Nigeria’s quest for energy transition received a huge boost on Wednesday when an indigenous firm, UTM Offshore Limited, signed agreements with three technical partners, Kellogg Brown and Root (KBR) UK, Japan Gas Corporation (JGC) and Technip- Energies Limited, for the commencement of the Front End Engineering Design (FEED) for Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility. The agreements were signed at a brief but colourful ceremony at the Hilton Park Lane, London, UK. The FEED contract with the three firms essentially entails conducting for UTM Offshore Limited various studies to figure out technical issues and estimate rough investment cost for the FLNG facility prior to the Engineering, Procurement and Construction (EPC) phase of the project. The time line for this phase of the FLNG project is 10 months.
The FEED contract signing is a follow-up to the successful execution of the pre-FEED agreement between UTM Offshore with JGC, a leading international engineering design, procurement and construction firm. The Pre- FEED scope was completed within four months from commencement date. KBR provided due diligence on the JGC scope by conducting a third-party review of all deliverables from JGC during the Pre-FEED. UTM Offshore entered into the pre-FEED agreement with JGC and KBR in May 2021. Speaking at the FEED contract signing event, the Minister of State for Petroleum Resources, Chief Timipre Sylva, applauded the pioneering efforts of Mr. Julius Rone and UTM Offshore Limited, and said the Federal Government will continue to support and create the enabling environment for business investments in the country, especially in the area of gas development.
“The PIA is already improving the petroleum industry’s reputation, paving the way for new investments; creating jobs, supporting the economic diversification agenda and strengthening Nigeria’s ability to fulfill the world’s expanding energy demand,” he said. At the signing ceremony, the Managing Director and Chief Executive Officer of UTM Offshore Limited, Mr Julius Rone underscored the fact that like most other nations of the world, Nigeria is keen on, and working assiduously towards achieving energy transition. The President of African Export Import Bank (AfreximBank), Prof Benedict Okay Oramah, lauded the tenacious and transparent pursuit of the FLNG project by Mr. Julius Rone and his team members at UTM Offshore Limited and pledged the full backing of the Bank for the FLNG Project.
