Orient Petroleum, First Modular partner to boost gas supply
Orient Petroleum Resources Plc (OPR) and First Modular Gas Systems Limited (FMGSL), a natural gas processing and marketing company, have signed a Gas Processing, Sale and Purchase Agreement for the development of the first phase of a gas processing plant at OPR’s Anambra River oil and gas field, located in the Anambra Basin.
The Anambra Basin is estimated to have significant gas deposits and contains the OPR operated Oil Prospecting Licenses (OPLs) 915 and 916. Improved domestic gas supply is expected to increase the use of cleaner energy in Nigerian homes.
The Chairman of OPR, Chief Emeka Anyaoku, said the agreement represents an important step to monetise the Anambra River field hydrocarbon resources. He added that the agreement was made possible by the close cooperation and deep commitment of OPR and FMGSL.
The Managing Director/Chief Executive Officer of OPR, Engr. Sunny Okoye, said the new deal will result in a cost-effective development that will ensure zero gas-flaring and also promote a cleaner, safer and healthier environment.
The first phase, expected within six months, involves the initial production and processing of 5mmscfd of gas into Liquefied Petroleum Gas, Natural Gas Liquids and Compressed Natural Gas, with incremental volumes coming on stream as more wells are drilled in the acreages held by OPR. Both parties are keen to ensure a doubling of capacity by the end of the second year. The gas produced will add to Nigeria’s domestic gas supply.
FMGSL is a midstream gas portfolio company jointly owned by Àrgentil Capital Management Limited (ACML) and Dharmattan Gas Facilities Limited to develop gas processing clusters that support making gas available for the domestic market.
The Managing Director of ACML, Gbenga Hassan, stated: “We see this as an immediate value-creating response to the need for monetisation of currently stranded and / or flared gas. Also, the Managing Director of Dharmattan, Mr. Bashir Koledoye, added: “we assist indigenous oil and gas producers recover value from their gas.