The Federal Government has said that the Ministry of Petroleum Resources is expected to generate $600 million from its new marginal oil fields.
This follows the completion of the process for the acquisition of the marginal fields and the subsequent notification of 161 winners.
According to a report from the News Agency of Nigeria (NAN), this disclosure was made by the Minister of State for Petroleum Resources, Timipre Sylva, at the fifth edition of the Special Ministerial Briefings coordinated by the Presidential Communication Team, held at the Presidential Villa, Abuja, on Thursday.
What the Minister of State for Petroleum Resources is saying
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By Emmanuel Addeh
The federal government said yesterday that the Integrated Gas Handling Facility (IGHF) and Liquefied Petroleum Gas (LPG) processing and dispensing plants in Ologbo, Edo State, would generate $200 million in annual revenue into the country’s coffers.
“The lean gas can generate at least 267 megawatts of power per day and also ensure feedstock to gas-based industries. In total , the NPDC stands to generate revenue in excess of $200m per annum from the IGHF plant,” a documentary put together by the NPDC during the event showed.
Speaking during a partially virtual and physical ceremony to officially declare the over 200 million standard cubit feet per day project open, President Muhammadu Buhari said Nigeria has moved a step closer to the nation’s dream of full utilisation of its abundant gas potential.
The Nigeria Extractive Industries Transparency Initiative (NEITI), yesterday, disclosed that 11 out of the 20 audit issues raised against the Nigerian National Petroleum Corporation (NNPC), in its past audit reports have been resolved.
In a statement in Abuja, NEITI, also noted that eight other issues in its past audit reports against the NNPC were currently being resolved, while only one issue was yet to be resolved.
The unresolved issue, according to NEITI, is the status of the Nigerian Liquefied Natural Gas (NLNG) payments, noting that a joint committee of NEITI and NNPC Joint Committee on Remediation and Mainstreaming, which made the disclosure, also recommended that NNPC publish a statement on the status of the NLNG account.
Facility to provide 3.5m megawatts electricity in 25yrs
About N2.8 trillion-revenue is expected from a new 200 million cubic feet gas project being promoted by the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
This revenue is expected to be made in about 25 years as the Integrated Gas Handling Facility (IGHF) and LPG Units project would contribute at least $300 million yearly, bringing revenue to about $7.5 billion (N2.8 trillion) at full output.
The project, which could be commissioned later this week, is coming shortly after a new pipeline project, the Ajaokuta-Kaduna-Kano pipeline, kicked off.
The NPDC IGHF according to the NNPC would yield 82mmscfd of lean gas or methane, which is equivalent to 366.5MW of electricity per day.