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.
The corporation said this in a statement signed by NNPC spokesman, Dr Kennie Obateru in Abuja on Saturday.
The agreement will help to reduce gas flaring in the country.
The Group Managing Director of NNPC, Malam Mele Kyari, was quoted as saying that the execution of the deal was a great milestone and a testament to NNPC’s commitment to facilitating the nation’s transformation into a gas-powered economy.
“The deal will not only help reduce gas flaring and its environmental hazards, but will also promote gas production and utilisation in the domestic market,” it said.
He commended SEEPCO for its unwavering commitment to gas development and commercialisation in the country.
He said that this had led to the establishment of a Special Purpose Vehicle that would help expand gas utilisation in the country as a cleaner, cheaper and more reliable alternative form of energy.
Responding, SEEPCO Chairman, 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 monetising it.
He commended NNPC and the GMD for ensuring the execution of the agreement.
He described it 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.
He said that the company had invested about 600 million dollars for that purpose.