Transnational Corporation of Nigeria Plc and the Nigerian National Petroleum Corporation have signed a production sharing contract for the exploration and production of Oil Prospecting Licence 281, under which Transcorp has committed to a work programme to prove and develop an estimated 104 million barrels of oil reserves, 335 million barrels of probable reserves and approximately four trillion cubic feet of natural gas reserves.
Transcorp said in a statement made available on Sunday that the addition of OPL 281 to its portfolio of oil and gas assets was another milestone in its strategy of creating Nigeria’s leading integrated energy company, operating in production, refining, power generation, petrochemical and fertiliser production.
The Chairman, Transcorp, Mr. Tony Elumelu, was quoted as saying, “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, according to him, is undergoing extensive rehabilitation to add 1,000 megawatts to the existing 1,000 MW capacity, thus doubling the plant’s electricity output 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, the statement added.