With over 30 years of experience in the oil and gas sector, Yetunde Taiwo is the General Manager of Integrated Gas Development at FIRST E&P. He previously led Seplet's ANOH project to final investment decision and held senior leadership roles at Seplet Energy, NNPC, Chevron and BG.
In this interview with BusinessDay, he discusses the historic 10-year gas supply agreement with NLNG, what it means for Nigeria's gas ambitions for the decade, and how FIRST E&P is positioning itself as a leading offshore gas solutions provider. Dipo Oladehinde brings some excerpts:
What does this 10-year gas supply agreement mean for FIRST E&P, and how does it fit with Nigeria's broader “Gas Decade” aspirations?
This agreement really touches my heart because it represents the convergence of several important objectives. For First E&P, we want to be known as an energy solutions provider, and gas is at the center of today's energy security discussion. This GSA strengthens our position as a leading offshore gas operator; There are no other independent companies in the offshore sector doing what we are doing.
The deal aligns perfectly with the Gas Decade initiative launched in 2020. When we look at where Nigeria is today, the progress has been remarkable. Just this morning, I saw NMDPR data showing we are producing 4.8 Bcf per day. A decade ago, we were swinging between 1 and 1.5 Bcf, including export gas. The government's ambition to produce 12 Bcf by 2030 is achievable, but every player needs to be at the table. This agreement shows how FIRST E&P is contributing directly to that national goal.
The deal starts at 100mmscf/d and increases to 500mmscf/d from 2026. What infrastructure or development milestones are in place to support this ramp-up?
Our current supply to NLNG utilizes existing infrastructure, limited to a maximum of 100 to 120 mmscf/d. However, we have ample subsurface resources that can be diverted 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 the ultimate goal of 1 BCF per day.
This is a phased approach. We are starting with what we can provide through existing systems, but we are already planning the next phase of development. The beauty of this project is that it has also been designed to accommodate third party participation, meaning our infrastructure investment will benefit other operators and contribute to wider industry growth.
Why was NLNG selected 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 working on their final investment decision for Train 7, so we knew there was market demand. Second, our offshore location made them the most technically suitable off-taker, however connecting from offshore to NLNG's pipeline system posed its own challenges, which our technical team was able to solve innovatively.
This transaction affects Nigeria at many levels. Globally, this increases the production capacity of NLNG, thereby generating substantial revenue for the country. Domestically, NLNG produces the largest share of LPG in Nigeria, improving social welfare by providing affordable cooking gas. So, while we are supplying to the export market, we are also indirectly supporting domestic energy access and improving the quality of life for Nigerian families.
Developing offshore gas is capital-intensive. How is the JV managing project financing, and what risks do you see in making this long-term commitment?
You may be surprised that financing may not be the biggest risk we face. Really the main risk is our ability to accurately predict what is 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 make predictions based on the data available.
That said, we have demonstrated strong predictability over the last few years. We have drilled successful exploration wells and currently have sustained production of 60,000 barrels per day from developed wells. Our internal processes and technical capabilities help us effectively mitigate these subsurface risks.
Regarding financing, it is a joint venture with NNPC Limited, and together we have secured the required funds. We believe that internally generated revenues from the project will sustain the 10-year supply commitment. Additionally, we are positioned to benefit from the President's directive on gas monetization, which helps operators manage significant capital expenditures by accelerating cost recovery. The project is designed to be robust and financially standalone.
The company recently achieved an operational milestone with its “flares down” achievement. How does this, along with your gas re-injection 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 comes to fruition, we are re-injecting the gas instead of flaring it. Although reinjection does not 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 are truly ahead of the curve; We have already stopped regular flaring. Now, the focus is on converting the gas that we are re-injecting into commercial value. These supply projects allow us to use that gas for sale, which brings value to both FIRST E&P and the federal government while eliminating greenhouse gas emissions.
This approach strengthens our upstream operations by creating a circular value system. We're not wasting resources, we're maintaining pressure on the reservoir through re-injection, and now we're monetizing something that would otherwise flare up. It is operationally efficient and environmentally responsible.
As global demand for low-carbon energy grows, how does this agreement contribute to Nigeria’s position as a competitive supplier in regional and international gas markets?
This is part of a tiered strategic approach for us. Although we are initially supplying NLNG to the export market, our long-term vision includes bringing the gas directly to the domestic market. The challenge right now is infrastructure; We don't have systems connecting offshore to the domestic grid.
However, by gaining access to NLNG's pipeline system, we are creating opportunities to think innovatively about how we can ultimately serve the domestic market as well.
For First E&P, the real impact of being an energy solutions provider comes when we are directly impacting the country's domestic energy security. But our current dealings with NLNG should not be underestimated; This strengthens Nigeria's position as a reliable LNG supplier globally while supporting domestic LPG availability.
Looking at the trajectory of the Gas Decade Initiative, I am confident that with continued collaboration among operators, government incentives, infrastructure investments 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.
