NDPR Concludes Gas Sale Agreement With the NNPC/Shell JV

Niger Delta Petroleum Resources Ltd. (NDPR), the operating company and a fully owned subsidiary of Niger Delta Exploration & Production Plc (NDEP), has reached the effective conclusion of its pioneering Gas Sales Agreement.

The agreement formalises the supply of gas produced and currently being flared by NDPR into the NLNG Train 6 at Bonny Island, Nigeria, where it will be further processed and then transported to consumers. The Gas Sales Agreement (GSA) was undertaken with the NNPC /Shell Joint Venture Partners, comprising Shell Petroleum Development Company of Nigeria Ltd, Total and Agip, and marks a significant milestone in the operations of NDPR, being the first such agreement in the country for a Nigerian independent producer.

Additionally, the agreement will pave the way for NDPR to achieve zero gas flare out, thus enabling full compliance with the government’s policy on gas flaring, ahead of the December 2012 deadline. Therefore the processing of Associated Gas, into other by-products, will become a lucrative aspect of the company’s production operations for the benefit of its shareholders, whilst simultaneously boosting Nigeria’s gas conservation and utilisation. It is expected that this agreement will also help reduce carbon emissions and improve the environment for its host communities and ecosystems.

To facilitate this elaborate gas production and processing scheme, NDPR has invested extensively in its gas processing infrastructure, including the building of a gas processing plant and a 21km 12’’ gas delivery pipeline to safely transport the tail gas to the NLNG node at Rumuiji in Rivers State, Nigeria. NDPR will also shortly commence the drilling of a gas delivery well at its Ogbele field, to further augment the volume of gas available for production and processing.

‘After much negotiation, I am delighted that this agreement has been concluded’, said Dr ‘Layi Fatona, Managing Director, NDEP. ‘This agreement is the latest example of our unique approach to the exploration and exploitation of our producing assets, which over the years has seen us become the first publicly owned Nigerian Independent exploration and production company, the first marginal oilfield operator in Nigeria and the first to establish an innovative Host Community Development Trust, to the benefit of communities located within and impacted by our oil and gas production operations.’

Dr Fatona continued, ‘We are a proudly Nigerian company and the conclusion of this agreement will not only help us minimise the environmental impact of our activities, but will also ensure that we achieve the maximum potential from our operations.

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