Polaris Bank sees huge potential in Pan Ocean’s oil, gas projects

Polaris Bank Limited has identified Pan Ocean Oil Corporation’s OML-147 flow station at Owa- Alidinma and the Ovade-Ogharefe Gas Processing/LPG Propane Plant II, as laudable projects capable of generating significant cash flows.

The Group Managing Director of Polaris Bank Limited, Mr. Adetokunbo Abiru, said this when he visited the site of the projects in Delta State.The multimillion-dollar projects which are slated for commissioning in the next few months are set to be game changers in the oil and gas industry, as they will contribute immensely to national electricity supply and crude oil output when fully operational, according to Pan Ocean.

Under the leadership of Pan Ocean Oil Corporation’s Chairman/ Managing Director, Dr. Festus Fadeyi, OPL 275 (Oil Prospecting Lease 275) was converted to OL 147 (Oil Mining Lease 147) in 2014 to enable drilling for first oil and subsequent production. When full production commences, OML 147 is expected to attain peak output of 11,000 barrels of crude oil and 90 million standard cubic feet of gas per day.

On the other hand, the Ovade-Ogharefe Gas Processing Plant/LPG Propane Plant II is expected to boost electricity supply in the country as it will serve as a close source of lean gas to the NIPP Power Plant sited at Ihobbor, Edo State. The facility will also supply LPG (Liquefied Petroleum Gas) to households across the country.

Abiru, accompanied by the Group Head Corporate Banking, Polaris Bank, Mrs. Tutu Alu, was quoted in statement to have said: “A lot of work and investment has gone into these projects, based on what I have seen. However, our priority at the moment is the commissioning and the cash flow that will follow.”

Phase II of the Ovade-Ogharefe Gas Processing Plant/LPG Propane Plant is designed to expand gas processing capacity at the plant to 200 million standard cubic feet per day. It incorporates a cryogenic process to deliver bone-dry gas streams, LPG and other natural gas liquid streams for domestic and international use.

According to the Base Operations Manager, Monday Ikhureigbe: “29 storage tanks are already in place at this facility, they were built to store approximately 194,400 gallons of Propane and 244,640 gallons of Propane/Butane mix (LPG) from an in-feed gas of 200MMSCF/D.”
Also speaking during the tour, Chief Finance Officer, Pan Ocean, Seyi Oladapo, disclosed that: “The gas plant will help Nigeria as a country further drive its vision of higher LPG penetration, which is an important component of the World Bank’s Sustainable Development Goals.”