# Delta State, NNPC, and UTM Offshore Join Forces for Nigeria’s First Floating LNG Project
In a landmark development, the Delta State Government, the Nigerian National Petroleum Company Limited (NNPC), and UTM Offshore Ltd have sealed a pivotal shareholders’ agreement. This agreement paves the way for the realization of Nigeria’s inaugural Floating Liquefied Natural Gas (FLNG) project.
Representing the Delta state government, Kingsley Emu, the Secretary to the State Government (SSG), alongside Omamuzo Erebe, Solicitor General and Permanent Secretary of the Ministry of Justice, endorsed the agreement. On the other side, the Group Chief Executive Officer, Mele Kyari, and Group Managing Director, Julius Rone, inked their signatures on behalf of NNPC Limited and UTM Offshore, respectively.
Under this historic agreement, the allocation of shares stands at eight percent for the Delta state government, 20 percent for NNPC Limited, and a commanding 72 percent for UTM Offshore.
The signing ceremony held at the illustrious NNPC Towers in Abuja elicited profound statements from Governor Sheriff Oborevwori of Delta state. He underscored the unprecedented nature of the UTM FLNG Project, being the pioneering endeavor of its kind undertaken by an indigenous private entity in Nigeria.
Governor Oborevwori elucidated the strategic rationale behind the Delta state government’s decision to secure an 8 percent equity stake in the FLNG project. This move stems from the firm belief in the project’s pivotal role in bolstering the national economy. Notably, with a substantial 40 percent of Nigeria’s proven gas reserves situated in Delta state, this investment emerges as a strategic imperative.
The governor emphasized, “Of particular interest to Delta state government is the dividend that this UTM FLNG will generate, thus advancing the socio-economic development of our great state.”
Furthermore, he highlighted the far-reaching benefits of the project, anticipating the production of over 300,000 metric tonnes of LPG (cooking gas) earmarked for the domestic market. Emphasizing the project’s potential to mitigate environmental hazards in the Niger Delta by curbing gas flaring, Governor Oborevwori also underscored its role in improving the health and well-being of women, who will benefit from the transition to cleaner energy sources. Additionally, he emphasized the project’s capacity to generate employment opportunities, aligning with the state’s focus on youth empowerment under its MORE agenda.
In response, Mr. Mele Kyari, Group Chief Executive Officer of NNPC, commended Governor Oborevwori for his resolute commitment to advancing gas development and investing in gas projects. He expressed elation at the collaboration with the Delta State Government, acknowledging its dual role as a proponent of expanding gas utilization and an investor in the industry.
Hon Ekprikpe Ekpo, Minister of State Petroleum Resources (Gas), echoed the sentiment, stressing the pressing need for the country to capitalize on its extensive gas reserves to drive economic progress.
Julius Rone, Group Managing Director of UTM, articulated the signing ceremony as a momentous milestone in realizing Nigeria’s maiden indigenous FLNG. He expressed optimism regarding the Final Investment Decision (FID) on the project, slated for deliberation before the close of the first quarter of 2024.
Rone extended gratitude to the stakeholders, particularly lauding the Delta state government for its unwavering investment in the project. He underscored, “I want to thank the Delta state government for taking an equity stake in this laudable project, which will create other sources of revenue for the state to develop its infrastructure that is highly needed and create employment for the teeming youths of Delta State.”
