The Nigerian National Petroleum Corporation (NNPC) has signed an agreement with Sterling Exploration and Energy Production Company (SEEPCO) for the development and commercialization of gas from the Oil Mining Lease (OML) 143 that could help reduce gas flaring in the country.
The deal was sealed at a ceremony held at the NNPC Towers in Abuja, a statement by NNPC’s spokesman, Dr Kennie Obateru disclosed on Saturday.
The Group Managing Director of NNPC, Malam Mele Kyari, who spoke at the ceremony, described the execution of the deal as a great milestone as well as a testament to NNPC’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 utilization in the domestic market.
He commended SEEPCO for its unwavering commitment to gas development and commercialization in the country which has led to the establishment of a Special Purpose Vehicle that will help expand gas utilization 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 deal as an essential partnership that would help the company fulfill the pledge it made to support the efforts of the Nigerian government to eliminate gas flaring by monetizing it.
He commended NNPC and the GMD for ensuring the execution of the agreement which he described central to the achievement of the company’s cardinal objective of boosting the production of Liquefied Petroleum Gas (LPG), condensate and dry gas for the Nigerian market, adding that the company has invested about $600 million for that purpose.