Africa Oil Business News

Wed08202014

Last update11:28:10 AM

Platform Sells Egbeoma Gas Plant For $21Million

Nigerian gas developer, Owei-Linkso, has agreed to pay $21Million to the Platform/Newcross Joint Venture for the purchase of the 30Million Standard Cubic Feet Per Day (30MMscf/d) Gas Processing Plant on the Egbeoma Field in the Western Niger Delta.

The agreement calls for Owei-Linkso to revamp the plant, which was constructed for $39Million, but had struggled with commissioning hitches, as a result of flawed design. Egbeoma field produces 1,600BOPD of oil, but has a high GOR, resulting in significant flaring, a reason for which the plant was constructed in the first place.

The agreement accommodates the interest of Mosenergy, a company which had earlier taken Platform/Newcross to court for allegedly reneging on an earlier agreement granting it 10% equity in the plant as well as sole offtake of the gas. The current status is that Mosenergy gets to offtake some of the products, but the lean gas will be transported via a 48km gas pipeline to Seplat operated Oben field gas facility. The pipeline construction is expected to start in the third quarter of 2014. Seplat and Platform/Newcross JV are currently engaged in right of way acquisition.

Africa Oil+Gas Report