The Nigerian National Petroleum Corporation (NNPC) and Sterling Exploration and Energy Production Company (SEEPCO) have signed an agreement for the development and commercialisation of gas from the Oil Mining Lease (OML) 143 that could help reduce gas flaring in the country.
Speaking at the agreement signing ceremony which held at the NNPC Towers, Mele Kyari, the Group Managing Director of NNPC, described 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.
Mr Kyari said the agreement would not only help reduce gas flaring and its environmental hazards, but would also promote gas production and utilization in the domestic market.
The NNPC chief praised 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.
Chairman of SEEPCO Tony Chukwueke, who is also a former director of the Department of Petroleum Resources, said that the agreement was an 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 praised the NNPC for ensuring the execution of the agreement which he described as 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.