The federal government has inaugurated a 12million cubic feet gas extraction plant and 20 megawatts gas power plant in Otakikpo, Ikuru, in Andoni Local Government Area of Rivers State.
Inaugurating the project on Tuesday, the Minister of State for Petroleum (Gas), Mr. Ekperikpe Ekpo, disclosed that the plants were built by Otakikpo Joint Venture comprising of Green Energy International Limited, the operator and Lekoil Oil and Gas Investment Ltd, the technical partner of the Otakikpo field PML 11 in the State.
In his remarks, Ekpo who commended the joint venture on the initiative, said the mandate of President Bola Tinubu to him was to drive the development of the gas sector in the country, noting that Nigeria ranks eight in the whole world and largest in Africa with 33 percent of Africa gas reserve.
Ekpo stated that, “The creation of the Ministry of Petroleum Resources (Gas) by Mr. President reflects the foresight and wisdom of Mr. President in ensuring a dedicated and strategic focus on development of our natural resources (gas).
“This bold step is pivotal for actualising Nigeria’s vision for adopting gas as the transition fuel of choice especially as the global discussion of energy sustainability gathers momentum.
“It is gratifying to observe that the joint venture has made significant strides in complying with the provisions of the Petroleum Industry Act (PIA), 2021 particularly your establishment of the distinct midstream entity First Otakikpo Midstream Limited (FOML), to manage the gas business.”
The Minister who assured that the present administration would remain committed to supporting the JV’s aspirations as they continue to expand their investment blueprint within Nigerian gas sector, said, “Another remarkable and commendable milestone worthy of recognition is the development of the 20 megawatts gas to power generation plant which I understand is being deployed to support your rapidly expanding field operations”.
Ekpo stressed that the excess power generated from the power plant would be made available to local industries through the establishment of an industrial park targeting agro-allied ventures, small and medium scale enterprises and the surrounding communities.
Commending the youths of the area for their peaceful disposition while the project was ongoing, said “I am confident that this initiative would stimulate economic activity in the region and significantly improve the standard of living for the host communities.”
In his address, Chairman, Green Energy International Limited, Operator of Otakikpo field, Prof. Anthony Adegbulugbe, explained that the inauguration of the twin projects was the realisation of the firm’s commitment to the federal government to implement a pilot project of the World Bank Gas Flares Reduction Programme (GFRP), based on Small Scale Gas Utilisation Programme (SSGUP).
He explained that their idea was to provide a unique model that ensures oil exploration from the field that not only eliminates gas flares but ensures that the associated gas was monetised through utilisation for domestic gas, power generation and other products in the value chain for the economic advancement of the host communities and the nation generally
Adegbulugbe who stated that the field was awarded to Green Energy International Ltd in 2014 by the federal government, disclosed that the project suffered over 20 months of setback with the COVID-19 pandemic which shut down the entire world.
“But by the grace of God, the Joint Venture undaunted by the unexpected set back at a huge cost overrun, rebounded, and by January last year, we started a test run. At completion, the two projects cost the JV over $60million,” he added.
Explaining further that the installation and operations of the plant have been implemented 100 percent by Nigeria young men and women who cut across a wide spectrum of professional backgrounds with significant numbers from the Niger Delta and Host communities, the Green Energy boss said, “The workforce are managed by a set of world-class professionals at the board and management levels.”
He however, appreciated the cooperation of the Technical Partner Lekoil, led by the Chief Executive Officer, Mr Olalekan Akinyanmi, saying “Upon entering into a partnership with us, the company aligned with our vision, and we have jointly achieved this successful outcome.”
Also in his remarks, the Lekoil boss, Mr. Olalekan Akinyanmi said the event marked a significant milestone not just for Lekoil and Green Energy International but for Nigeria’s energy future.
“The commissioning of the Otakikpo LPG Extraction Plant and the 20MW Gas-to-Power Project is a testament to the power of collaboration, vision, and unwavering commitment to sustainable energy solutions,” he added.
According to Akinyanmi, “From the very beginning, our partnership has been anchored on a shared mission to unlock the full potential of the Otakikpo Field, harness our nation’s vast gas resources, and drive economic transformation through reliable power generation.
“What we see here today is a direct result of that synergy. Together, we have demonstrated that when companies align their strengths, expertise, and ambition, we can deliver innovative solutions that benefit not just our stakeholders, but the communities and industries that rely on us.”
He also expressed his gratitude to Green Energy International, their partners, the government, and all those who contributed to making the project a reality.
