TheCable

The Department of Petroleum Resources (DPR) says it has pledged its support for the first floating liquefied natural gas (LNG) production plant licensed to UTM Offshore Limited, a private Nigerian oil and gas company.

Sarki Auwalu, director of DPR, said this at the signing of an agreement with UTM Offshore, its partners on the project, on Tuesday.

DPR had issued the licence to establish (LTE) the plant to UTM Offshore on February 8, 2021.

It said the firm will build a plant with the capacity for processing 176 million cubic feet of gas per day (MMcfd) of natural gas and condensate.

At the virtual event, the pre-front end engineering design (Pre-Feed) contract of the facility was signed between the firm and JGC Corporations, a Japanese engineering company.

UTM Offshore also signed a contract with Kellog Brown & Root (KBR) Engineering Company, a US-based engineering, procurement and construction (EPC) company, to carry out a third-party review of the Pre-Feed deliverables from JGC.

Auwalu said the project is expected to be completed in 2025, adding that the declaration of 2021 to 2030 as the decade of gas was becoming a solid reality with the commencement of preliminary engineering of this LNG production plant.

“The DPR will continue to provide opportunities and enable the businesses of promoters and investors in the oil and gas industry for the economic growth, stability and sustainability of Nigerian and for the mutual benefit of all investors and industry participants,” he said.

“Our licences, permits and approvals will continue to serve as stimulants for value addition and enablers of development.

“Please be assured of the department’s unflagging support to see you through the successful execution of this landmark project in a safe, cost-effective and timeline manner.”

Auwalu further said that DPR would ensure adherence to laws and regulations in a bid to ensure successful development and optimum return on investment.

In his remarks, Julius Rone, managing director of UTM Offshore, applauded the Muhammadu Buhari’s administration for creating an enabling environment for indigenous oil and gas companies to thrive.

Rone expressed optimism that the project would be completed within the stipulated time frame, adding that it would help create job opportunities for Nigerians and boost the country’s economy.