Elumelu Commends FG Over Transcorp, NNPC Contract

The Federal Government has been commended for opening the petroleum sector to local participation. Tony Elumelu, chairman, Transnational Corporation of Nigeria, Transcorp Plc, made the commendation last weekend as Transcorp and the Nigerian National Petroleum Corporation, NNPC, signed a production sharing contract for the exploration and production of OPL 281, under which officials said Transcorp is committed 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.

“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,” said Elumelu.The addition of OPL 281 to its portfolio of oil and gas assets is another milestone in Transcorp’s strategy of creating Nigeria’s leading integrated energy company, operating in production, refining, power generation, petrochemical and fertilizer production.

Transcorp’s existing investment, the Ughelli power plant in Delta State, is undergoing extensive rehabilitation, adding 1,000 megawatts, MW, to the existing 1,000 MW capacity, thus doubling the plant’s electricity output to 2,000 MW over the next three to five years, in collaboration with General Electric, 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 four tcf of natural gas, and will support the newly-expanded Ughelli power plant for up to 25 years at 2, 000 MW per day,” Elumelu stated, adding that “this volume of reserves also guarantees 15 years of feedstock supply for our future fertilizer and petrochemical plants, which will utilize 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 engagement includes a medical clinic in Ughelli, part of a wider programme of improving access to quality healthcare. Elumelu also commended the Minister of Petroleum, Diezani Allison-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 addresses our pressing social needs. We look forward to continuing to play a leading role in this vital process,” Elumelu said. Transcorp is a national conglomerate with 300,000 Nigerian shareholders,

 

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