BY KAYODE EKUNDAYO
UTM Offshore, an indigenous oil and gas company, has kick-off the development of Nigerian first Liquefied Natural Gas (LNG) floating plant with the Pre-Front End Engineering Design (Pre-FEED) contract signing between the Nigerian firm and its foreign contractors, JGC Corporations, a Japanese engineering company and Kellog Brown & Root –KBR Engineering Company.
Work on the Pre-Front End Engineering Design (Pre-FEED) contract is to be completed within four months.
Kellog Brown & Root –KBR Engineering Company, a US-based Engineering, Procurement and Construction (EPC) company, as owners’ engineer is to carry out a third-party review of the Pre-FEED deliverables from JGC on its behalf.
The Department of Petroleum Resources (DPR) had in February issued Licence-to-Establish (LTE) for the first floating LNG production plant for the processing of 176 million cubic feet per day of natural gas and condensate to UTM Offshore Limited.
The signing ceremony was held virtually on Tuesday.
Speaking, the Director, Department of Petroleum Resources (DPR) Sarki Auwalu, salute the doggedness, resilience, and business-mindedness of UTM Offshore management for its prompt transition of the project implementation to the commencement of initial basic engineering works, saying that this is blazing the trail in major capital midstream gas development by an independent, indigenous companies in Nigeria.
“We, at the Department of Petroleum Resources (DPR), heartily felicitate with you, and indeed, all well-meaning Nigerians on the attainment of this important milestone. You will recall that the His Excellency, President Muhammadu Buhari, GCFR, at the onset of the is administration given an important boost to investment in the Nigerian oil and gas sector when he declared both in words and actions, that: Nigeria is open for business. Hence, the DPR, under the leadership of the Minister of Petroleum resources, have continued to implement policy and regulatory reforms driven by commitment to attract investments, create value and improve the contributions of the Oil and gas sector to Nigeria’s GDP.
“With the continued blessings of Mr. president, we will not rest on our oars. With the commencement of preliminary engineering of this Liquefied Natural Gas project, the drive of Mr. President and the HMSPR of making the 2021–2030, Nigeria’s decade of gas is fast becoming a solid reality. As a Department, we will continue to provide opportunities and enable the businesses of promoters and investors in the oil and gas industry for economic growth stability and sustainability of Nigeria and for the mutual benefit of all investors and industry participants”, he stated