Nigeria steps closer to its first FLNG project

UTM Offshore has signed a shareholders agreement with Nigerian National Petroleum Corporation (NNPC) and the Delta State government to build Nigeria’s first FLNG project, the indigenous independent announced on Friday.

Under the deal, UTM Offshore will take a 72% stake alongside partners NNPC with a 20% stake and Delta State with the remaining 8% stake.

The USD 2.1-billion FLNG project will have the capacity to process 1.8 billion tonnes of gas per year, including 300,000 tonnes of LPG.

The development will source its gas from the offshore Yoho field on the OML 104 concession, which is operated by ExxonMobil with a 40% stake in partnership with NNPC with a 60% stake.

The project’s FID is expected in Q1 2024, and the engineering contract is expected to be rewarded in Q2 2024.

UTM Offshore awarded JGC Corporation the pre-FEED works for the project in May 2021.

In November 2022, a consortium consisting of JGC Corporation and Technip Energies was awarded the project’s FEED work.

NNPC signed a heads of agreement with oil and gas operator UTM Offshore in July 2023.