NNPC, SEEPCO sign agreement to reduce gas flaring
The Nigerian National Petroleum Corporation (NNPC) and Sterling Exploration and Energy Production Company (SEEPCO) have signed an agreement for the development and commercialisation of gas from the Oil Mining Lease (OML), 143 to help reduce gas flaring in the country.
It said that apart from reduction of gas flaring and its environmental hazards, the deal would also promote gas production and utilization in the domestic market.
This was contained in a statement issued by Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division.
The statement quoted the NNPC Group Managing Director, Malam Mele Kyari, as describing execution of the deal as a great milestone as well as a testament to the Corporation’s commitment to facilitating the nation’s transformation into a gas-powered economy.
He also commended SEEPCO’s commitment to gas development and commercialization in the country which has led to the establishment of a Special Purpose Vehicle that will help expand gas utilization in the country as a cleaner, cheaper and more reliable alternative form of energy.
On his part, the Chairman of SEEPCO, Mr. Tony Chukwueke, described the deal as an essential partnership that would help the company fulfill the pledge it made to support the efforts of the Nigerian government to eliminate gas flaring by monetizing it.
He commended NNPC and the GMD for ensuring the execution of the agreement which he described central to the achievement of the company’s cardinal objective of boosting the production of Liquefied Petroleum Gas (LPG), condensate and drygas for the Nigerian market, adding that the company has invested about $600million for that purpose.