BY  EMMA UJAH & CCHRIS OCHAYI

Seplat Petroleum and Azura Power Holdings Ltd, yesterday, in Abuja, signed the gas purchase deal for the $750 million Azura Edo Independent Power Plant which will produce 450MW in a drive to boost the nation’s power sector.

The Managing Director of Seplat Petroleum, Mr. Autin Avuru, signed on behalf of his company, while Dr. David Ladipo signed on behalf of the Azura group.

Speaking on the transaction, the Seplta Petroleum boss described it as a new definition of domestic gas investment in the country towards energy security for Nigeria.

His words: “For us, it defines the beginning of our gas business. It defines the beginning of investment in domestic energy security in Nigeria eventhough we have been delivering gas to two power plants in Sapele and Geregu.   Let me say that this is the first gas business we have negotiated on willing buyer willing seller basis.

“For us, it defines the framework between our company and other gas off-takers that will be working with us in the future. As a company we are committed to very heavy investments in domestic gas production and distribution.”

Mr. Avuru disclosed that under the agreement, his company will supply 116 m cf daily to the IPP for 15 years.

According to him, the deal was a demonstration of Seplat’s determination to make gas a significant aspect of the company’s business which he said has targeted 20 per cent gas as a part of its total business outlook.

The event also showcased the $300 million investment being made by Seplat Petroleum Development Company Plc in new gas processing facilities at its Oben Gas Plant, which, as part of Seplat’s joint venture with the Nigerian Petroleum Development Company, will supply the Azura-Edo IPP with the project’s fuel gas requirements. In total, the investments by Azura and Seplat constitute over a $1 billion of local and international financing into the Nigerian gas and power sector.

Avuru said it should be seen as a sense of duty by indigenous companies to invest in domestic energy security just as international energy companies invest all over the world to secure energy in their home countries. Indigenous companies, he said, should invest in domestic energy security and Seplat was proud to be leading that drive.

Seplat is the domestic oil company that operates the Seplat /NPDC Joint Venture that produces over 60, 000 barrels of crude oil per day and a 130 m cf of gas out of Sapele and Oben. Sapele in Delta and Oben in Edo State are the two flagship locations from where Seplat produces.