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Tag: UTM FLNG

  • Delta N42bn investment in UTM FLNG wise decision

    Delta N42bn investment in UTM FLNG wise decision

    The investment and acquisition of 8%stake in UTM Floating Liquefied Natural Gas plant by the Delta State government is adjudged as best and wise decision ever taken.

    This is so, because Delta State government will continue earn extra  revenue from the investment in UTM FLNG, which will further boost or solidify the financial base of the State.

     At it stands, the money or resources that comes from Federal Allocations and Internally Generated Revenue  appears not sufficient enough for Delta State government to run the State.

    The long-term investment in UTM FLNG will bring in sufficient money that will help the government embark on more rapid development across the state.

    It is a right and timely decision taken by the Delta State government by grabbing and utilizing that life-time opportunity to invest in UTM FLNG.

    Recall that the Delta State government missed similar investment opportunity to acquire stake from the 45% shares of Shell Petroleum Development Company SPDC, when the multi-national oil company divested some onshore assets in Delta State. 

    This happened sometime in the mid 2012. The international oil company, SPDC and Joint Venture partners  announced plan to move away from land operations and sold entire 45% stake in OMLs 30, 34, 26, 40, and 42, all located in Delta State.

    Imagine, if the Delta State Government in 2012, had acquired a minimum of 5% shares/stake in OMLs 30, 34, 26, 40, and 42. By now, the Delta State government would have been drawing or earning more resources from the investment in those crude oil assets.

    Unfortunately, that investment opportunity was lost because the Delta State government never contemplated or reasoned in that direction.

    This is why kudos must be given to Delta State government and  former Governor Ifeanyi Okowa for acquiring 8% stake in the UTM FLNG.

    Such investment in UTM FLNG is for the benefit of Delta and will be generating extra resources for the state in the long run.

    Though, UTM FLNG operational base is in OML104, Akwa Ibom State, the Headquarters is in Warri, Delta State, that will create employment opportunities for Delta youths and women.

    It is an ideal decision that the UTM FLNG is sited in OML104, a field that has 2.2 trillion cubic feet of proven gas reserves.

    Interestingly, it is expected that UTM FLNG will start  production in 2029 and will produce 2.8 million tonnes of liquefied natural gas (LNG) annually for export. This is huge and Delta State government investment will yield accruable dividends.

    Commendably, the 8% stake of Delta State government in UTM FLNG, is safe because the Group Managing Director, Mr. Julius Rone (OFR), is from Delta State.

    Contrary to wrong insinuation that the UTM FLNG will not be achieved, it is also worthy to know that the Nigerian Federal  Government through the Nigerian National Petroleum Company  Limited NNPCL, has  20% stake, which is why the project will succeed.

    The incumbent Governor of Delta State, His Excellency, Sheriff Oborevwori deserved commendation for supporting the State investment in UTM FLNG.

    The people of Delta State must put away sentiment and look at the significance and future benefits of having an investment of  8% stake in UTM FLNG.

    Also Delta State Government Investment is over 200BN based on the current UTM FLNG Project Valuation based on PWC Investment report on the Project.

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    Findings have revealed that other investors are buying into the UTM FLNG project because of the viability of the project.

    It is worthy to note that Delta State investment is over 450% as at today.

    Interestingly, the UTM Offshore Limited is the first indigenous private company in Nigeria, to build such a magnificent Floating Liquefied Natural Gas plant in the country.

    In conclusion, the Delta State government should also exploit more investment opportunities that will be of great future benefits to the state.

    Kudos to the Group Managing Director, Mr. Julius Rone (OFR), UTM Offshore Limited, for that wonderful vision on building UTM FLNG Plant and also thanking former Governor Ifeanyi Okowa for saving for the future of Delta State and it’s citizens by acquiring 8% stake in UTM FLNG.

  • UTM FLNG Ltd inaugurates board

    UTM FLNG Ltd inaugurates board

    The consistent focus of the government and President Bola Tinubu to ensure gas-based prosperity is yielding positive results through the rapid progression of the UTM Floating LNG project.

    The progress is further enabled by the Group Chief Executive Officer of NNPCL, Mallam Mele Kyari and support of the NNPCL leadership, including ongoing coordination to positively close out the Exxon Mobil-Seplat divestment in conjunction with the NUPRC.

     The Board of Directors of UTM FLNG Ltd, developers of the first floating liquified natural gas facility in Nigeria, had its maiden meeting on Tuesday 23rd July, 2024, at the Transcorp Hilton Hotel, Abuja.

     The meeting thoroughly evaluated and approved the progress of the company, particularly the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) phase and noted that the company is on track to achieve Final Investment Decision (FID) by Q4 2024.

