The Nigerian National Petroleum Corporation (NNPC) has signed a Gas Development Agreement (GDA) with Sterling Oil Exploration and Production Company (SEEPCO) for the execution of the Oil Mining Lease (OML) 143.
Malam Mele Kyari, NNPC Group Managing Director, disclosed this in a statement by the Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, in Abuja on Thursday.
He disclosed that the project would boost the nation’s gas production by 1.2trillion cubic feet (tcf).
Kyari said that the gas commercialisation strategy of the Corporation was in line with the National Gas Expansion Programme (NGEP).
He added that the gas from the project would be processed at the Ashtavinayak Hydrocarbon Limited (AHL) 125million 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 will unlock significant volumes of gas which will 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 stated.
The Group Managing Director of SEEPCO, Mr Tony Chukwueke, said that the GDA was the first Agreement in Nigeria that fully separates gas development from oil production.
He said that the arrangement would enable 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.
“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,” he said.
The GDA 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 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.
It will also boost in-country supply of Liquefied Petroleum Gas (LPG) and general domestic gas utilisation, increase energy security, and create job opportunities for Nigerians.
NAN
