Delta State Scores Another Beautiful and Remarkable Investment Goal

Delta State Scores Another Beautiful and Remarkable Investment Goal.

The Government of Delta State, this morning, December 19, 2023, scored another beautiful and remarkable investment goal when it signed a tripartite Shareholders Agreement with the Nigerian National Petroleum Company Limited, and UTM Offshore Limited for the development of the first Floating Liquefied Natural Gas, FLNG, in Nigeria.

Representatives Dr. Kingsley Emu, Secretary to the State Government, and Mr. Omamuzo Erebe, Solicitor General and Permanent Secretary Ministry of Justice, signed on behalf of the Delta State Government.

The agreement was also endorsed by Mr. Mele Kyari, Group Chief Executive Officer, and Mr. Julius Rone, Group Managing Director, representing NNPC Limited and UTM Offshore, respectively.

According to the heartwarming agreement, the Delta State Government will own eight percent of the project’s shares, while NNPC Limited and UTM Offshore will hold 20 percent and 72 percent, respectively.

During the signing ceremony, which took place at the NNPC Towers in Abuja, Delta State Governor, Rt. Hon. Sheriff F.O. Oborevwori remarked that the UTM FLNG Project represented a pioneering initiative by an indigenous private company in Nigeria.

He highlighted the state government’s decision to hold an 8% equity stake in the floating LNG project, emphasizing its significance to the national economy.

Governor Oborevwori underscored Delta State’s possession of 40% of Nigeria’s proven gas reserves, justifying the investment as a valuable one.

The governor stated that the agreement marked a significant step forward in the project’s development and expressed optimism that construction would commence the following year.

He emphasised the dividends expected from the UTM FLNG, foreseeing a production of over 300,000 metric tonnes of LPG (cooking gas) for the domestic market.

Additionally, he highlighted the project’s role in mitigating environmental hazards in the Niger Delta by reducing gas flaring and improving the well-being of women through a shift to cleaner energy sources.

Governor Oborevwori also anticipated job creation for the youth, a core aspect of Delta State’s development agenda.

Delta Scores Another Beautiful and Remarkable Investment Goal

(standing from left to right) Dr. Kingsley Emu, Mr. Omamuzo Erebe, Governor Sheriff Oborevwori, Mr. Mele Kyari, and Mr. Julius Rone

Acknowledging the former Governor, Senator Ifeanyi Okowa’s foresight in investing in the venture, he commended various stakeholders including regulators, Afreximbank, and the dedicated staff of Delta State Investment and Development Agency (DIDA) for their contributions.

The Group Chief Executive Officer of NNPC, Mr. Mele Kyari, in his speech, commended Governor Oborevwori for supporting gas development and investing in gas projects, highlighting the Delta State Government’s pivotal role in advancing gas utilization in the country.

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

Making his contribution at the event, Mr. Julius Rone, Group Managing Director of UTM, expressed optimism regarding Nigeria’s first indigenous FLNG, anticipating the Final Investment Decision (FID) by the end of the first quarter of 2024.

He lauded the Delta State Government for its equity investment, foreseeing it as a revenue source for infrastructure development and employment creation within the state.

While commending the efforts of all those who were involved in this historic event, the Special Adviser to the Governor of Delta State on Investments, Chief (Dr.) Tony Amechi, enjoins all Deltans and other residents of Delta State to join hands in supporting the government of Governor Oborevwori in achieving his lofty M.O.R.E. agenda.