Nigeria pens gas development deal
Nigerian National Petroleum Corp (NNPC) and Lagos-based Sterling Oil Exploration & Energy Production Co (SEEPCO) signed an agreement April 22 to develop gas at the OML 143 block in the northern Niger Delta.
"This latest milestone provides the terms for the development of OML 143's gas, providing gas for the domestic market which aligns perfectly with the federal government's national gas expansion programme," NNPC said on social media.
OML 143 contains two fields that produce oil. The new development agreement aims to exploit some 1.2 trillion ft3 of non-associated gas at the site, with SEEPCO serving as contractor and NNPC as concessionaire. Gas produced from the block will go to a 125mn ft3/day processing plant in the Delta state and then used as fuel at a 650-MW power plant NNPC and SEEPCO plan to build.
Nigeria wants to expand the role of gas in its economy, replacing more expensive and dirtier fuels such as diesel in areas like power generation, heating, motor transport and home cooking. It also wants to expand its gas-based petrochemicals sector and increase LNG exports. The country has over 190 trillion ft3 in proven reserves, according to BP.