- The Nigerian affiliate of Royal/Dutch Shell [Shell Petroleum Development Company (SPDC)] has sealed a contract with an engineering firm, Hanover Nigeria Ltd, for the construction of a gas processing facility at Gbaran in Beyelsa state in south-eastern Nigeria.
The facility would process and supply fuel gas to the nearby national integrated power plant of the Nigerian government.
"The contract is for the installation, operation and maintenance of the fuel gas processing facility and Hanover Nigeria Ltd is partnering with a wholly indigenous company, Inter Global Procurement and Engineering Services Ltd (IGPES) for the execution of the work," a spokesman for Shell, Mr Precious Okolobo, told journalists in Port Harcourt.
Shell's General Operations, Manager Mr. Andrew Birch, and Hanover Director for Europe and Africa, Mr. William Cotton, signed the contract.
"The contract helps to meet two key national objectives: building of indigenous capacity and helping to meet national power generation aspirations," Mr. Birch said after the signing ceremony. "SPDC is pleased to be part of this important initiative and we are confident of a very positive and productive partnership with Hanover and IGPES."
Under the deal, Hanover is expected to deliver the gas processing facility in the third quarter of 2009 as well and provide at full capacity 80 million standard cubic feet of gas per day to the power plant.
"The Gbaran/Ubie project itself is one of Nigeria’s largest oil and gas development undertakings. As well as supplying the Federal Government’s power plant, it is expected to boost gas supply capability to the Nigeria Liquefied Natural Gas company, eliminate gas flares from nearby oil fields and lay the foundation for further development phases," Okolobo said.
He said the first phase of the project, which has reached 50% completion, was expected to generate US $22 billion as revenue for Africa's most populous country.
So far, the project has employed more than 3,500 Nigerians, and a total of US $500 million had been spent to develop the Nigerian content of the projected US $1.5 billion.
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