BREAKING: NNPCL, Indorama Seal Pact To Unlock $18bn Revenue For Nigeria

The Nigerian National Petroleum Company Limited on Saturday signed an agreement with Indorama Petrochemicals Company Limited to deepen Nigeria’s Nigasification strategy.

The move, which would unlock about $18bn revenue for Nigeria will enable the NNPCL and Indorama explore and develop suitable opportunities within the remits of both party’s interests across the hydrocarbon value chain in Nigeria.

The Group Chief Executive of the NNPCL, Mallam Mele Kyari signed the agreement for the national oil company while the MD of Indorama, Manish Mundra signed on behalf of his company.

Speaking at the event, Kyari said the NNPCL as the national energy company has one of its roles as enshrined in article 64(i) of the Petroleum Industry Act (PIA) to promote the use of natural gas through the development and operation of large-scale gas utilization industries.

According to him, this role is in alignment with its Nigasification strategy which is a consolidation of critical programs embarked upon by NNPC to utilize natural gas and its associated liquids to be the energy source of choice, spur economic growth, free up crude oil for exports, and ultimately enable job creation.

Indorama plans to operate the largest Petrochemical Hub in Africa, and it currently owns the world’s largest single-train Urea Plant located in Port Harcourt Nigeria.

The company is currently working on expansion plans within the next six years, in the gas-based heavy manufacturing industries including fertilizer, methanol, and petrochemicals.

Kyari said with this alignment of objectives to promote the development and use of natural gas for large-scale heavy gas-based industries, the NNPCL and Indorama, agreed to entered into the MoU.

Listing the key benefits of the pact, Kyari said it would assist in the monetization of over 1.7 TCF of gas and 100 million barrels of oil reserves, generation of upstream lifecycle revenue of over $18bn including government take of over $7bn, downstream production of about 4.8 MTPA of products including methanol, urea, and fertilizer to boost national food security.

Other benefits, he added, include the creation of direct and indirect employment, the development of a condensate refinery to boost petroleum product supply and reduce product importation, annual GDP contribution of over $3.8bn, and attraction of over $7bn of foreign direct investment into the country.

The MoU, the NNPCL Boss noted, marks the beginning of a journey of co-created solutions between the two companies that will contribute significantly to the double-digit economic growth rate aspiration of the government and generate tremendous value for all the stakeholders including the investors, the companies, the community, and the country at large.

In his comment, the Indorama Boss said the partnership with NNPC and indorama ihas lasted for almost 17 years old adding that both company have work collaboratively in the area of petrochemicals.

He said Nigeria’s gas reserves and strategic location should position the country as one of the largest producers of urea, one of the largest producers of ammonia, the largest producers of methanol and the largest producer of petrochemical polymers.

He said, “What we are going to do is while we are working together on gas resources, what we are going to do for the downstream and invest is two more lines of fertilizer, two lines of methanol and one big petrochemical project besides the condensate refinery and other pipeline infrastructure.

“This will already put Nigeria as not the largest producers of urea in Africa and Western Hemisphere. And at the time, this is just one example. NNPC can create almost 10 to 15 partnerships. Imagine when we start here.

“The ball is rolling now and it’s our responsibility that we work together. We partner together, grow together, invest and distribute the benefit of this industrialization positioning.”

He commended President Bola Tinubu for his visionary leadership and assured the NNPCL GCEO that Indorama will not fail in meeting up with it’s terms of the partnership.

Earlier, Bala Wunti, the Chief Upstream Investment officer, NNPC Upstream Investment Management Services; said through the pact, about 800 million SCF of gas will be made available for domestic use.

He commended the NNPCL GCEO for providing the needed support to ensure that the deal becomes a success.

“Today, we are here just to put pen to paper in terms of the intention that GCEO directed and therefore, we like to thank the leadership of the NNPC and the Indorama leadership for giving us the opportunity,” he added.