NNPC, SEEPCO Sign Deal to Monetise OML 143

By Adedapo Adesanya

A deal to develop and commercialise the Oil Mining Lease (OML) 143 has been signed by the Nigerian National Petroleum Corporation (NNPC) and Sterling Exploration and Energy Production Company (SEEPCO).

The contract for the project was sealed at the NNPC Towers, Abuja on Friday and it will improve the supply of gas in the country and help boost the country revenue.

The Group Managing Director of NNPC, Mr Mele Kyari, described the execution of the deal as a great milestone as well as a testament to the agency’s commitment to facilitating the nation’s transformation into a gas-powered economy.

He said the deal would not only help reduce gas flaring and its environmental hazards but would also promote gas production and utilisation in the domestic market.

The NNPC chief also commended SEEPCO for its unwavering commitment to gas development and commercialisation in the country which has led to the establishment of a Special Purpose Vehicle (SPV) that will help expand gas utilisation in the country as a cleaner, cheaper and more reliable alternative form of energy.

On his part, the Chairman of SEEPCO, Mr Tony Chukwueke, described the partnership as essential because it would help the company fulfil the pledge it made to support the efforts of the Nigerian government to eliminate gas flaring by monetising it.

He commended the national oil company for ensuring the execution of the agreement which he further described as central to the achievement of the organisation’s cardinal objective of boosting the production of Liquefied Petroleum Gas (LPG), condensate and dry gas for the Nigerian market, adding that SEEPCO has invested about $600 million for that purpose.