Nigeria’s President Goodluck Jonathan last Thursday commissioned a N90 billion ($600m) gas processing facility at Uquo in Akwa Ibom State located in Nigeria’s oil-rich Niger-Delta region.
The Uquo Field was one of the 24 marginal fields awarded in 2003 to indigenous companies by Nigeria’s Department of Petroleum Resources (DPR) as part of the government’s Marginal Field Programme aimed at increasing reserves, production, employment, local content and indigenous participation in the upstream oil and gas sector.
Owned by Accugas Ltd, a wholly owned subsidiary of indigenous company, Seven Energy International Limited headquartered in Lagos and London. The gas plant commenced gas deliveries in early 2014 to the 190 megawatts (MW) Ibom Power Station.
“With the addition of deliveries to the 560MW Calabar NIPP power station, it will provide steady gas supply for more than 10 percent of Nigeria’s power generation capacity,” the CEO of Seven Energy, Phillip Iheanacho said, adding that the company has 1.3 trillion cubic feet (“Tcf”) of long-term gas sales agreements, with a duration of between 10 and 20 years in place.
Commending Seven Energy and its Joint Venture partner, Frontier Oil Limited, President Jonathan said the project would significantly impact on Nigeria’s aspiration for sustainable power supply as well as create much needed employments.
“We are happy with what we have seen today”, Jonathan enthused. “Seven Energy and Frontier Oil deserve commendation for combining their individual capacities to deliver this project, which will have multiplier effect on the economy such as increasing national power output, employment opportunities for the host communities and Nigerians and additional revenue for both the Federal Government and Akwa Ibom State, he added.
Describing the Uquo gas plant one of the biggest projects of its nature undertaken by an independent company in sub-Saharan Africa, Philip Iheanacho disclosed that Seven Energy provided the technical services and 100 percent funding for the gas facility and transportation infrastructure at a cost of N90 billion ($600 million). [eap_ad_2]This, he says, attests to the growing capacity of indigenous operators in Nigeria in line with the Federal Government’s policy of increasing indigenous participation in the oil and gas sector.
Philip Ihenacho, who founded London-based investment banking firm Afrinvest (UK) Limited, said the Uquo gas project reflected the company’s unique focus on the emerging Nigerian domestic gas market. He stated that Nigeria has an immense gas potential, which remains largely untapped for both power generation and industrial use.
“We are happy to see our investment culminate in the commissioning of this facility, which will support government’s effort to improve power supply, create job opportunities for Nigerians and impact other sectors of the economy”, he added.
Commenting on the project, Akwa Ibom State Governor, Godswill Akpabio, said the state was happy to provide the right environment for both Seven Energy and Frontier Oil to operate.
“Akwa Ibom is a peaceful state and business friendly. We are a partner that corporate organisations want to work with. As you can see today, through our vision and partnership with these companies, we are achieving great things for both Nigeria and Akwa Ibom State” Akpabio governor enthused. He added that Akwa Ibom State government and its partners are leading the way in addressing Nigeria’s power problem through the production of natural gas, assuring Seven Energy and Frontier Oil of the state government’s continued support. (VENTURES AFRICA)[eap_ad_3]
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