Pan Ocean Oil Signs $144m Deal On Gas Project

Pan Ocean Oil Corporation (POOC) signed a $144 million contract agreement with Lemna Energy Resources, a Chinese firm for the phase one of the Gas plant project. The total cost of the project is estimated at well over $250 million.

According to the chairman and managing director of the company, Dr. Festus Fadeyi, the deal, which is in fulfillment of the government's policy in the enhancement of gas flaring in the country, is expected to be commissioned in the next 12 months from the day the agreement was signed.

He added that the gas project, which would send gas from the Afam plant to the Edo region of the Niger Delta and would address the company's plan to increase its production on the Liquefied Petroleum Gas (LPG) and the company's earning and aid its plan of expansion.
                    
 

The Chief Executive Officer (CEO) of the Chinese firm, Mr. Viet Ngo, who was also present at the signing of the agreement, assured the company of its effort to ensure that the target set for 12 months from yesterday, would be met.

Fadeyi who also disclosed that the project is in three phases and would be unfolding one step after the other, adding that the company has had the gas project in the pipeline for the past 23 years, the project started precisely in 1984, and the company is a pioneer in the it as it started making the plans way before Shell and Chevron.

Pan Ocean will invest over 250 million dollars as a final contribution to the effort of the company to develop the project as a Clean Development Mechanism (CDM)project under the Kyoto Protocol, which ensures a sound economic basis for the investment and to be in accord with the flare out policy of the Nigerian government.  The company has been flaring all its gas since 1976, when it started production in the country. he added.