Nigeria’s gas production has received a boost of 1.2 trillion cubic feet following the signing of a Gas Development Agreement (GDA) between the Nigerian National Petroleum Corporation (NNPC) and Sterling Oil Exploration and Production Company (SEEPCO).
Group general manager, group public affairs division of the NNPC, Kennie Obateru, who disclosed this on Thursday, said the gas development and commercialisation programme of the NNPC would see the execution of the Oil Mining Lease (OML) 143 Gas Development Agreement (GDA).
Speaking at the GDA signing ceremony which held at the NNPC Towers, Abuja, the group managing director of the NNPC, Mele Kyari, said the gas commercialisation 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,” Kyari stated.
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He said the development of OML 143 would bring value for the Federal Government, NNPC and SEEPCO Group which, he said, would, in turn, boost the nation’s economy.
On his part, the group managing director of SEEPCO, Tony Chukwueke, described the OML 143 GDA as a milestone for the country because it is 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.
