The Nigerian National Petroleum Corporation (NNPC) on Thursday executed the Oil Mining Lease (OML) 143 Gas Development Agreement (GDA) with Sterling Oil Exploration and Production Company (SEEPCO) to explore 1.2 trillion cubic feet (tcf) of gas.
In a statement by NNPC on the pact signing ceremony at the NNPC Towers, Abuja Thursday, on Thursday, the NNPC Group Managing Director, Mallam Mele Kyari, said the gas from the project would be processed at the Ashtavinayak Hydrocarbon Limited (AHL) 125 million standard cubic feet (mmscf) of gas per day gas plant located in Kwale, Delta State.
“This opens a gateway for other opportunities in the Oil and Gas Industry, not just SEEPCO Group but for other companies too. We are happy that this will unlock significant volumes of gas which will deliver 125mmscfd to the Midstream plant that you have built. Of course, this is a great milestone for us and we are happy to do business with you. You are a very reliable partner because when you say things, you get them done,” Mallam Kyari stated.
The Group Managing Director of SEEPCO, Mr Tony Chukwueke, said 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.
“I would like to take this opportunity to thank the GMD, NNPC for his contribution to Nigeria and also recommit that SEEPCO is determined to play its role in the energy industry in Nigeria,” he said.