Following the execution of the Oil Mining Lease (OML) 143 Gas Development Agreement (GDA), the NNPC and its partner, Sterling Oil Exploration and Production Company (SEEPCO) signed an agreement to boost the nation’s gas production by 1.2trillion cubic feet (tcf).
Speaking at the GDA signing ceremony in Abuja, the Group Managing Director of the NNPC, Mallam Mele Kyari, said 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.
He noted that the gas commercialization strategy of the Corporation was in sync with the Federal Government’s National Gas Expansion Programme (NGEP).
“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,” 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 the first Agreement in Nigeria that fully separates gas development from oil production.
He noted that the arrangement would enable the holistic 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.
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