Sage Grey is pleased to announce an equity investment in SPL Utorogu Limited. We are proud to have acted as the transaction advisers to Southfield Petroleum Limited for the investment. SPL Utorogu Limited is an SPV between Southfield Petroleum Limited and Nigerian Content Development Management Board. Southfield Petroleum Limited is developing a $60Million 200mmscfd gas processing facility in Utorogu , Delta State. Southfield Petroleum Limited has a 10 year contract jointly with NPDC and NDWestern Limited to process up to 300mmscfd at the OML 34 Utorogu Field.
The OML 34 field is jointly owned by the Nigerian Government through NPDC and ND Western. The field has about 6 Tcf of gas. The OML 34 Utorogu field is a predominantly gas field which currently produces 270mmscfd. The Utorogu field powers a significant portion of Nigeria’s power plants through the Escravos Lagos Pipeline System (ELPS).
Nigerian Content Development and Monitoring Board (NCDMB) is a Nigerian government agency which is tasked with developing Nigerian content in the Oil and Gas Industry. The agency managed the Nigerian Content Fund which is funded by 1% of all Oil and Gas Contracts in Nigeria. The Nigerian Content Fund currently has over $500Million under management. NCDMB has invested in several other laudable and impactful projects such as the Azikel Refinery, Waltersmith Refinery, Rungas Group, Duport Marine, Butane energy amongst many more. Nigerian Content Development Monitoring Board (NCDMB) is the key investor in the equity investment in the Southfield Petroleum project.
Some of the benefits of the project are highlighted below;
• Production of 123,000MT of LPG, 22,000MT of Excess Propane and 72,000MT of Condensate per annum.
• Gas Commercialization: The project aligns with the government’s plan to increase the volume of gas produced locally and make it a commercially viable sector.
• Employment: The project would lead to the direct employment of about 500 Nigerians and the indirect employment of about 2000 Nigerians.
• Business Creation: The project would lead to the creation of over 100 direct business and 400 indirect business which will employ thousands of Nigerians.
• Community Development: The project would lead to the development of host and neighbouring community. SPL has developed a community development plan that will be implemented upon commencement of operations.
• Environmental Sustainability – The project will result in reduction in gas flaring. Gas Processing reduces gas flaring, reduces pollution and increases the development of useful gas products like LPG for domestic and commercial uses.
• Infrastructural Development: Implementation of the project will develop much needed gas infrastructure to meet government gas reform objectives.
