Energy
Floating LNG Project: UTM Solicits NCDMB’s Equity Investment, Approvals
UTM Offshore Limited, promoters of Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility has requested the Nigerian Content Development and Monitoring Board (NCDMB) to invest equity in the project and to accelerate key approvals that would fast-track the project’s development.
The Corporate Communication Department of the NCDMB conveyed this in a statement.
According to the statement, the request was made on Wednesday at the Nigerian Content Tower in Yenagoa, Bayelsa State when the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe hosted the management of UTM Offshore Limited led by the Group Managing Director, Mr. Julius Rone.
The target completion date of the FLNG project is 2028 and it hopes to contribute about 450,000 tonnes of liquified petroleum gas (LPG), otherwise known as cooking gas per annum to the domestic market.
“This,” the statement had it would “assuage Nigeria’s average demand of about 1.5 million tonnes of LPG per annum and reduce the dependence on the importation of LPG.”
According to the GMD the UTM is a 100 percent indigenous company, and the floating LNG project will optimise Nigeria’s stranded gas offshore, enhance energy transition, promote domestic consumption of cooking gas, and aid technology transfer, among other benefits.
He invited the NCDMB to take equity in the project, hinting that the Nigerian National Petroleum Company Limited (NNPCL) and the Delta State Government were already partners on the project given its importance to Nigeria’s energy security.
The GMD described the FLNG as another confirmation of the capability of Nigerians to develop projects of world-class standards.
He announced that roadshows were being planned for Uyo and Abuja in April 2024, to showcase the Nigerian Content opportunities in the project and to engender increased participation of Nigerian oil and gas services companies.
The UTM Offshore boss thanked the Board’s Management for facilitating the project’s progress, just as he solicited greater synergy with his company on all aspects of Nigerian Content implementation and overall development of the project.
Providing further details, the Technical Manager of the FLNG, Engr. George Amara stated that the project’s target total production is 2.72 million tonnes per annum (MTPA), with LNG accounting for 1.81 MTPA, LPG taking up 0.45 MTPA, and condensate making up 0.25 MTPA.
He commended NCDMB for approving key stages of the development, including Pre-Front-End Engineering Design (Pre-FEED), the Pre-FEED Nigerian Content Development (NCD) Plan, and the Front-End-Engineering Design (FEED) NCD Plan.
Other accomplishments include the Engineering Procurement Construction NCD Plan, the training of three indigenous engineers for Pre-FEED Nigerian Content Development, and the engagement of 13 Nigerian engineers for the FEED NCD scope as well the engagement of Nigerian engineering firms for different aspects of the project.
He affirmed that UTM FLNG would utilise Nigerian fabrication yards for in-country activities, adding that an inspection of prospective yards in Lagos and Calabar had been completed.
He hinted that the project was going into the Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) stage, which is very critical, hence the need to update the NCDMB and request speedy approval for the EPC NCD Plan.
In his response, Engr. Ogbe, expressed delight with the progress recorded on the UTM FLNG and assured that the Board will provide all the required approvals. He urged the company’s Management to “be proactive. Let us know whatever challenge or obstacles that you encounter” assuring that the Board would do all that is within its powers to assist the company and others showing resourcefulness.
On the request for equity investment, the ES promised to consider the application with the Board’s management and to escalate the proposal to the Board’s Governing Council for further consideration.
He also promised that the Board would participate in the Nigerian Content roadshow, to explore opportunities for other Nigerian firms on the FLNG project.
Keen on optimising production from the nation’s hydrocarbon assets to boost revenues and meet her OPEC production quota, the Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in the Awoba Unit Field, Newcross Exploration and Production Ltd., have restarted production from the Awoba field which last contributed production to the Bonny Terminal in 2021 and was finally shut down in February 2022 due to evacuation issues and crude oil theft.
This was contained in a statement put out on the state oil company’s X handle on Tuesday from Abuja, under the signature of its Chief Corporate Communications Officer, Olufemi O. Soneye.
He asserted that since the restart of the Awoba field by NNPC Ltd and it partners on April 13, 2024; production from the field has averaged 8,000 barrels per day and is expected to plateau at 12,000 per day at full ramp up within 30 days.
Awoba is also expected to significantly boost gas supply to the power sector and other gas-based industries, Soneye added.
Biztellers reports that the Awoba Unit which straddles OMLs 18 and 24 is located in the mangrove swamp south of Port Harcourt, Rivers State. Both OML 18 and OML 24 assets are under the management of the NNPC Upstream Investment Management Services (NUIMS).
Recall that the NNPC Ltd. has been recording a string of production successes from the JV portfolio which have significantly lifted overall national production. Besides the recent start of production at the Madu Field by the NNPC Ltd/First E&P JV, the company has achieved the restart of production at OMLs 29 and OML 18 in late 2023 which have steadily contributed an average of 60,000bpd to the nation’s production output since their restart.
The Group Chief Executive Officer of NNPC Ltd., Mallam Mele Kyari, ascribed the achievement to the President Bola Ahmed Tinubu administration’s success in providing enabling operating environment for businesses to thrive.
He expressed appreciation to all stakeholders (staff, operators, host communities, government security agencies, and private security contractors) who played a pivotal role in achieving the feat.
The Nigerian National Petroleum Company Limited (NNPC Ltd) and its Joint Venture partner in OML 85, First Exploration and Petroleum Development Company Limited (First E&P), have commenced oil production from the asset also known as Madu Field.
Biztellers reports that production from the field which is located in shallow waters offshore Bayelsa State and operated by First E&P is expected to be at an average of 20,000 barrels per day.
The achievement is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of enabling environment for existing and prospective investors.
According to the Group Chief Executive Officer of NNPC Ltd, Mele Kyari, the commencement of oil production at the Madu Field is a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.
He commended stakeholders for their support, and opined that the addition of 20,000 barrels per day by an indigenous oil player signals the commitment of stakeholders to achieving economic development for Nigeria.
Recall that the Final Investment Decision (FID) on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd/First E&P JV in 2018.
Production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading (FPSO) Unit, which has a crude oil storage capacity of up to 800,000bbls.
Chevron Nigeria Limited (CNL) has denounced stories being peddled around that it is recruiting.
General Manager, Policy, Government & Public Affairs, CNL, E. O. Brikinn, denounced the stories in a statement made available to Biztellers, in which he cautioned that the company will not respond to enquiries about “fraudulent advertisements and job offers”.
It reads, “Chevron Nigeria Limited (“CNL”), operator of the Nigerian National Petroleum Company Limited (“NNPCL”) and CNL Joint Venture, is aware of the circulation of false recruitment information in some media and online channels in the name of CNL and Chevron Corporation, purportedly advertising job positions in CNL.
“Additionally, fraudulent job offers have reportedly been sent through emails, text messages and phone calls by individuals purporting to be staff or representatives of CNL and Chevron Corporation.
“Members of the public are hereby notified that CNL does not solicit job applications or initiate recruitment processes through emails, posters, handbills, text messages, social media, or phone calls.
“Job seekers are advised to always check the company’s website at: http:/www.careers.chevron.com, and the national newspapers for job advertisements from CNL.
“CNL does not and will not require applicants to make any payment towards processing any job application. Job offers requesting candidates to pay money, at any point during the recruitment process, are not from CNL. CNL advises that anyone who receives these fraudulent communications should report them to the appropriate law enforcement agencies.
“CNL hereby dissociates itself from all false job adverts and offers published in any online media platform, web site, email, poster, handbill or any other medium.
“CNL will not respond to enquiries about fraudulent advertisements and job offers.”
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