Seplat, NNPC Claim Gas Project Progress
Nigerian independent Seplat said August 13 that it has agreed with a subsidiary of state-owned Nigerian National Petroleum Corporation (NNPC) to develop two key gas projects over the next three years.
Under its agreement with Nigerian Gas Processing and Transportation Company (NGPTC), Seplat said it will expedite development of the Assa North and Ohaji South (ANOH) gas projects that together will deliver an eventual 3.4bn ft3/d (35.1bn m3/yr) by 2020, and that a final investment decision on the venture is expected in 4Q2018. But it gave no cost estimate for the already overdue project.
Moreover Seplat already said last October that a final investment decision was due on the ANOH plant "within three to six months" - so by April 2018. One industry source this week told NGW that the project will likely be delayed because of the upcoming Nigerian presidential elections in February 2019 and that, as the FID is yet to be taken, there is no possible way the project can be completely realised by 2020.
According to NNPC, both parties have now decided to build, operate and maintain the ANOH Gas Processing Plant, with an initial 300mn ft3/d (3.1bn m3/yr) capacity in Imo State; this follows a heads of terms agreement signed December 19 2017. Seplat and NGPTC will each hold a 50% stake in ANOH Gas Processing Company Limited (AGPC), a joint venture incorporated in 2017 to develop the plant.
Seplat CEO Austin Avuru said August 13: "The execution of the agreements today is an important step as we head towards taking FID on the ANOH project later this year. ANOH is one of the largest greenfield gas and condensate developments in Nigeria which will supply critical and much-needed gas volumes to be internally consumed in the country into a growing domestic market."
AGPC was originally set up for the purpose of processing future wet gas production from the upstream unitised gas fields at OML 53 & OML 21, operated by Shell.