NNPCL, JV Discover New Oil In OML 85, Signs Gas Sale Agreement

Nigerian Petroleum Company Limited (NNPCL) and FIRST Exploration & Petroleum Development Company Limited (FIRST E&P) Joint Venture (JV) have made a significant hydrocarbon discovery in the Songhai Field, located in OML 85.

The well, according to reports, encountered hydrocarbons across eight reservoirs, logging over 1,000 feet of hydrocarbon-bearing sands, most of which exhibit excellent reservoir properties.

This is coming as the NNPC Gas Marketing Ltd (NGML), a subsidiary of the NNPC Ltd, and its Unincorporated Joint Venture partner, NIPCO Gas Ltd, executed a Gas Sale and Purchase Agreement (GSPA) with Ssonic Petroleum Ltd to supply natural gas to the company’s proposed Liquefied Natural Gas (LNG) plant in Lekki Free Trade Zone, Lagos State.

Under the terms of the agreement which was executed on Thursday, 6th March, 2025, the NGML-NIPCO UJV will supply 80 million standard cubic feet (mmscf) per day of natural gas to the Ssonic Petroleum LNG plant for a period of 20 years, said the chief Corporate Communications officer of the NNPCL, Olufemi O. Soneye.

The gas supply agreement is part of efforts by the NNPC Ltd to boost domestic gas utilisation for the nation’s industrial and economic growth and promote the use of gas as a cleaner, cheaper and more environmentally friendly fuel in keeping with the goal of reducing global warming.

Meanwhile, preliminary analysis indicates substantial oil and gas volumes, reinforcing the field’s commercial potential. Further evaluations, including formation testing and well data integration, will be conducted to refine resource estimates and optimise field development plans, it stated.

Speaking on the discovery, general manager, Exploration and Development at FIRST E&P, Segun Owolabi, described it as a major milestone in the JV’s efforts to maximise the potential of its assets.

“This discovery marks a major milestone in our efforts to unlock the full potential of our assets. The success at Songhai Field underscores the effectiveness of our exploration strategy and our commitment to delivering sustainable value to all stakeholders,” Owolabi stated.

NNPC Limited, as the majority partner in the JV, also emphasized the strategic importance of the discovery in supporting Nigeria’s production growth and cost optimization targets. The CEO of NGML, Seyi Omotowa, noted that the success at Songhai Field aligns with NNPC Limited’s broader upstream objectives.

“This aligns with NNPC Limited’s mandate to drive production growth and cost optimisation. The success at Songhai Field reflects our commitment to strategic partnerships, advanced technology, and efficient operations to maximise Nigeria’s hydrocarbon potential sustainably,” he said. The discovery also highlights the role of strategic collaboration in expanding Nigeria’s hydrocarbon reserves.

Commenting on this, NNPC Limited’s group chief executive officer, Mele Kyari, reaffirmed the company’s commitment to efficiency and long-term value creation. “This discovery reaffirms the potential of Nigeria’s offshore assets and the importance of collaboration in boosting reserves and production. NNPC Limited remains committed to driving efficiency and long-term value creation for the nation,” Kyari stated.