By the OGJ Online Staff
HOUSTON, Oct. 4 -- Phillips Petroleum Co. said its Nigerian subsidiary Phillips Oil Co. (Nigeria) Ltd., will invest $85 million for a 20% share of a $425 million 450 Mw independent power project to be built near Kwale, Nigeria, in Oil Mining Lease (OML) 60.
The power plant will be tied into the Onitsha substation 50 km from OML 60 and will help bring electricity to people in 14 of 36 Nigerian states. Nearly 60% of Nigerians don't have access to electricity.
Phillips' s coventurers in OML 60, Nigerian Agip Oil Co. and Nigerian National Petroleum Co., also will invest in the power project with 20% and 60% interests, respectively. Henry McGee, president, Phillips' Europe-Africa division, said the power project is part of Phillips's development strategy for Nigeria and will utilize 600 bcf of gas produced by the joint venture.
The Bartlesville, Okla., company said it will book 20 million boe of proved reserves this year as a result of the approval of this power project investment. The project also will help eliminate gas flaring by 2004, McGee said, ahead of all other oil companies operating in Nigeria.
The Kwale power plant is expected to start up in 2004 and has received significant tax and other incentives, Phillips said.
"We are serious about our investment in Nigeria and pleased to help Nigerian Pres. Olusegun Obasanjo in his endeavors to ensure that the people of Nigeria have access to the benefits that oil and gas exploration can bring," said McGee.
