Transnational Corporation of Nigeria (Transcorp) and the Nigerian National Petroleum Corporation (NNPC) have signed a contract for the exploration and production of Oil Prospecting Lease (OPL) 281
Under the terms of the production sharing contract (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 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 Tony O Elumelu, chairman of Transcorp.
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 will support the newly-expanded Ughelli power plant for up to 25 years at 2,000MW per day," Elumelu said.
"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."