NNPC, SEEPCO Seal Pact To Unlock 1.2TCF Gas

The Nigerian National Petroleum Corporation (NNPC) and Sterling Oil Exploration and Production Company (SEEPCO) have signed a pact to unlock 1.2 trillion cubic feet of gas from Oil Mining Lease (OML) 143.

According to the Group Managing Director of the NNPC, Mallam Mele Kyari,the Gas Development Agreement (GDA), is in sync with the Federal Government’s National Gas Expansion Programme (NGEP).

He disclosed yesterday that the resource from the project would be processed at the Ashtavinayak Hydrocarbon Limited’s (AHL) 125 million standard cubic feet (mmscf) of gas per day gas plant located in Kwale, Delta State.

The NNPC boss said the development of OML 143 would bring value for the Federal Government, NNPC and SEEPCO Group that would in turn boost the nation’s economy.

On his part, the Group Managing Director of SEEPCO, Tony Chukwueke, said the pact was a 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 promote holistic development of the gas potential in the block.

He 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.”