UTM Offshore Limited (UTM) signs MoU to raise $2 billion for the floating liquefied natural gas plant
The Group Managing Director / CEO of the UTM Group of Companies: Mr. Julius Rone signs the MoU for the development of first Floating LNG production plant in West African Sub Saharan region. In partnership with African Export-Import Bank (Afreximbank) raised an initial sum of $2 billion for the first phase, with a commitment for $3 billion in the second phase.
This is in line with the firm’s strategic partnership to support a future final investment decision (FID).
The MoU agreement milestone follows the Pre-FEED Agreement signing which was conducted in May, experts assert that UTM is well on course for the delivery of this project. The company aims to impact the energy sector in the region by reducing gas flaring, attracting major investments, and also establishing trade and economic markets for Natural Gas export. The President and Chairman of Afreximbank lauded UTM’s achievement in spearheading this project and also to affirm the support of the bank .
“This is a landmark project that Afreximbank takes very seriously” ~Prof Oramah
UTM aims to develop and finance a 1.2m tonnes per annum FLNG facility with a capacity to process 176 MMscfd of natural gas and condensate. The block is located at the Yoho field which is operated by the joint-venture of ExxonMobil (operator, with 40% equity) and the NNPC with 60%.
The CEO, Mr Rone, forecasts the completion of the floating LNG plant in 2026. Fully equipped with Turret and Mooring System, Gas pre-treatment modules, LNG production modules, living quarters, self-contained power generation and utilities as well as capacities for LNG storage and offloading.
The agreement was signed in Abuja, ably coordinated by the representatives of the Project, Afreximbank – Prof. Benedict O. Oramah and The CEO, UTM Offshore Limited – Mr Julius Rone, as witnessed by Directors of the Nigerian National Petroleum Corporation (NNPC); Executive representatives of UTM, Afreximbank, amongst other corporations.