A total of $700 million is expected to be raised by the duo of Seplat Petroleum Development Company and the Nigerian National Petroleum Corporation (NNPC) for a gas project scheduled to commence production in 2020.

According to Bloomberg, the gas plant, Assa North-Ohaji South, is being constructed to reduce Nigeria’s reliance on oil.

ANOH Gas Processing Company, which is owned by Seplat Plc and the Nigerian Gas Company, a unit of NNPC, will develop, build and operate the plant in Imo State.

Nigeria is Africa’s biggest producer of crude oil, but the new project is one of seven to boost gas production and infrastructure development in the country.

“Seplat and Nigerian Gas will provide 60 percent of the funds as equity, while ANOH will source the balance as debt,” Bloomberg reports.

“Both parties already have each contributed $100 million in equity.

“There will be another equity injection and at the back end of it will be debt,” the respected journal quoted the CEO of Seplat, Mr Austin Avuru, as saying in an interview on Wednesday in Lagos.

According to him, the plant, which will process wet gas from the unitized upstream fields at OML 53 and OML 21, has an initial capacity of 300 million standard cubic feet per day. It’s scheduled to begin production by the last quarter of 2020 and the first supply is targeted in 2021.

Nigeria’s government is encouraging investments in gas infrastructure to improve supplies to power companies and diversify the economy away from oil, which currently accounts for the bulk of revenue.

ANOH will target local customers and has the capacity to double production “depending on domestic demand and the availability of feeds including third-party gas,” Avuru said.

Lagos-based Seplat, meanwhile, will more than double capital spending to $200 million this year from 2018 as it seeks to take advantage of “relative stability’’ in the Niger Delta region, he said. “If Niger Delta is stable, the rest is easy for us to handle.’’

The firm, which is listed on the London and Nigerian exchanges, will spend about 70 percent of its capital budget on drilling after a three-year lull, Avuru said. The rest will be for “facilities and gas development.”

Seplat is targeting output of 49,000 to 52,000 barrels of oil equivalent a day this year and “will probably start seeing a gradual increase in production’’ from next year on sustained expenditure and stability in the delta, he said.

https://businesspost.ng/2019/04/12/seplat-nnpc-to-establish-700m-gas-plant-in-imo/

Seplat is targeting output of 49,000 to 52,000 barrels of oil equivalent a day (boe/d) this year and will probably start seeing a gradual increase in production from next year on sustained expenditure and stability in the Niger Delta, he said.

He urged the AGPC to work hard and deliver the project on schedule, within budget, and to specification, stressing that it was designed as world-class gas processing plant with a capacity to deliver between 3.0 billion and 3.4 billion standard cubic feet of gas daily.
https://www.google.com/amp/s/thenationonlineng.net/nnpc-seplat-shop-for-n253b-to-develop-gas-project/amp/

The name of Seplat CEO, "Avuru", sounds Igbo...

Avuru, being an Igbo man must have insisted that he wants to site in his company in Imo state which the NNPC which is in partnership couldn't influence.

Aside that, Buhari, Maikantu Baru, and their co-travelers, would have sited this company in banditry ravaged Zamfara, and then spend another $100m to lay pipe that would convey the raw material.

A laudable project it is however, if it sees the light of day.

But wait a minute, I thought WASTENERS said there's no oil in Igboland and that's why we are forcing union with Niger Delta?

ASSA North, Imo state is very rich with gas, shell also investing heavily in ASSA NORTH GAS PROJECT


https://www.shell.com.ng/media/2018-media-releases/spdc-announces-fid-on-assa-north-gas-project.html
SPDC ANNOUNCES FID ON ASSA NORTH GAS PROJECT - TARGETS 300 MILLION CUBIC FEET GAS FOR DOMESTIC MARKET

The Shell Petroleum Development Company of Nigeria Limited (SPDC) has announced the Final Investment Decision (FID) on the Assa North Gas Development Project in Imo State, a major momentum to the domestic gas aspiration of the Federal Government for increased power generation and industrialisation.
osagie okunbor
Mr. Osagie Okunbor Country Chair of Shell Companies in Nigeria & Managing Director, The Shell Petroleum Development Company of Nigeria Limited (SPDC)
At peak production, the project is expected to produce 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the Obiafu-Obrikom-Oben pipeline network.
The Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, who disclosed this on Sunday noted that the project would be a major game-changer in Nigeria’s quest for energy sufficiency and economic growth. “This is good news for the SPDC JV and Nigeria as we look to grow the domestic market and optimise our onshore footprints.”

Okunbor said, “The project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth. It is premier amongst the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC). Their integrated focus, support and drive were instrumental to this investment decision.”

Okunbor added that the SPDC JV would continue to explore other areas of support for the expansion of domestic gas supply and continue to make investments under the right conditions.

