Penspen has been awarded a contract by Sirius Group to carry out an engineering study for the monetization of gas reserves from oil fields, offshore Niger Delta.

The aim of the agreement is to develop the gas reserves of the OML-122 field, in the Niger Delta region, 40 km from the shoreline, South of Nigeria.

The study is part of Project Dawn. It is a three-year development project worth $1.2 billion. Project Dawn includes the construction of a pipeline network which will deliver gas to the Escravos- Lagos Pipeline System (ELPS) designed and built under the management of Penspen twenty years ago. Gas from the Project Dawn is to feed power plants and diverse industrial applications in Nigeria.

Under the Gas Sale and Purchase Agreement (GSPA) between Sirius Oilfield Support Services Ltd and the Nigerian Gas Company (NGC) an affiliated company of NNPC, Project Dawn is estimated to present 250 Mmscf/d of natural gas.

The engineering study to be conducted by Penspen is to include an assessment of the OML-12 field development, subsea gas pipeline and onshore central processing facility. The study is to also determine the extent of the new pipeline, the facilities needed and calculate the total investment needed for the project.

The project is scheduled to include workshops in Nigeria. It is to cover the screening of options and also the decision and risk analysis.

“We are pleased to have been selected by Sirius Group to provide our engineering expertise for this significant study, which will increase availability and improve accessibility to energy across the region. I am confident our team’s reputation and experience in conducting similar engineering studies worldwide will benefit and deliver value in developing infrastructure for Nigeria’s gas network”, Peter O’Sullivan, CEO of Penspen told Energy-pedia.