The Nigerian National Petroleum Corporation (NNPC) and Chevron Nigeria Ltd (CNL) Operator of the NNPC/Chevron Joint Venture have reached agreements on the Escravos Gas-To-Liquid (EGTL) Project.
The EGTL Project Settlement Agreements entered into by NNPC and CNL are expected to boost Nigeria’s domestic gas utilisation.
The settlement agreements were signed at the NNPC headquarters in Abuja on December 24, 2019, on behalf of the two companies by Mele Kyari, Group Managing Director of the NNPC and Monday Ovuede, Director of the NNPC/CNL Joint Venture, representing Jeffrey Ewing, Chairman/Managing Director of CNL.
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In a statement by Esimaje Brikinn, General Manager, Policy Government & Public Affairs, CNL said under the new agreement, the EGTL interest would be aligned with the Joint Venture Upstream interest at NNPC 60 per cent: CNL 40 per cent with CNL as Operator of the asset.
According to Brikinn, the NNPC Group Managing Director, Ewing appreciated the NNPC and CNL teams and the Senate who were involved in the resolution process, for the successful resolution of the EGTL project costs dispute, while thanking President Muhammed Buhari for approving the resolution.
Mr Ewing, Brikinn further quoted, said the EGTL was an important asset that will see CNL supply an average of 400mmscf/day, the equivalent of 26 per cent total domestic gas supply, the highest by any IOC in the domestic market.
“In all, the EGTL will bring loads of benefit to the Nigerian economy as well as to CNL: energy supply, improved gas utilisation, fiscal receipts and a renewed social license to operate,” he added
Speaking on behalf of CNL, Monday Ovuede, according to Brikinn, the executed agreements had resolved historical disagreements between NNPC and CNL related to the EGTL project and also signalled the implementation of a new governance model.
Mr Ovuede, he noted, added that EGTL is part of an integrated gas development strategy, along with the Escravos Gas Project (EGP3).
“EGTL together with EGP3 provides a reliable flares-out solution and remains a critical part of the overall NNPC/CNL Joint Venture gas commercialisation strategy,” he was said to have explained.
Mr Ovuede was said to have further expressed the commitment of CNL to the efficient and safe operation of the EGTL and the development of the petroleum industry in Nigeria.
It will be recalled that the EGTL plant, located in Escravos, in the Western Niger Delta region, started technical operations in 2014.
It is designed to convert feed gas from the JV fields to high-quality diesel and naphtha with a maximum output of 33, 200 barrels per day.
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