How FIRST E&P is turning reinjected gas into commercial value – Yetunde Taiwo

Yetunde Taiwo is general manager, integrated gas development at FIRST E&P, with over 30 years of experience in the oil and gas sector. She previously led Seplat’s ANOH project to final investment decision and has held senior leadership roles at Seplat Energy, NNPC, Chevron, and BG.

In this interview with BusinessDay, she discusses the landmark 10-year Gas Supply Agreement with NLNG, what it means for Nigeria’s Decade of Gas ambitions, and how FIRST E&P is positioning itself as a leading offshore gas solutions provider. Oladehinde Oladipo brings excerpts:

What does this 10-year Gas Supply Agreement mean for FIRST E&P, and how does it align with Nigeria’s broader “Decade of Gas” aspirations?

This agreement truly warms my heart because it represents the convergence of several critical objectives. For FIRST E&P, we want to be known as an energy solutions provider, and gas is at the centre of today’s energy security discussion. This GSA solidifies our position as a foremost offshore gas operator; there’s no other independent company in the offshore space doing what we’re doing.

The deal aligns perfectly with the Decade of Gas initiative, launched in 2020. When we look at where Nigeria is today, the progress has been remarkable. Just this morning, I saw NMDPRA data showing we’re producing 4.8 BCF per day. A decade ago, we were oscillating between 1 and 1.5 BCF, including export gas. The government’s aspiration to produce 12 BCF by 2030 is achievable, but every player needs to come to the table. This agreement demonstrates how FIRST E&P is directly contributing to that national goal.

The deal starts at 100mmscf/d and scales to 500mmscf/d from 2026. What infrastructure or development milestones are in place to support this ramp-up?

Our current supply to NLNG utilises existing infrastructure, which is limited to a maximum of 100 to 120 mmscf/d. However, we have substantial subsurface resources that can translate into additional projects. Within the next three to five years, we intend to build new infrastructure that will increase our gas supply capacity from 100 to 500 mmscf/d, with an ultimate target of 1 BCF per day.

This is a phased approach. We’re starting with what we can deliver through existing systems, but we’re already planning the next phase of development. The beauty of this project is that it’s designed to accommodate third-party participation as well, which means our infrastructure investment will benefit other operators and contribute to broader industry growth.

Why was NLNG chosen as the off-taker for this gas, and how does this agreement strengthen Nigeria’s position in the global LNG market?

NLNG was a natural choice for several reasons. First, they were actively pursuing their Train 7 final investment decision, so we knew the market demand was there. Second, our offshore location made them the most technically suitable off-taker, though connecting from offshore to NLNG’s pipeline system presented its own challenges, which our technical team was able to solve innovatively.

This transaction impacts Nigeria on multiple levels. Globally, it enhances NLNG’s production capacity, which generates substantial revenue for the country. Domestically, NLNG produces the largest chunk of LPG in Nigeria, which improves social welfare by providing affordable cooking gas. So, while we’re supplying to an export market, we’re also indirectly supporting domestic energy access and improving quality of life for Nigerian households.

Developing offshore gas is capital-intensive. How is the JV managing project financing, and what risks do you see in delivering on this long-term commitment?

You might be surprised that financing may not be the biggest risk we face. The key risk actually reserves, our ability to accurately predict what’s in the subsurface and produce it effectively to meet our contractual obligations. This is a technical risk that every upstream player faces because you can only predict based on available data.

That said, we’ve demonstrated strong predictability over the years. We’ve drilled successful exploration wells and have development wells currently producing 60,000 barrels per day sustainably. Our internal processes and technical capabilities help us mitigate these subsurface risks effectively.

Regarding financing, this is a joint venture with NNPC Ltd, and together we’ve secured the necessary funding. We believe internally generated revenue from the project will sustain the 10-year supply commitment. Additionally, we’re positioned to benefit from the Presidential Directives on gas monetisation, which help operators manage the significant capital expenditure by accelerating cost recovery. The project is designed to be robust and financially standalone.

The company recently hit an operational milestone with its “Flares Down” achievement. How does this, along with your gas reinjection efforts, reinforce your sustainability pathway and strengthen the efficiency and resilience of your upstream operations?

At FIRST E&P, we pride ourselves on being a responsible and prudent operator. Even before this project materialised, we have been reinjecting gas rather than flaring it. While reinjection doesn’t provide direct financial value, it eliminates flares, reduces carbon emissions, and aligns us with the federal government’s mandate for zero routine flaring by 2030.

We’re actually ahead of the curve; we’ve already stopped routine flaring. Now, the focus is on converting the gas we’ve been reinjecting into commercial value. These supply projects allow us to harness that gas for sale, which brings value to both FIRST E&P and the federal government while continuing to eliminate greenhouse gas emissions.

This approach strengthens our upstream operations by creating a circular value system. We’re not wasting resources, we’re maintaining reservoir pressure through reinjection, and now we’re monetising what would otherwise be flared. It’s operationally efficient and environmentally responsible.

As global demand for lower-carbon energy grows, how does this agreement contribute to Nigeria’s positioning as a competitive supplier in regional and international gas markets?

This is part of a tiered strategic approach for us. While we’re initially supplying NLNG for the export market, our longer-term vision includes bringing gas directly into the domestic market. The challenge right now is infrastructure; we don’t have systems linking offshore to the domestic grid.

However, by gaining access to NLNG’s pipeline system, we’re creating opportunities to think innovatively about how we can eventually serve the domestic market as well.

For FIRST E&P, the real impact of being an energy solution provider comes when we’re directly affecting the country’s domestic energy security. But our current transaction with NLNG shouldn’t be underestimated; it strengthens Nigeria’s position as a reliable LNG supplier globally while simultaneously supporting domestic LPG availability.

Looking at the trajectory of the Decade of Gas initiative, I’m confident that with continued collaboration between operators, government incentives, infrastructure investment, and the elimination of routine flaring by 2030, Nigeria will achieve energy sufficiency. The future is bright if we maintain this momentum and work together across the value chain.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy.

He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

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