In line with the Federal Government’s plan to reduce the nation’s reliance on oil, Seplat Petroleum Development and Nigerian National Petroleum Corporation (NNPC) is set to raise $700-million to build a joint gas project scheduled to start production next year.
The project, which is known as Assa North-Ohaji South, will boost gas production and infrastructure development in Nigeria, Africa’s biggest producer of crude oil. The plant will be developed, built and operated in Imo State, Nigeria by ANOH Gas Processing Company, owned by Seplat, and the Nigerian Gas Company, a unit of the NNPC.
According to the CEO of Seplat, Mr Austin Avuru, to raise the capital for the project, Seplat and the NNPC will provide 60% of the funds as equity, while ANOH will source the balance as debt. He said, “Both parties already have each contributed $100-million in equity,” Stating that “There will be another equity injection and at the back end of it will be debt,’’.
Mr Avuru also stated that “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,”.
According to Seplat’s CEO, the plant will process wet gas from the unitized upstream fields at OML 53 and OML 21, with an initial capacity of 300-million standard cubic feet per day.
He pointed out that the plant has a scheduled to begin production by the last quarter of 2020 and the first supply is targeted to be made by 2021.