NNPC, SEEPCO sign Gas Development Agreement to unlock 1.2TCF
The Nigerian National Petroleum Corporation @NNPCgroup and Sterling Oil Exploration & Energy Production Company Limited #SEEPCO, both partners in the Oil Mining Lease (OML) have signed a Gas Development Agreement to boost the country’s gas production by 1.2 trillion cubic feet (tcf).
“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“, said Mallam Mele Kolo Kyari, Group Managing Director of the NNPC.
OML 143: @NNPCgroup, SEEPCO Sign Gas Devt Agreement to Unlock 1.2TCF
A statement by the GGM, Group Public Affairs Division, Dr. Kennie Obateru, disclosed that the project would boost the nation’s gas production by 1.2trillion cubic feet (tcf).
https://t.co/IovDFRpjeW— NNPC Group (@NNPCgroup) April 24, 2021
On his part, the Group Managing Director of SEEPCO, Mr. Tony Chukwueke, said the OML 143 GDA is a major milestone for the country because it was the first Agreement in Nigeria that fully separates gas development from oil production, noting that the arrangement would enable holistic development of the gas potential in the block.
The Gas Development Agreement is required, pursuant to the Production Sharing Contract obligations, to set out the terms for the development of the 1.2tcf Non-Associated Gas oil block by SEEPCO, which is the Contractor with the NNPC as the Concessionaire.
The additional gas supply from the project would raise the nation’s gas production profile, make dry gas available for the proposed 650 megawatts NNPC/SEEPCO Independent Power Plant, boost in-country supply of Liquefied Petroleum Gas and general domestic gas utilization, increase energy security, and create job opportunities for Nigerians.
Amaka E. Nliam
