By Teddy Nwanunobi
Partners in the Oil Mining Lease (OML) 143, Nigerian National Petroleum Corporation (NNPC) and Sterling Exploration and Energy Production Company (SEEPCO), on Thursday in Abuja, signed a Gas Development Agreement (GDA).
“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). #DecadeofGas,” NNPC tweeted on Thursday.
It would be recalled that on September 26, 2020, both parties signed an agreement for the development and commercialisation of gas from the Oil Mining Lease (OML) 143.
According to a statement signed by NNPC spokesman, Kennie Obateru, NNPC said that the agreement would help reduce gas flaring in the country.
The Group Managing Director (GMD), Mallam Mele Kyari, was quoted as saying that the execution of the deal was a great milestone and a testament to NNPC’s commitment to facilitating the nation’s transformation into a gas-powered economy.
“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.
In his response, 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.
He described it as central to the achievement of the company’s cardinal objective of boosting the production of Liquefied Petroleum Gas (LPG), condensate and dry gas for the Nigerian market.
He said that the company had invested about $600 million for that purpose.