Mr. Tony Chukwueke, Group Managing Director of SEEPCO, and Malam Mele Kyari, Group Managing Director of NNPC, at Signing of OML 143 Gas Development Deal in Abuja, FCT

NNPC, SEEPCO sign OML 143 gas development agreement to unlock 1.2tcf

*The Nigerian National Petroleum Corporation says execution of the Oil Mining Lease 143 Gas Development Agreement by the Corporation and Sterling Oil Exploration and Production Company opens up other opportunities for both SEEPCO Group and other companies in the oil and gas sector

Emmanuel Akosile | ConsumerConnect

The gas development and commercialisation programme of the Nigerian National Petroleum Corporation (NNPC) has received a boost with the execution of the Oil Mining Lease (OML) 143 Gas Development Agreement (GDA) by the NNPC and its partner, Sterling Oil Exploration and Production Company (SEEPCO).

Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division of NNPC, in a statement Thursday, April 22, 2021, in Abuja, FCT, disclosed that the project would boost the nation’s gas production by 1.2trillion cubic feet (tcf).

Malam Mele Kyari, Group Managing Director (GMD) of the NNPC, while speaking at the GDA signing ceremony held at the NNPC Towers, in Abuja, said the gas commercialisation strategy of the Corporation was in sync with the Federal Government’s National Gas Expansion Programme (NGEP).

The NNPC Chief noted 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.

Malam Kyari stated: “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 further stressed that the development of OML 143 would bring value for the Federal Government, NNPC and SEEPCO Group, which would, in turn, boost the country’s economy.

Mr. Tony Chukwueke, Group Managing Director of SEEPCO, also stated the OML 143 GDA is a major milestone for the country because it is the first agreement in Nigeria that fully separates gas development from oil production.

The SEEPCO GMD noted that the arrangement would enable holistic development of the gas potential in the block.

Chukwueke further explained that the GDA is a significant step in that it is 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.

He said: “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.”

The statement added that 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.

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 utilisation, increase energy security, and create job opportunities for Nigerians, it stated.

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