Mobil Producing Nigeria (MPN) Ltd., operator of NNPC, MPN Joint Venture, on Thursday said it had reached commercial terms with Qua Iboe Power Plant Limited (QIPPL) for the transfer of ownership of the Qua Iboe power project.
Mr Paul Arinze, General Manager, Public and Government Affairs in a statement in Lagos, said the agreement included the supply of gas from the NNPC/MPN joint venture offshore facilities to the power plant.
QIPPL is a joint venture between Black Rhino, a wholly owned subsidiary of Blackstone Group, and NNPC.
“The transfer includes the ownership and financing of a gas-fired power plant and a 58-kilometre transmission line.
“The NNPC/MPN joint venture will retain its responsibility to fund and build the 53-kilometre offshore pipeline and platform modifications needed to supply gas to the power plant,” he said.
He quoted Mr Paul McGrath, Chairman and Managing Director of MPN, as saying that “this milestone is a key enabler for the project, which will contribute 540 megawatts to the national grid when completed.
“This further demonstrates our commitment to support the Nigerian government’s priority of providing electricity to the country and maximizing the economic and social benefits of a reformed power sector.
“We have partnered with a uniquely qualified participant that has demonstrated a strong interest in ensuring the success of the Qua Iboe power project.
” All stakeholders are continuing to work expeditiously to conclude the necessary agreements for a final investment decision. Arinze said the Group Managing Director of NNPC, Dr Maikanti Baru, expressed satisfaction with the development.
“The NNPC is pleased that we have hit this major milestone on the road towards the realisation of the government’s power generation objectives. We will continue to work with MPN, QIPPL, Black Rhino and other stakeholders to ensure a successful and timely execution of the project,” Baru said.
Mobil has operated in Akwa Ibom for more than 50 years and remains committed to delivering sustainable and long-term benefits to the communities and government of the state.