Seven Energy reiterates commitment to Nigeria’s gas resources
By Yemie Adeoye
Seven Energy, an indigenous gas focused exploration and production company has reiterated commitment to the development of Nigeria’s huge gas resources, just as it also denied not following due process in the strategic alliance agreement between it and the Nigerian National Petroleum Corporation, NNPC.
Speaking on the development, the Managing Director, Seven Energy, Mr. Scott Aitken, said the agreement signed through its subsidiary, Septa Energy, was the result of a three-year discussion with NNPC’s subsidiary, the Nigerian Petroleum Development Company, NPDC, and the Ministry of Petroleum Resources, on how to accelerate development of gas for the domestic market in Nigeria.
“This dialogue resulted in a Memorandum of Understanding, MoU in 2009 with the Ministry of Petroleum, which was then under previous administration of Dr. Rilwan Lukman, and culminated in the signing of the SAA last year.
The subject fields contain substantial gas reserves and the SAA provides the framework under which Seven Energy, through its Septa subsidiary, will assist the Operator, Seplat Petroleum Development Company, and NPDC in ensuring funding and the development of both oil and gas reserves, which otherwise might not get developed in the foreseeable future.”
Aitken further explained the legal framework for the SAA. “The SAA is modelled after other valid service contracts, which NPDC has entered into with oil majors since 2000, under previous government administrations, which are still operational.
Seven Energy followed the same process with all the requisite approvals by NNPC, NPDC and the Ministry. The terms were based on previous valid service contracts and set with reference to objective third-party reserves auditor reports of the fields in question.