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Transcorp, NNPC sign production pact on OPL 281

By The Rainbow
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Transnational Cor­poration of Nigeria (Transcorp) Plc, has entered into a production sharing agreement with the Nigerian National Petroleum Corporation (NNPC) on OPL 281.

Under the agreement signed on Friday, 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 4 trillion cubic feet (tcf) of natural gas reserves.

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 fertiliser production.

The chairman of Trans­corp, Tony O. Elumelu, CON, said, '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.'

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 2000MW 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 is rich with nearly 4 tcf of natural gas, and will support the newly-expanded Ughelli power plant for up to 25 years at 2000 MW per day,' Mr. Elumelu continued, adding, '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.

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