Asuokpu/Umutu Gas Recovery and Marketing Facility, owned by an indigenous Oil and Gas Producing Company, Platform Petroleum Company has been registered under the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM).
The Project activity will involve recovery of the dry associated gas that is currently flared at the Asuokpu/Umutu Marginal Field and delivery to the Nigerian domestic gas market for productive use as an energy product.
The project activity comprises installation of new compression facilities adjacent to the Umutu oil facilities and 45 km pipeline to transport the gas from the Asuokpu/Umutu marginal field to the existing gas system at Kwale and further into the Nigerian Agip Oil Company (NAOC) gas network for beneficial use primarily within the Niger Delta.
According to the Honourable Minister of Environment, Mr. John Odey, and the Designated National Authority (DNA) in the Special Climate Change Unit of the ministry, the CDM project activity will apart from contributing to the sustainable development of Nigeria by providing reliable gas supplies to strengthen the national electricity system, result in greenhouse gas emission reduction.
Also the new CDM project has the potential to improve national resource management through full utilization of the energy resources produced at the field. It would equally generate new employment opportunities for Nigerians and support the country’s gas flare-out policy.
The project is Nigeria’s third gas recovery project and the fourth registered CDM for the country.
Platform Petroleum, a strategic partner of the Climate Change Unit of the Federal Ministry of Environment, operates a full-cycle, integrated Oil and Gas Production, Processing and Marketing Chain.
Platform Petroleum Limited won the bid for the Asuokpu/Umutu Marginal Field located in block OML 38. After executing a farm-out agreement with the previous concessionary (Shell/NNPC JV) in 2004, the field was handed over to Platform in November 2004.
On April 1, 2005, Platform executed a Joint Venture Agreement with Newcross Petroleum Limited resulting in a 60/40 equity ownership of the field with Platform remaining the operator (Platform Newcross JV).
At the moment there is neither an existing gas market in the near vicinity of the Asuokpu/Umutu field nor any existing gas transmission lines. Platform Newcross JV is currently finalizing the design of the infrastructure needed to implement a marketing option for surplus gas from the field.
The installation and operation of this infrastructure is the CDM project activity.
The primary benefit of the CDM project activity is the reduction in the emissions of greenhouse gases and the productive use of the recovered gas. This will serve as an important step in Nigeria’s efforts at using CDM to address the climate change issue.
Further as Platform is a Nigerian owned company, it signifies the ability of local Nigerian companies and the society to participate in Clean Development Mechanism.
The recovered gas is planned to be used to further economic development in the Niger Delta, a region that has suffered from both environmental problems and under-development.
The successful implementation of this project will contribute to improving this situation.