*Appoints six new board members
26 September 2017, Sweetcrude, Lagos — Seven Energy International has satisfactorily met all the conditions precedent to the long-term Gas Sales Agreement for the supply of gas by Accugas Limited to the Calabar Nigerian Integrated Power Project.
The Calabar GSA which ticked off on September 22, 2017, is supported by a World Bank Partial Risk Guarantee, PRG.
The PRG, which has the backing of the Federal Government of Nigeria, is a financial instrument that will secure the supply of up to 131 million cubic feet per day (“MMcfpd”) of natural gas under the Calabar GSA, thereby enabling the consistent generation of up to 561 MW of electricity to the national grid, representing around 15 percent of current power generation in Nigeria.
This arrangement, which guarantees payments to Accugas for gas supply, is backed by the Federal Government of Nigeria and the International Development Agency of the World Bank.
It is described as the first of its kind for gas supply in Nigeria and is a demonstration of the Federal Government’s commitment to increasing power supply in the country and stabilising the ‘gas to power’ value chain.
To date, Accugas has been supplying gas to Calabar NIPP under an interim gas sales agreement, with average deliveries in 2017 to date of 45 MMcfpd. The Calabar GSA includes a 90 business day grace period during which the PRG cannot be called upon.
In order to strengthen the Board with independent expertise and knowledge to guide the Group in evaluating and implementing its restructuring, there have been the following changes to its Board: David Duggins, David Lovett, Oluseyi Bickersteth and Ken Igbokwe have been appointed independent non-executive directors; Manish Maheshwari, the Group’s Chief Executive Officer, has also been appointed to the Board; and Stephen Vineberg and Matthew Harwood have stepped down from the Board as shareholder representatives of IDB Infrastructure Fund II and Petrofac respectively, with Satjeet Sahota replacing Stephen Vineburg.