Mobil Producing Nigeria Limited (MPN), operator of the Nigerian National Petroleum Corporation (NNPC)/MPN joint venture, today announced it has reached commercial terms with Qua Iboe Power Plant Limited (QIPPL) for the transfer of ownership of the Qua Iboe power project and the supply of gas from the NNPC/MPN joint venture offshore facilities to the power plant. QIPPL is a joint venture between Black Rhino, a wholly owned subsidiary of Blackstone Group, and NNPC.
The transfer includes the ownership and financing of a gas-fired power plant and a 58-kilometer transmission line. The NNPC/MPN joint venture will retain its responsibility to fund and build the 53-kilometer offshore pipeline and platform modifications needed to supply gas to the power plant.
“This milestone is a key enabler for the project, which will contribute 540 megawatts to the national grid when completed,” said Paul McGrath, chairman and managing director of MPN. “This further demonstrates our commitment to support the Nigerian government’s priority of providing electricity to the country and maximizing the economic and social benefits of a reformed power sector.