The minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, has said the Final Investment Decision (FID) on the Iseni Project by Shell Petroleum Development Company (SPDC) and its joint venture partners has opened up a new vista of opportunities for local content compliant contracts for Nigerian firms.
Shell Petroleum Development Company of Nigeria Limited (SPDC) with the Nigerian National Petroleum Company (NNPC) Limited, TotalEnergies and Nigerian Agip Oil Company, as Joint Venture (JV) partners took the final investment decision (FID) in a deal that will see the building of a dedicated upstream facility to supply 100 million standard cubic feet of gas per day to Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State for 10 years.
Ekpo, in a statement on Sunday by his spokesman, Louis Ibah, commended Shell and its partners for commiting to the FID saying the development of the gas-rich Iseni field would go a long way in supporting the federal government’s aspirations for the Decade of Gas initiative.
Said Ekpo: “I am extremely excited with SPDC, NNPCL, TotalEnergies, NAOC who worked assiduously for the realisation of the FID on the Iseni project 100mmscfd, which is capable of producing the equivalent of 400MW of energy, will be delivered into the domestic market when construction is completed. This is a significant milestone in our quest to achieve our aspirations of the Decade of Gas initiative.
“Following this FID, I expect local content compliant contracts to be awarded, thus creating jobs in the domestic economy and growing our GDP. This is in line with President Bola Tinubu’s commitment to unlock Natural Resources and stimulate continuous investment and growth of the Nigerian economy.”
According to Ekpo, the Iseni Project is a critical gas supply deal tracked by the Minister of State Petroleum Resources (Gas) as part of Nigeria’s Decade of Gas Initiative.
Managing director of SPDC, operator of the joint venture, Osagie Okunbor, on Friday, in Port Harcourt described the FID as a significant step in supporting the Nigerian government’s ‘Decade of Gas’ ambition.
“This investment decision is a critical step in pursuing the development of the gas-rich Iseni field, which is part of the Okpokunou Cluster in Oil Mining Lease 35 located in Sagbama Local Government Area of Bayelsa State,” Okunbor said, adding that, SPDC and its joint venture partners remained committed to Nigeria’s ‘Decade of Gas’ ambition and, particularly, the domestic gas agenda.
According to Okunbor, increasing the delivery of natural gas to the domestic market is key to accelerated industrialisation and economic development of Nigeria.
The FID signals a positive step towards the construction of the required infrastructure for the project that is expected to create jobs through direct and indirect employment.
Dangote boosts Africa’s largest granulated urea fertiliser complex and produces around 65 per cent of Nigeria’s domestic fertiliser requirements.
The project will supply gas which will enhance the Dangote Fertiliser and Petrochemical Plant’s ability to deliver on its promise to the Nigerian people and government.
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