NNPC, SEEPCO Sign Gas Development Agreement For OML 143

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 Oil Mining Lease (OML) 143. Group Managing Director of NNPC, Mele Kyari, disclosed this in a statement by the corporation’s Group General Manager, Group Public Affairs Division, Dr Kennie Obateru in Abuja. He disclosed that the project would boost the nation’s gas production by 1.2 trillion cubic feet (tcf), adding that the corporation’s gas commercialisation strategy 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) 125 million standard cubic feet (mmscf) of gas per day gas plant in Kwale, Ndokwa West Council of Delta State. “This opens a gateway for other opportunities in the Oil and Gas Industry, not just SEEPCO Group but for other companies too and 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 reliable partner because when you say things, you get them done,” Kyari stated.

Speaking, Group Managing Director of SEEPCO, Tony Chukwueke, said that the GDA was the first agreement in Nigeria that fully separates gas development from oil production adding 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 would also boost the in-country supply of Liquefied Petroleum Gas (LPG) and general domestic gas utilisation, increase energy security and create job opportunities for Nigerians.