Babajide Okeowo
Oando Plc, Nigeria’s leading indigenous energy group has through its upstream subsidiary, Oando Energy Resources, announced the successful signing of two Gas Supply Agreements (GSA) with the Nigeria Liquefied Natural Gas Ltd (NLNG), for the renewal of gas supply for the existing Trains 1-3 for a term of 10 years and for gas supply for the impending Train 7 for a term of 20 years.
The NLNG GSAs were signed by Mr. Tony Attah, Managing Director, NLNG; Mr. Massimiliano Bertona, General Manager Commercial & Negotiations, NAOC, representing Managing Director of NAOC; Alhaji Mansur Sambo, Managing Director, NPDC and Wale Tinubu, Group Chief Executive, Oando Plc and the event was chaired by Mallam Mele Kolo Kyari, Group Managing Director, Nigerian National Petroleum Corporation, NNPC.
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Commenting on the agreement Tinubu said: “We are particularly pleased to be the only indigenous company party to the NLNG supply agreement, a testament to the potential of local players.
The NLNG vehicle will support the Federal Government’s efforts to grow reserves, boost the country’s gas footprint and market share in the global LNG market and in-turn positively develop the Nigerian economy – a goal that we are aligned with and have always wholly endorsed. The signing of these two agreements confirms and consolidates our long-term partnership with NLNG; furthermore, it is a validation of NLNG’s confidence in our operational track record.
The execution of the GSA is another positive stride in our journey to becoming the leading independent exploration and production company; being a 20 year guaranteed income stream it will strengthen our financial position as well as demonstrate to our key stakeholders the Company’s growth potential. Finally by way of this agreement and in line with our increased focus on sustainability and social impact the JV is closer to its objective of achieving zero gas flare in the immediate future.
