Nigerian National Petroleum Corporation (NNPC) and Seplat Petroleum Nigeria Limited partnership is expected to deliver daily 300millon standard cubic of gas per day to the domestic market, the corporation says.
The NNPC disclosed this in a statement issued by its spokesman, Mr Ndu Ughamadu, in Abuja.
He said that the partnership was established with the inauguration of the Asa North/Ohaji South (ANOH) Gas Processing Company.
He said that the partnership would help in bridging projected shortfall in domestic gas supply in the country.
“The project, an integral part of the 7 Critical Gas Development Project (7CGDP) of the NNPC, is designed to abridge the estimated 3.4 billion cubic feet of gas per day shortfall which could arise as demand increases to about 7 bcf/d by 2020,’’ he said..
He added that the Group Managing Director of the NNPC, Dr Maikanti Baru, at the inauguration urged board members to sustain the momentum and ensure timely delivery of the project.
He also urged the board members to not only deliver within budget but below the budget, without compromising the industry best practices of zero incidences.
‘‘We believe that a private sector driven project should deliver much faster, hence we came up with a structure outside the existing Joint Venture with the intent of getting the appropriate entities to participate in the project.’’ he quoted Baru as saying
He noted that NNPC was fully committed to the initiative and would do whatever possible to keep the dream alive and ensure smooth delivery of the project.
Ughamadu added that Mr Saidu Mohammed Chairman of the Board in his remarks, affirmed the determination of the company’s directors to work assiduously with Management to ensure attainment of set tasks and targets.
He noted that Mohammed described the inauguration as history in the making, adding that this was the first time a midstream company had been unbundled to run on its own from a JV operations.
He expressed confidence that board members would ensure full activation of the shareholders agreement and grow the company to enviable heights in line with agreed timelines.
Also, Austin Avuru, Vice Chairman of the Board and Chief Executive Officer of Seplat Petroleum, described the event as memorable for the indigenous firm, Ughamadu said
He noted that under the watch of the NNPC GMD, Seplat and the corporation had made progress in terms of cementing a partnership that is none acrimonious, saying that Dr. Baru had moved that level of support to the current venture.
“Baru has demonstrated his confidence in indigenous operators by allowing a Nigeria Company like Seplat, to strike this kind of JV with NNPC to deliver a project that is not far from a billion USD and to deliver 300mscf/d into the domestic market and to structure a company to do what others may start doing in future – establishing a stand-alone midstream company.’’ he quoted Avuru as saying
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