Delta State Government, Nigerian National Petroleum Company Limited, and UTM Offshore Ltd, Tuesday, signed a Shareholders Agreement for the development of the first Floating Liquefied Natural Gas, FLNG in Nigeria, according to the company's release.
With the agreement Delta State Government will own an eight percent share of the project, NNPC Limited 20 percent, and UTM Offshore 72 percent.
Governor Oborevwori explained that the state government took 8% equity in the floating LNG project because of its conviction of the strategic importance of the project to the national economy, adding that with 40% of Nigeria’s proven gas reserves in Delta State, it was a worthy investment.
According to him, the deal marked a significant milestone in the development of the project, expressing hope that construction will begin next year.
In his remarks, the Group Chief Executive Officer, of NNPC, Mr Mele Kyari commended the Delta State Governor for not just being a promoter of gas development in the country but for also investing in gas projects.
Also speaking, the Minister of State Petroleum Resources (Gas), Hon. Ekprikpe Ekpo noted that it was time for the country to begin the monetisation of its huge gas reserves for the development of the economy.
In his remarks, Group Managing Director of UTM, Mr. Julius Rone said the signing ceremony marks another significant milestone in actualizing Nigeria’s first indigenous FLNG.
Mr. Rone said he expects the Final Investment Decision (FID) on the project to be taken before the end of the first quarter of 2024. He commended the stakeholders for their support, especially the Delta State Government for investing in the project.