Nigerian offshore interest UTM Offshore has signed a Memorandum of Understanding (MoU) to develop West African sub-Sahara’s first FLNG production unit.
The MoU was signed with the African Export-Import Bank (Afreximbank) to raise an initial $2 bill with a commitment for another $3 bill.
This will go towards UTM taking a final investment decision (FID) on the project, the company explained and follows a pre-FEED agreement signed by the developer in May.
UTM said that it intends to reduce gas flaring, attract major investments and also create trade and economic markets for natural gas exports.
The company also explained that it plans to acquire and finance a 1.2 mill tonnes per annum FLNG with a capacity to process 176 mill cu ft per day of natural gas and condensate.
The block for which the FLNG is earmarked is located in the Yoho Field, operated by a joint venture involving the operator ExxonMobil (40% equity stake) and Nigerian National Petroleum Corp (NNPC) with 60%.
It was estimated that the the FLNG will be completed by 2026 and will be fully equipped with a turret and mooring systems, gas pre-treatment modules, LNG production modules, living quarters, a self-contained power generation system and utilities, as well as capacity for LNG storage and offloading.
