Nigeria gas sector has witness major milestone in the area of harnessing its abundant economic resources. In a major step towards bolstering Nigeria’s energy security and promoting the utilization of its abundant gas resources, the NNPC Ltd. and UTM Offshore Limited have reiterated their utmost commitment towards actualization of the Nigeria Decade of Gas come to reality. This unprecedented feat was recently performed in Abuja, Nigeria by the signing of a Heads of Terms (HoT) agreement for the construction of the nation’s first indigenous Floating LNG project.
Describing the Floating LNG project as a “must-do” initiative for Nigeria, the NNPC Ltd. GCEO Mallam Kyari Mele Kolo expressed the company’s readiness to secure gas feedstock towards the project. Mr. Kyari has umpteen times emphasized that the new NNPCL is now more as potential competitor in the global energy sector than a regulator and that the company is rightly positioned to partner with any serious minded company to make profit. He stated this at just concluded NOG Energy Week 2023 while calling potential investors to invest in gas pipeline infrastructure to enable the delivery of gas to surface for onward utilization.
Also speaking at the ground breaking event is the Group Managing Director, UTM Offshore Ltd., Julius Rone. He expressed his delight at the partnership with NNPC Ltd., stating that this milestone achievement showcased the capability of indigenous companies to collaborate with world-class energy conglomerates to drive growth in Nigeria’s energy sector. He further explained that apart from significantly cutting down on gas flaring and supporting the country’s commitment to reducing carbon emissions, the project would also create over 7,000 job opportunities, contributing to the nation’s economic growth and development.
In his remarks, NNPC Ltd.’s Executive Vice President, Gas, Power & New Energy, Mohammed Abdulkabir Ahmed, said the project aligned perfectly with NNPC Ltd.’s goals of ensuring energy availability, affordability, and sustainability while also generating revenue through exports.
The FLNG vessel is designed to produce 176 million cubic feet of gas per day from the Yoho Field. The agreement lays out the terms of the NNPC’s 20% equity contribution of the FLNG project, and represents a milestone in advancing domestic gas utilization in Nigeria. The Yoho field lies in Oil Mining Lease (OML) 104, offshore Nigeria. ExxonMobil’s subsidiary MPN holds a 40% interest in the joint venture and the Federal Government of Nigeria holds the remaining 60% interest through the Nigerian National Petroleum Corporation (NNPC. In 2021Nigeria awarded a licence to install a floating liquefaction (FLNG) unit at its Yoho oil field to a domestic infrastructure firm UTM Offshore, Nigerian legal firm Templars. Yoho, which started crude production in 2003, is due to move into a blow down phase — removing reinjected gas that was used for enhanced oil recovery — in the coming few years as crude output from the depleting resource slows. This gas is expected to be commercialised through liquefaction. ExxonMobil subsidiary MPN holds a 40pc stake and operatorship in the field, while Nigerian state-owned oil company NNPC holds the remaining 60pc.
