…SEEPCO says it has invested over $600m
The Nigerian National Petroleum Corporation (NNPC) and Sterling Exploration and Energy Production Company (SEEPCO) have signed an agreement for the development and commercialisation of gas from the Oil Mining Lease, OML 143.
The agreement is expected to sustain the reduction of gas flaring in the country. Speaking at the signing ceremony, group managing director of NNPC, Mele Kyari, said the deal was a great milestone, as well as testament to corporation’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,” Kyari said. He commended SEEPCO for its unwavering commitment to gas development and commercialisation in the country.
For the purpose of this partnership, Kyari said the joint venture has establishment a Special Purpose Vehicle that would help expand gas utilisation in Nigeria as a cleaner, cheaper and more reliable alternative form of energy.
In his comments, the SEEPCO Chairman, Tony Chukwueke, said the deal is important as it would help the company fulfill the pledge it made to support the efforts of the Nigerian federal government to eliminate gas flaring by monetizing the same gas.
Chukwueke described deal 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 dollars for that purpose.
Source: Premium Times