By Ademola Mariam Adekemi (SIWES Student, OGITECH)
On Tuesday, the Delta State Government, Nigerian National Petroleum Company Limited (NNPCL), and UTM Offshore Limited finalized a shareholder agreement for Nigeria’s inaugural Floating Liquefied Natural Gas (FLNG) plant. The agreement, signed in Asaba, allocates an 8% stake to Delta state government, 20% to NNPCL, and 72% to UTM Offshore, marking a significant milestone in the project’s advancement.
Representatives of Delta state government, Secretary to the State Government Dr. Kingsley Emu and Solicitor General Mr. Omamuzo Erebe, endorsed the agreement. NNPCL’s Group Chief Executive Officer, Mr. Mele Kyari, and UTM Offshore’s Group Managing Director, Julius Rone, signed on behalf of their respective entities.
During the signing ceremony at Abuja’s NNPC Towers, Delta State Governor Sheriff Oborevwori highlighted the UTM FLNG Project’s status as the first developed by a domestic private company in Nigeria. Governor Oborevwori emphasized the strategic importance of the project to the country’s economy, with Delta’s substantial gas reserves justifying the state government’s 8% stake.
The governor anticipated significant revenue for Delta through the FLNG project, projecting the production of over 300,000 metric tons of LPG (cooking gas) for local use. This initiative aims to reduce environmental impact in the Niger Delta by curbing gas flaring and improving citizens’ well-being through cleaner energy alternatives.
Former Governor Okowa received praise for his foresight in supporting the venture, with acknowledgment extended to regulators, Afreximbank, and the Delta State Investment and Development Agency for facilitating funding.
NNPCL’s Group CEO, Mele Kyari, commended Governor Oborevwori for advocating gas development and investing in the project, emphasizing the collaboration’s potential benefits for the nation.
Minister of State for Petroleum Resources, Ekprikpe Ekpo, stressed the need to monetize the country’s vast gas reserves for economic development.
UTM Group Managing Director Julius Rone expressed optimism, anticipating the Final Investment Decision by the first quarter of 2024.
Rone expressed gratitude to stakeholders, particularly the Delta State Government, for their support and investment, foreseeing positive impacts on infrastructure development and job creation in the region.
