The Nigerian National Petroleum Corporation (NNPC) on Monday signed five agreements with Seplat Petroleum Development Company to accelerate the development of the Assa North and Ohaji South (ANOH) gas fields in Nigeria.
The ANOH gas field is projected to deliver around 3.4 billion standard cubic feet of gas per day (bscfd) by 2020 and is one of the seven critical gas development projects (7CGDP) in the country.
The state oil firm and Seplat have been promoting the ANOH Gas Processing Company (AGPC) as a special purpose vehicle to “develop, build, operate and maintain the ANOH Gas Processing Plant”.
The processing plant which will be located in Imo state will have an initial capacity of 300million standard cubic feet per day.
Commenting on the project, Maikanti Baru, group managing director, NNPC said a steering committee had been set up to finalise the agreements leading to the project’s takeoff.
“Following the execution of heads of terms (HoT) by the Nigerian Gas Processing and Transportation Company (NGPTC) on behalf of the NNPC, Seplat and AGPC on December 19, 2017, the steering committee for the AGPC project has provided the leadership and broad guidance for the development and finalisation of the various commercial agreements required to underpin the project,” a statement quoted Baru as saying.
Under the NNPC-Seplat agreement, the Nigerian Gas Processing and Transportation (NGPTC), a subsidiary of the NNPC, will retain 50% stake in the AGPC.
Austin Avuru, Seplat’s chief executive officer, said that the agreements signed with NNPC and the NGPTC are preludes to the ANOH project’s Final Investment Decision (FID), which is expected in the fourth quarter of 2018.
The five agreements according to a statement from Seplat are listed as:
- AGPC Shareholders Agreement between AGPC, NGPTC and SEPLAT;
- AGPC Share Subscription Agreement between AGPC, NGPTC and SEPLAT;
- Wet Gas Sales and Purchase Agreement between NNPC, SEPLAT and AGPC;
- Gas Sale and Purchase Agreement between AGPC and Nigerian Gas Marketing Company (NGMC);
- Gas Marketing Agreement between AGPC and NGMC.