny Island, has been revived after five decades of inactivity, thanks to revised fiscal policies. TotalEnergies SE and AMNI International Petroleum Development Co. announced a $800 million final investment decision (FID) to develop the field, marking a pivotal shift in the country’s energy landscape. The project, spanning licenses OML 112 and OML 117, will be integrated into the Nigeria LNG terminal via a 22-kilometer pipeline, with TotalEnergies holding a 40% stake and AMNI 60%. First gas is targeted for 2028, with daily output reaching 350 million cubic feet—equivalent to over 60,000 barrels of oil—supporting the expansion of Nigeria LNG’s capacity to 30 million tons annually.
The Ima field, discovered in the 1970s, remained undeveloped due to economic challenges and the dominance of oil investments. Operators historically prioritized associated gas, which is cheaper to monetize as a byproduct of oil production, over standalone non-associated fields like Ima. However, a 2024 policy shift by the Nigerian government introduced fiscal incentives tailored to non-associated gas projects, altering the economic calculus. TotalEnergies cited this reform as critical to unlocking Ima’s potential, following its 2024 sanctioning of the Ubeta gas project, which is set to begin operations next year.
Nicolas Terraz, president of Exploration & Production at TotalEnergies, emphasized the project’s alignment with the company’s integrated gas strategy. “The Ima gas project represents a new milestone in our efforts to deploy low-cost, low-emissions gas resources in Nigeria,” Terraz stated. The development is expected to supply a third of the feed gas for Nigeria LNG’s Train 7 expansion, a key component of the country’s ambition to become a major global liquefied natural gas (LNG) exporter.
Environmental considerations are central to Ima’s design. The offshore platform will draw power from shore instead of gas turbines, eliminating routine flaring and reducing emissions. Continuous methane monitoring systems will be deployed, while 60% of the development-phase workforce will be sourced from local communities. All major contracts will be awarded to Nigerian firms, reflecting the government’s push for domestic content in upstream projects.
The Ima project underscores a broader trend in Nigeria’s energy sector, where fiscal reforms are being tested as tools to revive stranded gas reserves. Experts view Ima as a litmus test for whether policy-driven incentives can transform decades-old discoveries into viable assets. If successful, the model could catalyze the development of other offshore fields, addressing Nigeria’s long-standing gas infrastructure gaps and enhancing energy security.
The initiative aligns with Nigeria’s strategic goals to leverage its vast gas reserves amid global energy transitions. However, challenges remain, including ensuring sustained investment and balancing environmental concerns with economic growth. Analysts note that Ima’s success could influence future policy frameworks, potentially attracting more private capital to the sector.
The revival of Ima highlights the interplay between regulatory innovation and market dynamics in Nigeria’s energy sector. As the country seeks to maximize its hydrocarbon potential, the project serves as a case study in how targeted fiscal policies can unlock value from previously unviable assets, with implications for both national development and global energy markets.