The gas development and commercialization programme of the
Nigerian National Petroleum Corporation (NNPC) received a boost
Thursday 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).
![image](/2021/04/NEMBE-LAWYERS.jpg")
A statement by the Group General Manager, Group Public Affairs
Division, Dr. Kennie Obateru, disclosed that the project would
boost the nation’s gas production by 1.2trillion cubic feet
(tcf).
![image](/2021/01/payne-alex.jpg")
Speaking at the GDA signing ceremony which held at the NNPC
Towers, Abuja, the Group Managing Director of the NNPC, Mallam Mele
Kyari, said the gas commercialization strategy of the Corporation
was in sync with the Federal Government’s National Gas Expansion
Programme (NGEP), adding 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,” Mallam Kyari stated.
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, said the OML 143 GDA is a major 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 enable wholistic development of the gas potential
in the block.
He further 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.
“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,”
Tony Chukwueke reassured.
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 utilization, increase energy security, and create job
opportunities for Nigerians.
The gas development and commercialization programme of the
Nigerian National Petroleum Corporation (NNPC) received a boost
Thursday 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).
A statement by the Group General Manager, Group Public Affairs
Division, Dr. Kennie Obateru, disclosed that the project would
boost the nation’s gas production by 1.2trillion cubic feet
(tcf).
Speaking at the GDA signing ceremony which held at the NNPC
Towers, Abuja, the Group Managing Director of the NNPC, Mallam Mele
Kyari, said the gas commercialization strategy of the Corporation
was in sync with the Federal Government’s National Gas Expansion
Programme (NGEP), adding 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,” Mallam Kyari stated.
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, said the OML 143 GDA is a major 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 enable wholistic development of the gas potential
in the block.
He further 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.
“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,”
Tony Chukwueke reassured.
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 utilization, increase energy security, and create job
opportunities for Nigerians.