Nigeria’s Department of Petroleum Resources (DPR) has awarded a licence to privately-held company UTM Offshore to allow it to establish Nigeria’s first FLNG production plant.
UTM Offshore plans to install a liquefaction unit with a capacity of 1.2 mill tonnes per annum, sourcing gas from the Yoho field, which lies in Oil Mining Lease 104, offshore Nigeria.
The Nigerian government holds 60% interest in the Yoho crude oil joint venture, through NNPC, while ExxonMobil’s MPN holds the remaining 40% and operates the development that started production back in 2003.
The field also produces gas but it is reinjected to eliminate flaring and maximise oil recovery.
The plant would have a capacity to process 176 mill standard cu ft per day of natural gas and condensate with natural gas feedstock from Oil Mining Lease 104, according to Nigerian law firm Templars, which is advising UTM Offshore on the development and financing of the FLNG project.
In addition, the law firm said work would now continue until completion of the project which would “contribute to the actualisation of the zero flare policy of the Nigerian government, as well as increasing Nigeria’s LNG production capacity.” according to local media.