The execution of the Term Sheet for a Gas Sale and Aggregation Agreement (GSAA) between Nigerian National Petroleum Corporation (NNPC), Mobil Producing Nigeria Limited (MPN), NSIA Agriculture Investment Company Limited (NAIC), OCP Africa SA and Gas Aggregation Company of Nigeria (GACN) took place on 2nd March 2021.
The execution ceremony which took place at the Mohamed VI Polytechnic University (UM6P) in Benguerir, Morocco was graced by key stakeholders in the Nigerian and Moroccan Oil and Gas sector. In attendance were His Excellency, Chief Timipre Sylva, Honourable Minister of State for Petroleum Resources; Mostafa Terrab, Chairman and CEO of OCP; Mele Kyari, GMD NNPC; Engr Yusuf Usman, COO Upstream, NNPC; His Excellency, Mr. Udom Emmanuel, Executive Governor of Akwa Ibom State; Mr. Uche Orji, Managing Director NSIA; Engr. Simbi Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board, amongst other notable dignitaries.
The objective of the Term Sheet is to outline the commercial principles for the long-term supply of gas by the Sellers (NNPC and MPN) to the Buyer (NAIC and OCP Africa SA) whose project is an Ammonia and Phosphate based fertilizer plant in Akwa Ibom State. This term Sheet is planned to be implemented in Q3 2021 through a Gas Sale and Aggregation Agreement (GSAA) which is to be executed by the parties.
The Managing Director and Chief Executive Officer of GACN; Mr. Olalekan Ogunleye stated in his speech that “GACN is resolutely committed to working collaboratively with all project participants to effectively facilitate the Gas Supply arrangement”.
In closing, the MD GACN charged all parties to work collectively to ensure that the GSAA is executed as planned and that the Multipurpose Industrial Platform project serves as a yardstick for future economic development cooperation between the Federal Republic of Nigeria and the Kingdom of Morocco.
The NSIA/OCP Multipurpose Industrial Platform project is a backward integration initiative, which builds on the successes of the Presidential Fertilizer Initiative (PFI) and other sovereign bilateral initiatives between the Federal Republic of Nigeria and the Kingdom of Morocco in terms of balance of trade.