Page 6 - AfrElec Week 17 2021

AfrElec GAS-FIRED GENERATION AfrElec

NNPC awards concession to SEEPCO for

associated gas development at OML 143

NIGERIA NIGERIAN National Petroleum Corp. (NNPC) you have built,” he remarked. “Of course, this is
has struck a deal with Sterling Oil Exploration a great milestone for us, and we are happy to do
and Production Co. (SEEPCO) on the explora- business with you.”
tion and development of associated gas reserves Kyari also said that he expected the agree-
within the licence area known as OML 143. ment with SEEPCO to support future gas
According to Nigerian press reports, state- development. “This opens a gateway for other
owned NNPC signed an agreement on the opportunities in the oil and gas industry, not just
project with SEEPCO last week. The document [for SEEPCO] but for other companies too,” he
provides for NNPC to serve as concessionaire for commented.
the production-sharing contract (PSC) cover- Tony Chukwueke, the group managing direc-
ing OML 143, a site in the northern Niger River tor of SEEPCO, indicated that his company was
Delta that contains the Anieze and Okwuibome ready to support the efforts of NNPC and the
oilfields. Nigerian government to promote the use of gas.
SEEPCO has said it will send production “SEEPCO is determined to play its role in the
from the licence area, which is believed to hold energy industry in Nigeria,” he said.
1.2 trillion cubic feet (33.98bn cubic metres) of Chukwueke also described his firm’s agree-
associated gas, to its own Ashtavinayak Hydro- ment with NNPC as ground-breaking, explain-
carbon Ltd (AHL) plant for processing. In turn, ing that it was the first such document to include
the AHL facility, which has a capacity of 125mn an explicit requirement for effective manage-
cubic feet (3.54mn cubic metres) per day of ment of costs in a Nigerian project. The inclu-
gas, will turn out dry gas that can be delivered sion of similar language in future contracts has
to power plants and other domestic customers. the potential to help NNPC, the Nigerian federal
One of these customers may be a 650-MW ther- government and other stakeholders save a sub-
mal power plant (TPP) that NNPC and SEEPCO stantial amount of money over time, he said.
hope to build in Delta State. He further stated that SEEPCO had spent
Mele Kyari, NNPC’s group managing direc- about $600mn on the construction of a unit that
tor, said his company was satisfied with the deal. will enable AHL to turn out LPG and gas con-
“We are happy that this will unlock significant densate, as well as dry gas. The plant will be able
volumes of gas, which will deliver 125 mmcf to sell condensate and LPG on Nigeria’s domestic
[3.54 mcm] per day to the midstream plant that market, he said.™

P6 www. NEWSBASE .com Week 17 29•April•2021