The Nigerian National Petroleum Corporation (NNPC) and Sterling Oil Exploration and Production Company (SEEPCO) have signed an agreement for the execution of the Oil Mining Lease (OML) 143.
The Corporation’s Group General Manager, Public Affairs Division, Dr. Kennie Obateru, disclosed that the project would boost Nigeria’s gas production by 1.2 trillion cubic feet (tcf), in a statement on Thursday.
The Group Managing Director of the NNPC, Mallam Mele Kyari, who spoke at the signing ceremony said the gas commercialisation strategy of the corporation aligned with the Federal Government’s National Gas Expansion Programme (NGEP).
He stated that125 million standard cubic feet (mmscf) of gas per day that would be produced from the project would be processed at the Ashtavinayak Hydrocarbon Limited (AHL) 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 will unlock significant volumes of gas which will deliver 125mmscfd to the Midstream plant that you have built,” Kyari stated.
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,” he added.
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He said the development of OML 143 would bring value for the Federal Government, NNPC and SEEPCO Group which would in turn boost the nation’s economy.
On his part, the Group Managing Director of SEEPCO, Mr. Tony Chukwueke, described the OML 143 gas development agreement as a major milestone for the country, as it was the first agreement in Nigeria that fully separates gas development from oil production.
According to him, the arrangement will enable a holistic development of the gas potential in the block.
Chukwueke described the partnership as a significant step, saying it was the first of its kind to expressly include terms that encourage the contractor to be effective in cost management thereby passing on significant revenue to the Federal Government, NNPC and other stakeholders.
“I will like to take this opportunity to thank the GMD, NNPC for his contribution to Nigeria and also recommit that SEEPCO is determined to play its role in the energy industry in Nigeria,” SEEPCO MD stated.
The project had been designed to raise the Nigeria’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 utilisation, increase energy security, and create job opportunities for Nigerians.
The Gas Development Agreement is required, pursuant to the Production Sharing Contract 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 is the Concessionaire.
