UTM Offshore, an indigenous oil and gas company, has commenced the development of its 176 million cubic feet per day Liquefied Natural Gas (LNG) floating plant with the Pre-Front End Engineering Design (Pre-FEED) contract of the facility billed for signing tomorrow (Tuesday) between the Nigerian firm and its foreign contractors, JGC Corporations, a Japanese engineering company.
UTM said it would also on the said date, sign a contract with Kellog Brown & Root –KBR Engineering Company, a US-based Engineering, Procurement and Construction (EPC) company, as owners’ engineer, to carry out a third-party review of the Pre-FEED deliverables from JGC on its behalf.
UTM Offshore disclosed this in a letter signed by its Managing Director/Chief Executive Officer, Mr. Julius Rone, and addressed to one of its partners, a copy of which was seen by THISDAY.
It said the signing ceremony for the two contracts would be done virtually in Lagos.
The Department of Petroleum Resources (DPR) had in February issued Licence-to-Establish (LTE) for the first floating LNG production plant for the processing of 176 million cubic feet per day of natural gas and condensate to UTM Offshore Limited.
The Director of DPR, Mr. Sarki Auwalu, had stated during the presentation of the licence to the company in Abuja that the licence signified a major milestone and a reinforcement of the promise and commitment of President Muhammadu Buhari to Nigerians to promote indigenous participation in the oil and gas sector.
He had also stated that the move was to ensure that companies come to Nigeria and do business in an equitable way, to stimulate the economy and create jobs for Nigerians, adding that the licence was a demonstration of governments resolve to harness safe and reliable technology for the development of the oil and gas industry.
