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, a deal capable of boosting Nigeria’s economy by $600 million.
The NNPC and SEEPCO signed off on the agreement for the monetisation of Oil Mining Lease (OML) 143 in Abuja, a development the corporation says will help increase its footprints in the downstream gas market and boost the country’s revenue accruals from gas.
In a tweet on Thursday, NNPC said the development provides the terms for the development of OML 143 in providing gas for the domestic market which aligns with the federal government’s national gas expansion programme (NGEP).
“NNPCgroup, #SEEPCO, both partners in the Oil Mining Lease (OML) 143 have signed a Gas Development Agreement (GDA) at the NNPC Towers today.
“This latest milestone provides the terms for the development of OML 143 Gas, providing gas for the domestic market which aligns perfectly with the Federal Government’s National Gas Expansion Programme (NGEP),” the tweet said.
The agreement was signed by Mele Kyari, the group managing director of NNPC, and Tony Chukwueke, chairman of SEEPCO.
In September, both parties had signed an agreement for the development and commercialisation of gas from the OML 143.
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Kyari had said the deal would not only help reduce gas flaring and its environmental hazards, but it would also promote gas production and utilisation in the domestic market.
“The deal will not only help reduce gas flaring and its environmental hazards but will also promote gas production and utilisation in the domestic market,” it said.
He commended SEEPCO for its unwavering commitment to gas development and commercialisation in the country.
He said that this had led to the establishment of a Special Purpose Vehicle that would help expand gas utilisation in the country as a cleaner, cheaper, and more reliable alternative form of energy.
Responding, SEEPCO Chairman, 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 monetising it.
Nigeria has the largest gas reserves in Africa and the ninth-largest in the world but only about 25 percent of the reserves are being produced. The country’s total gas reserves stood at 203.16 trillion cubic feet as of January 1, 2020, up from 202Tcf in 2019, according to the Department of Petroleum Resources.
