FG Tasks Oil Firms On Gas Policy

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The Minister of State for Petroleum Resources, Dr Ibe Kachikwu has urged ExxonMobil and other International Oil Companies (IOCs) operating in Nigeria, to key into the gas commercialisation policy of government for gas development in the country.
Kachikwu gave the advice while fielding questions from newsmen after visiting the ExxonMobil’s Erha Floating Production Storage and Offloading (FPSO) facility in Lagos, yesterday.
An FPSO unit is a floating vessel used by the offshore oil and gas industry for the production and processing of hydrocarbons for the storage of oil.
The Erha FPSO has a liquid storage capacity of 2.2 million barrel, making it one of its biggest kind in the world.
The Erha field and Erha North satellite field, were completed in 2006.
The fields are located approximately 97km offshore Nigeria, in water depths ranging from 1,000m to 1,200m.
The fields were developed with an investment of $3.5billion.
He said that gas would be parallel income stream for the country if everyone key in to implement the gas commercialization policy.
“There is so much we can do with oil, we are doing that. I like to see oil go up in barrels, up to 3 million barrels but most importantly, I like to see gas begin it life.
“If you look at the production, a lot of gas is been rejected. And everybody is talking of gas in the country and gas is going to be parallel income stream for the country.
“We have talked about it too much, but fiscal terms have to be agree on PSC terms, commercial terms for gas need to be agreed and once we unlock that, the issues of power becomes secondary.
“My message here today is, thanks for the fantastic work you are doing but there is a huge amount of work left undone,’’ he said.
He said that the country had volume and reserves of oil to produce in the next 40 to 50 years but the gas was still lying untapped.