     The Board which has full representation from the Founder Shareholders, NNPC Ltd, Delta State Government and the UTM Offshore Ltd, expressed delight at the strict adherence to international standards, best practices and quality assurance at all levels of the project.

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    It directed the company to expedite action on the management and organisational structure to ensure smooth takeoff of the construction phase of the project.

    Speaking at the end of the meeting, the Managing Director and Chief Executive Officer of UTM FLNG, Dr. Julius Rone assured that the company had laid all processes to ensure a smooth takeoff and targeted production capacity of 2.8 million metric tonnes per annum by Q4 2028.

    He added that the company is concluding all the necessary approvals from appropriate agencies and regulators.

    “The Board met today and evaluated all the processes and progress the company has made in the effort to develop the first indigenous floating LNG in Nigeria and in fact in Africa.

    “Board members were delighted by the progress made so far particularly on the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) phase. It directed that the management should ensure the Final Investment Decision (FID) is taken by the fourth quarter of the year.

    “So, our Company is set for FID before the end of this year and on completion in Q4 2028 it will have a production capacity of 2.8 million metric tonnes of natural gas, 450 metric tonnes of LPG and other liquids per annum for export and domestic consumption.

    “This is a huge step which we believe will leapfrog the economy by ensuring availability of gas at lower cost for household, automobile and industrial uses. It will also generate massive employment and multi-million Naira business opportunities for Nigerians”, he said.

    Dr. Rone stressed that gas resource is a key driver of economic growth and development for Nigeria with her nearly 209 trillion cubic feet (TCF) of natural gas reserves which ranks as the 9th highest in the world.

    The UTM boss also commended President Bola Ahmed Tinubu for encouraging private investments and creating the enabling environment for companies like UTM FLNG to thrive in the overall interest of the country.

    Members of the Board at the meeting include the representatives of the NNPC Ltd led by NNPCL Executive Vice President, Gas, Power and New Energy, Mr. Olalekan Ogunleye; General Manager Gas Development, NNPCL, Dr. Salihu Jamari; while the Delta State Government was represented by the Permanent Secretary Ministry of Finance, Mr. Gibson Pinnick.

    Other Board members include MD/CEO of UTM FLNG, Dr. Julius Rone; Chief Akin Ricketts, Ms. Doyin Adelabu and Engr. Sadeeq Mai-Bornu who acted as Protem Chairman of the meeting.

  • UTM’s floating LNG project moves to EPCIC stage

    UTM’s floating LNG project moves to EPCIC stage

    The first indigenous floating liquefied natural gas (LNG) company in Nigeria, UTM Offshore Floating Liquefied Natural Gas (UTM FLNG), has said it is set to move to the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) stage of the project.

    UTM Managing Director and Chief Executive Officer, Dr. Julius Rone, announced this during a visit to the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Felix Omatsola Ogbe, at the Board’s Corporate Office in Yenagoa, the Bayelsa State capital.

    Rone said his company had obtained the necessary approvals for the EPCIC stage, adding that the required international standard was being adhered to at all levels of the project.

    The CEO hailed the NCDMB for providing the needed technical support in its field operations.

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    “Today, we are pleased to present to you Nigeria’s first floating LNG. It will please you to know this is the first indigenous company in Africa to develop a floating LNG. We are building the project in line with the international standard. I am happy to announce that we are moving to the EPCIC stage of the project.

    “This project has received tremendous support from the NCDMB. They have been piloting and guiding us in all our processes. We have been working with your team all the way on this project and we’ve got all the approvals needed to conduct a prefill that supported us into the field.”

    “So, we deemed it fit to come and intimate you of the progress of the project: where we are and when we believe that this project will come on stream,” Rone said.

    The UTM boss congratulated and praised the NCDMB Executive Secretary for his efforts at effectively piloting the content development of the oil and gas industry, particularly in the area of research and development (R&D) framework.

    He said this had continued to provide necessary support for homegrown innovations initiated by UTM.

    Ogbe hailed UTM for its courage in taking up the project.

    The NCDMB chief executive promised that the board would continue to support the project till completion.

    He also promised that in line with President Bola Ahmed Tinubu’s directive, the NCDMB under his leadership would continue to create an enabling environment for companies like UTM FLNG to thrive in the interest of the country.

    “We are pleased with the results and level of work done so far. I know that it has not been easy as a local content group. Seeing a Nigerian with this type of ambition is an amazing thought, and it gladdens my heart.

    “I commend your company for taking this bull by the horn. You can rest assured of the support of this board to bring this project to completion. That is what President Tinubu wants us to do – to create an enabling environment for companies like yours to thrive, to create jobs and to be able to deliver,” he said.