Mobil Producing Nigeria Limited (MPN) has reached commercial terms with Qua Iboe Power Plant Limited (QIPPL) for the transfer of ownership of the Qua Iboe power project and gas supply from the NNPC/MPN Joint Venture (JV) offshore facilities to the power plant.
MPN is the operator of Nigerian National Petroleum Corporation (NNPC)/MPN JV.
The General Manager, Public and Government Affairs, MPN, Paul Arinze, said QIPPL is a joint venture between Black Rhino, a wholly owned subsidiary of Blackstone Group and NNPC. The transfer includes the ownership and financing of a gas-fired power plant and a 58-kilometre transmission line.
He said the NNPC/MPN JV will retain its responsibility to fund and build the 53-kilometre offshore pipeline and platform modifications needed to supply gas to the power plant.
The Chairman and Managing Director of MPN, Paul McGrath, said: “This milestone is a key enabler for the project, which will contribute 540 megawatts (Mw) to the national grid when completed.
“This further demonstrates our commitment to support the Nigerian government’s priority of providing electricity to the country and maximising the economic and social benefits of a reformed power sector.”
“We have partnered with a uniquely qualified participant that has demonstrated a strong interest in ensuring the success of the Qua Iboe power project. All stakeholders are continuing to work expeditiously to conclude the necessary agreements for a final investment decision.”
The Group Managing Director of NNPC, Dr. Maikanti Baru, expressed satisfaction with the development.
He said: “The Nigerian National Petroleum Corporation is pleased that we have hit this major milestone on the road towards the realisation of the government’s power generation objectives. We will continue to work with MPN, QIPPL, Black Rhino and other stakeholders to ensure a successful and timely execution of the project.”
Mobil Producing Nigeria has operated in Akwa Ibom State for more than 50 years and remains committed to delivering sustainable and long-term benefits to the communities and government of the state.
The Minister of Power, Works and Housing, Mr. Babatunde Fashola, at power purchase agreement (PPA) signing ceremony between Qua Iboe Independent Power Plant Limited and Nigerian Bulk Electricity Trading Plc (NBET) held in Abuja, said the event was a milestone that is consistent with the Federal Government’s Roadmap on Power and Economic Recovery and Growth Plan (ERGP).
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