THE Delta State Government, Nigerian National Petroleum Company Limited (NNPCL) and the UTM Offshore Limited, yesterday, signed a Shareholders Agreement for the development of first Floating Liquefied Natural Gas (FLNG) in the country.
With the agreement, the state government would own eight per cent share of the project, NNPCL 20 per cent and UTM Offshore, 72 per cent.
The government Secretary to the State Government (SSG), Dr. Kingsley Emu, and Solicitor General/Permanent Secretary, Ministry of Justice, Mr. Omamuzo Erebe, signed on behalf of the Delta State Government, while Group Chief Executive Officer, Mr. Mele Kyari, signed for NNPCL and Group Managing Director, Mr. Julius Rone, for UTM Offshore.
Speaking at the signing ceremony at the NNPC Towers in Abuja, Governor Sheriff Oborevwori said the UTM-FLNG Project was the first of its kind to be developed by an indigenous private company in Nigeria, noting that the government took eight per cent equity due to its conviction of the strategic importance of the project to the national economy.
He stated that with 40 per cent of Nigeria’s proven gas reserves in Delta State, it was a worthy investment, adding that the deal marked a significant milestone in the development of the project, even as he expressed hope that construction work would begin next year.
“Of particular interest to Delta State Government is the dividend that this UTM FLNG will generate, thus advancing the socio-economic development of our state. It is expected that over 300,000 metric tonnes of LPG (cooking gas) will be produced and dedicated to the domestic market.
“This project will also help to mitigate the environmental hazards in the Niger Delta by reducing gas flaring. Of course, our women folk will also benefit from the fuel switch from kerosene and firewood to cleaner energy, thus improving their health and general wellbeing.
“This project will create job opportunities for our youths, which is one of the four pillars of our MORE agenda,” the governor stated.
While lauding his predecessor, Dr. Ifeanyi Okowa, for his foresight in investing in the venture, Oborevwori gave kudos to other stakeholders for helping to arrange the project’s financing, particularly staff of Delta State Investment and Development Agency (DIDA) for their resourcefulness”.
Kyari, in his remarks, commended the governor for not just being a promoter of gas development in the country, but also for investing in gas projects.
“We are happy to collaborate with Delta in this venture. The government is here in two capacities, one as a supporter of growing gas utilisation in the country, and also now as an investor in this necessary industry, but potentially valuable industry for all of us,” he added.
Minister of State, Petroleum Resources (Gas), Mr. Ekprikpe Ekpo, said it was time Nigeria began the monitisation of its huge gas reserves for the development of its economy.
Rone, on his part, said the ceremony marks another significant milestone in actualising Nigeria’s first indigenous FLNG, adding that he expects the Final Investment Decision (FID) on the project to be taken before the end of the first quarter of next year.
He commended the stakeholders for their support, especially the Delta State Government for investing in the project, which he said would create other sources of revenue for the state to develop its infrastructure and create employment for the youth of the state.
