OML 143: NNPC, SEEPCO sign gas development agreement

The Nigerian National Petroleum Corporation (NNPC) and Sterling Exploration and Energy Production Company (SEEPCO) have signed an agreement for the development of gas from the oil mining lease (OML) 143.

Both partners signed the agreement at the NNPC Towers in Abuja on Thursday.

The agreement was signed by Mele Kyari, the group managing director of NNPC, and Tony Chukwueke, chairman of SEEPCO.

In a tweet, NNPC said the development provides the terms for the development of OML 143 in providing gas for the domestic market which aligns with the federal government’s national gas expansion programme (NGEP).

“NNPCgroup, #SEEPCO, both partners in the Oil Mining Lease (OML) 143 have signed a Gas Development Agreement (GDA) at the NNPC Towers today.

“This latest milestone provides the terms for the development of OML 143 Gas, providing gas for the domestic market which aligns perfectly with the Federal Government’s National Gas Expansion Programme (NGEP).”

This latest milestone provides the terms for the development of OML 143 Gas, providing gas for the domestic market which aligns perfectly with the Federal Government's National Gas Expansion Programme (#NGEP).#DecadeofGas pic.twitter.com/rJQFIyKIRD

Advertisement

— NNPC Limited (@nnpclimited) April 22, 2021

In September, both parties had signed an agreement for the development and commercialisation of gas from the OML 143.

Kyari had said the deal would not only help reduce gas flaring and its environmental hazards, it would also promote gas production and utilisation in the domestic market.

Meanwhile, Timipre Sylva, minister of state for petroleum resources, had declared 2021 as the beginning of Nigeria’s decade of gas.

Speaking at a public hearing on gas flaring in February, the minister said the federal government is committed to achieving the global consensus on the elimination of gas flaring by 2025.

“Today, we have actually reduced gas flaring significantly to a very minimal level of eight per cent. If you all recall, in 2020, the ministry of petroleum started what we call the National Gas Expansion Programme and we declared year 2020 as the year of gas,” Sylva had said.

“At the beginning of this year, we also declared year 2021 the beginning of the gas decade. We believe that with all the programmes we have in place, we are on course to achieving complete elimination of gas flaring by year 2025.”