Delta, NNPCL, UTM offshore ink deal for floating LNG development

Publish date: 2024-05-08

The Delta State Government, Nigerian National Petroleum Company Limited (NNPC), and UTM Offshore Ltd have finalized a shareholders’ agreement to develop Nigeria’s first Floating Liquefied Natural Gas (FLNG) project.

Representatives from the Delta state government, NNPC Limited, and UTM Offshore signed the agreement. This included Kingsley Emu, Secretary to the State Government (SSG), and Omamuzo Erebe, Solicitor General and Permanent Secretary, Ministry of Justice, signing on behalf of the Delta state government. Meanwhile, Mele Kyari, Group Chief Executive Officer, and Julius Rone, Group Managing Director, signed for NNPC Limited and UTM Offshore, respectively.

As per the agreement, the Delta state government will hold an 8 percent share of the project while NNPC Limited and UTM Offshore will own 20 percent and 72 percent, respectively.

During the signing ceremony at the NNPC Towers in Abuja, Governor Sheriff Oborevwori of Delta state emphasized the significance of the UTM FLNG Project as the first of its kind developed by an indigenous private company in Nigeria. He underscored the strategic importance of the project to the national economy, given that 40 percent of Nigeria’s proven gas reserves are located in Delta state.

Governor Oborevwori highlighted the anticipated benefits of the project, including the production of over 300,000 metric tonnes of LPG for the domestic market, reduction of gas flaring to mitigate environmental hazards in the Niger Delta, and the creation of job opportunities for the state’s youth.

Mr. Mele Kyari, Group Chief Executive Officer of NNPC, lauded Governor Oborevwori for his commitment to gas development and investment in gas projects. He also expressed his satisfaction with collaborating with the Delta State Government and its role in supporting gas utilization and investing in the industry.

Hon Ekprikpe Ekpo, Minister of State Petroleum Resources (Gas), stressed the need to monetize Nigeria’s vast gas reserves for economic development.

Julius Rone, Group Managing Director of UTM, anticipates that the Final Investment Decision (FID) on the project will be made before the end of the first quarter of 2024. He expressed gratitude to all stakeholders, particularly the Delta state government, for their support and investment in the project.


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