06 May 2014, Lagos – Transnational Corporation of Nigeria (Transcorp) and the Nigerian National Petroleum Corporation (NNPC) signed a production sharing contract (PSC) last Friday for the exploration and production of Oil Prospecting Lease (OPL) 281.
Under the terms of the PSC, Transcorp has committed itself to a work programme to prove and develop an estimated 104 million barrels of oil reserves, an additional 335 million barrels of probable reserves, and approximately four trillion cubic feet (tcf) of natural gas reserves.
The addition of OPL 281 to its portfolio of oil and gas assets is another milestone in Transcorp’s strategy to create Nigeria’s leading integrated energy company, operating in production, refining, power generation, petrochemical and fertiliser production.
Chairman of Transcorp, Tony O. Elumelu, said: “Integrating across the energy value chain is the foundation of Transcorp’s strategy. OPL 281’s gas reserves will be deployed directly into Nigeria’s power generation industry, as we seek to transform the economy of our country.”
Transcorp’s existing investment, the Ughelli power plant in Delta State, is undergoing extensive rehabilitation, adding 1,000MW to the existing 1,000 MW capacity, thus doubling the plant’s electricity output to 2,000MW over the next three to five years, in collaboration with GE and other partners.
Ughelli is Nigeria’s largest gas-fired power generation facility and will be powered directly by the natural gas delivered from OPL 281.
“OPL 281 is rich with nearly 4 tcf of natural gas and will support the newly-expanded Ughelli power plant for up to 25 years at 2000 MW per day,” Elumelu continued, adding: “This volume of reserves also guarantees 15 years of feedstock supply for our future fertiliser and petrochemical plants, which will utilise the gas stores to bring value for Nigerians locally, instead of the wastage in flaring and environmental destruction that has historically characterised the industry.”
In addition to directly investing in the Niger Delta, Transcorp continues to contribute to the social development of the communities in which it operates.
Recent community engagements include a medical clinic in Ughelli, part of a wider programme of improving access to quality healthcare.
Elumelu said: “I commend the Honourable Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, and the NNPC for implementing policies that directly encourage indigenous participation. Transcorp brings a world class team, led by and made up of Nigerians.
“We offer a new model of active indigenous management of our country’s resources, bringing industry leading skills and a philosophy that will contribute to economic transformation and address our pressing social needs. We look forward to continuing to play a leading role in this vital process.
“This kind of action, which gives Nigerians the opportunity to actively participate in the natural resource opportunities with which the country is richly endowed, is what leads to employment creation and youth engagement.”
Transcorp recently announced a N3.77 billion profit before tax for Q1 2014.
– This Day