Delta state government, in collaboration with the Nigerian National Petroleum Company Limited (NNPC) and UTM Offshore Ltd, has sealed a historic deal by signing a shareholders agreement to establish Nigeria’s inaugural Floating Liquefied Natural Gas (FLNG) project.
Representatives, including Secretary to the State Government Dr Kingsley Emu, Solicitor General and Permanent Secretary Ministry of Justice Omamuzo Erebe, signed on behalf of the Delta State Government.
NNPC Limited’s Group CEO, Mele Kyari, and UTM Offshore’s Group Managing Director, Julius Rone, signed for their respective entities.
Under the agreement, Delta State Government secures an 8% ownership stake in the project, with NNPC Limited owning 20% and UTM Offshore securing the lion’s share of 72%.
Governor Sheriff Oborevwori of Delta State hailed the UTM FLNG Project as a pioneering initiative developed by an indigenous private entity within Nigeria.
He emphasized the project’s strategic significance to the nation’s economy, citing Delta State’s vast gas reserves, accounting for 40% of Nigeria’s proven gas reserves, as a compelling reason for the state’s investment.
Governor Oborevwori underscored the project’s multifaceted benefits, envisioning substantial dividends for the state’s socio-economic growth, reducing environmental hazards by curbing gas flaring, and improving health outcomes for residents, particularly women, by shifting to cleaner energy sources.
On his part, Kyari of NNPC highlighted the significance of collaborating with Delta in the venture, recognizing the state government’s role as both an advocate for increased gas utilization and an investor in this vital industry.
The Minister of State Petroleum Resources (Gas), Ekprikpe Ekpo, emphasized the importance of leveraging Nigeria’s extensive gas reserves for economic development.
Julius Rone of UTM Offshore hailed the signing as a pivotal step towards actualizing Nigeria’s inaugural indigenous FLNG project. He expressed confidence in finalizing the project’s investment decision by the second quarter of 2024.
Rone praised the Delta state government for its investment, anticipating its positive impact on revenue generation, infrastructure development, and job creation for its youth.
Experts say the agreement signals a momentous leap towards utilizing Nigeria’s abundant gas resources for economic advancement and environmental sustainability.
