July 9, 2018

NNPC signs agreement for seven critical gas projects


Group Managing Director of the NNPC, Dr Maikanti Baru

The Nigeria National Petroleum Corporation, NNPC, has signed agreements for seven Critical Gas Development Projects (7CGDP) to deliver about 3.4 billion standard cubic feet of gas per day (bscfd) to bridge the foreseen medium term supply gap by 2020 on an accelerated basis.

Group Managing Director of the NNPC, Dr Maikanti Baru

The NNPC, in a statement in Abuja, said the 7CGDP is an integral leg of the gas development strategy designed by the NNPC to leverage the full potential of gas to meet the target of generating at least 15 gigawatts, GW, of electricity by 2020.

The 7CGDP, according to the NNPC include: development of the 4.3 trillion cubic feet (TCF) Assa North/Ohaji South field; development of the 6.4 TCF Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri); and the development of 7.0 TCF NPDC’s OML 26, 30 & 42.

Others, it said include: development of 2.2 TCF Shell Petroleum Development Company (SPDC) JV Gas Supply to Brass Fertilizer Company; cluster development of 5.0 TCF Oil Mining Lease OML, 13 to support the expansion of Seven Energy Uquo Gas Plant; and the cluster development of 10 TCF Okpokunou/Tuomo West (OML 35& 62).
Speaking at the signing ceremony, Group Managing Director of the NNPC, Dr. Maikanti Baru, enthused that the projects would not only bridge the projected shortfall in supply upon completion, but would also signal the beginning of the process of closing demand-supply gap in the domestic gas market.
He said NNPC had engaged two world class project management consultants namely, DeltaAfrik/Worley Parson & Crestech/Penspen who will work with Nigerian Petroleum Development Company, NPDC, and NNPC Joint Venture, JV, partners and other stakeholders to achieve set project deliverables.

He listed some of the responsibilities of the project consultants to include: working with NNPC and partners to revalidate and carry out relevant technical studies to proposed development plans, provide financial advisory services for project funding/financing strategy and appraise the fiscal requirements for viability and advice on interventions that may be required.

“The Project Management Team, PMT, are also expected to study and recommend fast-track tendering process for field development and project implementation, establish realistic cost benchmark(s) for identified projects and develop project schedules and cost estimates for the respective projects among others,” he added.

Baru explained that in addition to the above, the NNPC Project Management groups would strengthen oversight function on the seven (7) critical gas development projects by ensuring prompt decision making and timely approvals in line with international best practices.

The NNPC boss said the Corporation was working closely with other agencies like the Department of Petroleum Resources, DPR, and the Nigerian Content Monitoring and Development Board, NCMDB, among others, to ensure timely approvals for the project and also ensure that lease renewals requests related to these projects were supported for renewals by relevant agency.

Also speaking, Mr. Osagie Okunbor, Managing Director of Shell Petroleum Development Company, SPDC, which is handling three out of the seven projects, pledged the commitment of the company to the successful execution of the 7CGDP, noting that Shell was fully aligned with Nigeria’s gas strategy and aspirations.

The NNPC said the highpoint of the event was the formal execution of agreement for the development of the 6.4 trillion cubic feet unitized gas fields — Samabri-Bisseni, Akri-Oguta, Ubie-Oshi fields by NNPC/Shell and NAOC JV.