TheCable

The Nigerian National Petroleum Corporation (NNPC) and Sterling Exploration and Energy Production Company (SEEPCO) have both signed an agreement for the development and commercialisation of gas from the oil mining lease (OML) 143.

Speaking at the signing ceremony held at the NNPC Towers, Mele Kyari, the group managing director of NNPC, described the execution of the deal as a great milestone, as well as a testament to NNPC’s commitment to facilitating the nation’s transformation into a gas-powered economy.

Kyari said the deal would not only help reduce gas flaring and its environmental hazards, it would also promote gas production and utilisation in the domestic market.

The GMD also commended SEEPCO for its unwavering commitment to gas development and commercialisation in the country, which has led to the establishment of a special purpose vehicle (SPV) that will help expand gas utilisation in the country as a cleaner, cheaper, and more reliable alternative form of energy.

Tony Chukwueke, chairman of SEEPCO, 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.

Chukwueke commended NNPC and the GMD for ensuring the execution of the agreement, which he described 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 added that the company has invested about $600 million for that purpose.

OML 143, located in thickly forested terrain in the northern Niger Delta, contains two producing fields, Okwuibome – discovered by Shell in 1979 – and the smaller Anieze field.