Mobil Producing Nigeria Limited (MPN), one of the largest oil producers in Nigeria and operator of the Nigerian National Petroleum Corporation (NNPC)/MPN joint venture, Thursday announced that it had reached commercial terms with Qua Iboe Power Plant Limited (QIPPL) for the transfer of ownership of the Qua Iboe power project and the supply of gas from the NNPC/MPN joint venture offshore facilities to the power plant.
QIPPL is a joint venture between Black Rhino, a wholly owned subsidiary of Blackstone Group, and NNPC.
MPN which has operated in Akwa Ibom State for more than 50 years, revealed that the transfer includes the ownership and financing of a gas-fired power plant and a 58-kilometer transmission line.
In the deal, the NNPC/MPN joint venture would retain its obligation to fund and build the 53-kilometer offshore pipeline and platform modifications needed to supply gas to the power plant, the company disclosed.
Commenting on the agreement, Paul McGrath, Chairman and Managing Director of MPN, said, “This milestone is a key enabler for the project, which will contribute 540 megawatts to the national grid when completed.
“This further demonstrates our commitment to support the Nigerian government’s priority of providing electricity to the country and maximizing the economic and social benefits of a reformed power sector.
“We have partnered with a uniquely qualified participant that has demonstrated a strong interest in ensuring the success of the Qua Iboe power project. All stakeholders are continuing to work expeditiously to conclude the necessary agreements for a final investment decision.”
Speaking, Group Managing Director of NNPC, Maikanti Baru, expressed his satisfaction with the development.
“The Nigerian National Petroleum Corporation is pleased that we have hit this major milestone on the road towards the realization of the government’s power generation objectives.
“We will continue to work with MPN, QIPPL, Black Rhino and other stakeholders to ensure a successful and timely execution of the project”, he said.
In the MPN-operated Joint Venture with the Federal Government through the NNPC, the government has a 60 percent share, with the remaining 40 percent belonging to MPN.
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