Abuja------------The Nigerian National Petroleum Corporation, NNPC, and Sterling Exploration and Energy Production Company, SEEPCO, have signed an agreement for the development and commercialisation of gas from the Oil Mining Lease, OML, 143, according to a statement signed by NNPC spokesman, Dr Kennie Obateru in Abuja weekend.

The NNP said the agreement will help to reduce gas flaring in the country.

According to Obateru, the Group Managing Director of NNPC, Malam Mele Kyari, reportedly stated that the execution of the deal was a great milestone and a testament to NNPC’s commitment to facilitating the nation’s transformation into a gas-powered economy.

"The deal will not only help reduce gas flaring and its environmental hazards, but will also promote gas production and utilisation in the domestic market,” he also said and commended SEEPCO for its unwavering commitment to gas development and commercialisation in the country.

According to him, this had led to the establishment of a Special Purpose Vehicle that would help expand gas utilisation in the country as a cleaner, cheaper and more reliable alternative form of energy.

Replying, SEEPCO Chairman, Mr Tony Chukwueke, described the deal as an essential partnership that would help the company fulfill the pledge it made to support the efforts of the Nigerian government to eliminate gas flaring by monetising it.

This was even as he commended NNPC and the GMD for ensuring the execution of the agreement, pointing out that it was central to the achievement of the company’s cardinal objective of boosting the production of Liquefied Petroleum Gas, LPG), condensate and dry gas for the Nigerian market.

Chukwueke pointed out that the company had invested about $600 million for that purpose.