L-R: Group Managing Director of SEEPCO, Mr. Tony Chukwueke with Group Managing Director, Nigerian National Petroleum Corporation, Mallam Mele Kyari at the signing ceremony |
The Nigerian National Petroleum Corporation (NNPC) and Sterling Oil Exploration and Production Company (SEEPCO) have signed a pact to unlock 1.2 trillion cubic feet of gas from Oil Mining Lease (OML) 143.
The Gas Development Agreement (GDA), according to the Group
Managing Director of the NNPC, Mallam Mele Kyari, is in sync with the Federal
Government’s National Gas Expansion Programme (NGEP).
He disclosed yesterday that the resource from the project
would be processed at the Ashtavinayak Hydrocarbon Limited’s (AHL) 125 million
standard cubic feet (mmscf) of gas per day gas plant located in Kwale, Delta
State.
“This opens a gateway for other opportunities in the oil and
gas industry, not just SEEPCO Group but for other companies too. We are happy
that this would unlock significant volumes of gas, which would deliver
125mmscfd to the midstream plant that you have built. Of course, this is a
great milestone for us and we are happy to do business with you. You are a very
reliable partner because when you say things, you get them done,” Kyari added.
The NNPC boss said the development of OML 143 would bring
value for the Federal Government, NNPC and SEEPCO Group that would in turn
boost the nation’s economy.
On his part, the Group Managing Director of SEEPCO, Tony
Chukwueke, said the pact was a milestone for the country, because it was the
“first agreement in Nigeria that fully separates gas development from oil
production”, noting that the arrangement would promote holistic development of
the gas potential in the block.
He explained that the GDA was a significant step, as it was
the first of its kind to expressly include terms that “encourage the contractor
to be effective in its cost management, thereby passing on significant revenue
to the Federal Government, NNPC and other stakeholders.”
The deal is required, pursuant to the Production Sharing
Contract (PSC) obligations, to set out the terms for the development of the
1.2tcf non-associated gas oil block by SEEPCO, which is the contractor with the
NNPC as the concessionaire.
The additional gas supply from the project would raise the
nation’s gas production profile, make dry gas available for the proposed 650
megawatts NNPC/SEEPCO Independent Power Plant, boost in-country supply of
Liquefied Petroleum Gas (LPG) and general domestic gas utilization, increase
energy security, as well as well create job opportunities for Nigerians.
IN the meantime, the Department of Petroleum Resources
(DPR), yesterday, inaugurated a team of experts to evaluate the revoked four
oil mining licences from Addax Petroleum Exploration Nigeria Limited to new
operators, Kaztech/Slavic Consortium.
The Director, Sarki Auwalu, in a statement signed by Head,
Public Affairs, Paul Osu, said the move was in fulfillment of the Federal
Government’s commitment to reactivating all moribund oil and gas support
facilities across the federation.
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