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Nigeria: Gas Flaring – Shell Expends $1 Billion On Iog Project

By Austine Unoarumi

16 November 2009

Port Harcourt — Following the Federal Government’s decision to end gas flaring, Shell Petroleum Development Company (SPDC) says over $1 billion have so far been spent on the Gbaran-Ubie Integrated Oil and Gas project within the last 18 months.

According to the Dutch firm, the project, which will attain a 75% completion stage when completed in 2010, will at its peak produce one billion standards cubit feet of gas each day and more than 70,000 barrels of oil per day for domestic and export purposes, as well as address the issue of gas flaring in the sector.

The Project Manager of Gbaran Ubie Integrated Oil and Gas Project, Mr. Graham Henley, who disclosed this to newsmen, also revealed that following the increasing demand for Nigerian gas for domestic and export as Liquefied Natural Gas -LNG, the Integrated Oil and gas project will drill over 30 new wells as well as build central processing facilities to treat both oil and gas. This, according to him, will further increase production from the area and enable Shell to harness the associated gas produced.

He said as soon as the project is completed in 2010-2011, some of the gas would be utilised for power generation in the Niger Delta region, while the rest will be transported through the SPDC’s new Eastern gas gathering system (EGGS-2) pipeline to Soku via the Nigeria Liquefied Natural Gas company.

Henley said the Gbaran-Ubie project, which is a world class facility, will not only boost Nigeria’s oil and gas resources but would help to reduce gas flaring, which has become a source of concern to the government.

The manager also stated that in a bid to promote local content and enhance the economic development of the Niger Delta, $1.5 billion of the project is to be spent in Nigeria, while over 140 local firms have been provided with services such as pipeline design, protective coating, dredging works, construction of temporary accommodation and building of roads and bridges. He added that 300-500 regular jobs will be provided to employable people from the local host communities.

Henley said as part of efforts aimed at promoting peaceful co- existence, Shell has entered into several Global Memorandum of Understanding (GMOU) covering 44 communities on development strategies.

He called on the Federal Government to also ensure the speedy passage of the Petroleum Industry Bill (PIB) which, according to him, would encourage joint partnership business among oil multinationals.

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