R-L: COO Oando, Ainojie Alex Irune; MD SPDC, Osagie Okunbor; GMD NNPC, Dr. Maikanti Baru; MD Total, Nicolas Terraz and MD NAOC, Fiorillo Lorenzo, during the signing ceremony of the Akri-Oguta, Oshi-Ubie and Obgainbiri-Afuo Unitisation and Unit Operating Agreements between the NNPC, SPDC, NAOC, Oando and Total in Lagos.
A major stride in the attainment of national energy sufficiency was achieved in Lagos with the commencement of technical framing workshop and subsequent project signing ceremony of the seven Critical Gas Development Projects (7CGDP) to deliver about 3.4 billion standard cubic feet of gas per day (bscfd) to bridge the foreseen medium term supply gap by 2020 on an accelerated basis.
The 7CGDP is an integral leg of the gas development strategy designed by the Nigerian National Petroleum Corporation (NNPC) to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020.
In a presentation at the event, Group Managing Director (GMD) of the Corporation, Dr. Maikanti Baru, enthused that the projects would not only bridge the projected shortfall in supply upon completion, but would also signal the beginning of the process of closing demand-supply gap in the domestic gas market.
Baru disclosd that the Corporation had engaged two World Class Project Management Consultants namely DeltaAfrik/Worley Parson & Crestech/Penspen who will work with NPDC and NNPC JV Partners and other stakeholders to achieve set project deliverables.
He listed some of the responsibilities of the project consultants to include: working with NNPC and partners to revalidate and carry out relevant technical studies to proposed development plans, provide financial advisory services for project funding/financing strategy and appraise the fiscal requirements for viability and advice on interventions that may be required.
The PMT are also expected to study and recommend fast-track tendering process for field development and project implementation, establish realistic cost benchmark(s) for identified projects and develop project schedules and cost estimates for the respective projects among others
The GMD explained that in addition to the above, the NNPC Project Management groups would strengthen oversight function on the seven (7) critical gas development projects by ensuring prompt decision making and timely approvals in line with international best practices.
The NNPC boss said the Corporation was working closely with other agencies like the Department of Petroleum Resources (DPR) and the Nigerian Content Monitoring and Development Board (NCMDB), among others, to ensure timely approvals for the project and also ensure that lease renewals requests related to these projects were supported for renewals by relevant agency.
Mr. Osagie Okunbor, Managing Director of Shell Petroleum Development Company (SPDC) which is handling three out of the seven projects, pledged the commitment of the company to the successful execution of the 7CGDP, noting that Shell was fully aligned with Nigeria’s gas strategy and aspirations.
Highpoint of the event was the formal execution of agreement for the development of the 6.4 trillion cubic feet unitized gas fields (Samabri-Bisseni, Akri-Oguta, Ubie-Oshi fields by NNPC/Shell and NAOC JV.
The 7CGDP include: development of the 4.3 trillion cubic feet (TCF) Assa North/Ohaji South field; development of the 6.4 TCF Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri); and the development of 7TCF NPDC’s OML 26, 30 &42.
Others include: development of 2.2 TCF Shell Petroleum Development Company (SPDC) JV Gas Supply to Brass Fertilizer Company; cluster development of 5 TCF OML 13 to support the expansion of Seven Energy Uquo Gas Plant; and the cluster development of 10 TCF Okpokunou/Tuomo West (OML 35& 62).
Meanwhile the NNPC also provided insight into the fire incident which ravaged parts of the PPMC Depot in Minna, Niger State. Speaking to journalists on the sidelines of the 7CGDP launch in Lagos, the GMD said the fire incident which started late in the night after the collapse of the floating roof of one of the petrol storage tanks had since been brought under control.
He thanked members of the neighbouring communities, the security agencies and emergency services for their support and prompt response.