As further demonstration of its renewed commitment to the development of indigenous capacity in the oil and gas sector, through funding, Skye Bank Plc has provided funding for Pan Ocean Oil Corporation’s Ovade-Ogharefe Gas Processing Plant.
The Ovade-Ogharefe Gas Processing Plant was designed as a Carbon Emission Reduction Project with the capacity of delivering 200million standard cubic feet per day of gas (mmscf/d) of dry gas to the domestic gas market for power generation and industrial development.
The Gas Plant is located in the Ovade-Ogharefe area of the Niger Delta Region.
Pan Ocean is the operator of the Oil Mining Lease (OML) 98, with 40 per cent equity, while the Nigerian National Petroleum Corporation (NNPC) has the remaining 60 per cent.
Skye Bank provided funding for Pan Ocean’s 40per cent equity under the Joint Venture with NNPC.
Executive Director, Corporate and Investment Banking, Skye Bank Plc, Mr. Timothy Oguntayo, said in a recent statement that the funding to Pan Ocean Oil was another demonstration of the active supports of the bank towards actualising the Federal Government’s local content aspiration in the oil and gas sector.
He noted that the gas plant would not only benefit all stakeholders, but also improve Nigeria’s environment rating.
He said the plant will, among other things, ensure zero routine flaring in all areas of its operation due to the adopted modularised plant concept, which makes the plant expandable for additional gas finds in its concession areas.
Oguntayo stated that Skye Bank’s partnership with Pan Ocean Oil Corporation (Nigeria) Limited had been credited with the company’s success in processing gas which could have been flared from its gas processing plant.
According to him, rather than flare the gas emanating from its operation, Pan Ocean Oil processes its gas in compliance with the carbon credit scheme of the United Nations Framework Convention on Climate Change (UNFCC) for which the company was qualified in February 2009.
Oguntayo reiterated that despite the challenges associated with oil and gas finances, Skye Bank would continue to support committed Nigerian investors who had defied the odds by making substantial investments in the sector in order to raise the Nigerian flag high.
The gas plant earns carbon credits under the Clean Development Mechanism (CDM) of the United Nations’ Kyoto Protocol.
Pan Ocean had initiated a CDM certification for its gas utilisation project as part of its contribution to improving Nigeria's image as a green oriented country in line with the United Nation’s Kyoto protocol.
With the CDM, reductions in greenhouse gas emission from projects in developing countries are registered and monitored under the United Nations Frame work Convention on Climate change (UNFCC) and sold to developed countries that have limits for their emissions.
Known for its very tough and stringent entry requirements which are difficult for the indigenous investors to meet, the Nigerian oil and gas industry has been dominated by foreign corporations. Besides the overriding influence of foreign multinational oil companies in terms of industry operations and size, industry estimates also indicate that more than 60 per cent of the senior management officers and highly skilled technical managers are expatriates.