SPDC’s Director and General Manager Projects, Mr. Toyin Olagunju, said the Assa North project would be a significant contribution to GDP growth in Imo State and across Nigeria as the gas produced will be utilised in-country across diverse industries, while providing economic opportunities for local communities.
Just three weeks ago, the SPDC JV signed a gas supply and aggregation agreement with Geometric Power Aba Limited (GPAL) for the supply of about 43million standard cubic feet of gas per day to support the 140MW Aba Integrated Power plant at Ossisioma in Abia State.
By the agreement, SPDC will supply gas from the SPDC joint venture gas plant in Imo River traversing Abia and Rivers States to the power producer, GPAL, via a gas pipeline network which is already installed.

SPDC is the operator of a Joint Venture involving the Nigerian National Petroleum Corporation (NNPC), which holds 55%; Shell 30%; Total Exploration and Production Nigeria Limited (TEPNG)10%; and Nigerian Agip Oil Company Limited (NAOC) 5%.

Awol1:
The name of Seplat CEO, "Avuru", sounds Igbo...

Avuru, being an Igbo man must have insisted that he wants to site in his company in Imo state which the NNPC which is in partnership couldn't influence.

Aside that, Buhari, Maikantu Baru, and their co-travelers, would have sited this company in banditry ravaged Zamfara, and then spend another $100m to lay pipe that would convey the raw material.

A laudable project it is however, if it sees the light of day.

Austin Avuru is from Abbi, in Ndokwa Delta State. SEPLAT co-founder is ABC Orjiakor, SEPLAT is leading IOC company is Nigeria, listed in London Stock market

Anything that will make Nigeria better is welcome.

Hope ndi ofe ho allow am stand

Nice one. But why the pic OP? I thought construction is scheduled for 2020?

Anambralstson:



Austin Avuru is from Abbi, in Ndokwa Delta State. SEPLAT co-founder is ABC Orjiakor, SEPLAT is leading IOC company is Nigeria, listed in London Stock market

You just supported my claim.

If the owners weren't Igbo men, believe me, NNPC would have taken the project to the North.

Nice one

Anambralstson:



Austin Avuru is from Abbi, in Ndokwa Delta State. SEPLAT co-founder is ABC Orjiakor, SEPLAT is leading IOC company is Nigeria, listed in London Stock market

You just supported my claim.

If the owners weren't Igbo men, believe me, NNPC would have taken the project to the North.

In another news, has Maikantu Baru discovered the oyel they are looking for in the North?

Good development

Some people are fond of asking what igbos contribute to Nigeria.
I guess they don't know that two igbo states are oil and gas producing.

And I am not even talking about the commercial and business value that igbos contribute to Nigeria.

SaturnNick:
Nice one. But why the pic OP? I thought construction is scheduled for 2020?

Gas Production to commence in 2020

Imo state really need that.

It supposed to be in Lagos or kano, not in a landlocked region

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RTSC:
Some people are fond of asking what igbos contribute to Nigeria.
I guess they don't know that two igbo states are oil and gas producing.

And I am not even talking about the commercial and business value that igbos contribute to Nigeria.

Many of them are ignorant

Great news from Imo State

Emeka Ihedioha is our savior

Good news! Hope the Governors utilize the tax from these companies so we don't have to cry against "marginalization" again!

Awol1:
The name of Seplat CEO, "Avuru", sounds Igbo...

Avuru, being an Igbo man must have insisted that he wants to site in his company in Imo state which the NNPC which is in partnership couldn't influence.

Aside that, Buhari, Maikantu Baru, and their co-travelers, would have sited this company in banditry ravaged Zamfara, and then spend another $100m to lay pipe that would convey the raw material.

A laudable project it is however, if it sees the light of day.

But wait a minute, I thought WASTENERS said there's no oil in Igboland and that's why we are forcing union with Niger Delta?

He is from Delta State

OML 53 covers an area of approximately 1,585km2 and is located onshore in the north eastern NigerDelta. The Jisike oil field, located in the northwestern area of the block,

Existing infrastructure at Jisike comprises flow-lines, phase one separation facilities and a flow station with a design capacity of 12,000 bopd and 8 MMscfd. Oil production is sent for further processing at the nearby Izombe facilities on OML 124 from where it is exported via pipeline to the Brass oil terminal. The block also contains the large undeveloped Ohaji South gas and condensate field, the development of which will be coordinated with the SPDC operated Assa North field on adjacent OML 21, together referred to as the ANOH project which is set to be one of the largest greenfield gas condensate development projects in Nigeria to date. The expectation is that future gas production from the ANOH project will supply the domestic market, for which significant work on commercialisation terms and development concepts has been undertaken. There is also shallow oil development potential at Ohaji South that could be pursued as a separate standalone project in the near term. Prior to initiating development of the ANOH project, Seplat expects to focus efforts on increasing oil production at the Jisike field and development of the shallow oil reservoirs in Ohaji South. Pursuant to the Joint Operating Model, Seplat is designated operator of OML 53.

https://seplatpetroleum.com/operations/oml-53/