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UTM Offshore Limited, a Nigerian energy conglomerate owned by business magnate Julius Rone, has signed a memorandum of understanding with Afreximbank to raise $2 billion to develop Nigeria’s first floating liquefied natural gas project.
The deal, which is subdivided into two tranches, will see the continental bank disburse about $2 billion to support the project’s first phase and another $3 billion in the second phase.
To formally finalize the deal, a signing ceremony was organized and graced by both Afrieximbank President Benedict Oramah and UTM Offshore Managing Director Julius Rone.
The event took place at Transcorp Hilton in Abuja on Dec. 7.
The signing comes several months after the billionaire businessman announced that his company had received the licence to establish a floating LNG production plant in Nigeria.
The move creates an opportunity for both firms to support a future final investment decision on the project.
Incorporated in July 2012, UTM Offshore is an indigenous special-purpose conglomerate actively engaged in diverse sectors of the Nigerian and international oil and gas and maritime markets, including the direct sales and direct purchase of Nigerian crude oil.
UTM Offshore FLNG
In February 2021, the Department of Petroleum Resources granted UTM a license to establish a floating LNG production plant in Nigeria. The proposed facility will source gas from the Yoho Gas Field, which is owned by ExxonMobil and the Nigerian National Petroleum Corporation.
The project is expected to be fully completed in 2026.
Upon completion, it will have an LNG production capacity of 1.2 million metric tonnes per annum, a turret and mooring system, gas pre-treatment modules, LNG production modules, living quarters, self-contained power generation and utilities, as well as operational capacities for LNG storage and offloading.
Commenting on the partnership, Rone said: “The UTM Offshore FLNG will be the first of such a project developed by an African company on the continent. It will also significantly contribute to the Nigerian government’s agenda of reducing the flaring of associated gas across our industry.”
