Chineme Okafor in Abuja
The Department of Petroleum Resources (DPR) has granted the operator of the Otakikpo marginal field in Oil Mining Licence (OML) 11 — Green Energy International Ltd — a licence to build a Liquefied Petroleum Gas (LPG ) extraction plant in Ikuru area of Rivers State.
According to a statement from the Director, Legal and Corporate Matters of Green Energy, Mr. Olusegun Ilori, on Thursday in Abuja, the Licence to Establish (LTE) granted it by the DPR would cover for the construction of 12 million standard cubic feet per day (mmscfd) capacity LPG plant.
Ilori explained that the licence approval was part of a pilot gas project approved by the federal government for its zero gas flares operation in the country.
He noted that the company, which began oil production in February 2017, was determined to ensure full utilisation of the gas produced from its field for LPG and power generation, adding that the approval has made it possible for it to take a final investment decision (FID) on the gas project and awarding the Engineering, Procurement, Construction (EPC) and installation of the LPG extraction plant to PCC-LAMBDA Consortium, formed between Nigeria indigenous companies and a Chinese company – Peiyang Chemical Equipment Co. Ltd (PCC).
PCC, he noted, is also the original equipment manufacturer (OEM) and will be responsible for manufacturing and design activities associated with the LPG project.