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Skye Bank Finances Pan Ocean Gas Plant Project

By on January 8, 2013

Skye Bank is breaking new ground in the financing of indigenous oil and gas projects in the country. Its latest project being the financing of the Pan Ocean Oil Corporation’s Ovade-Ogharefe Gas Processing Plant.

The Ovade-Ogharefe Gas Processing Plant was designed as a Carbon Emission Reduction Project with the capacity of delivering 200million standard cubic feet per day of gas (mmscf/d) of dry gas to the domestic gas market for power generation and industrial development.

Pan Ocean is the operator of OML 98 which it holds a 40% equity interest in, whilst the NNPC holds 60% of the equity interest.

Deputy Managing Director, Skye Bank Plc, Mr. Timothy Oguntayo, said the bank’s participation in the deal is to support the Federal Government’s local content policy for the oil and gas industry.

He said the plant will, among other things, ensure zero routine flaring in all areas of its operation.

The gas plant earns carbon credits under the Clean Development Mechanism (CDM) of the United Nations’ Kyoto Protocol.

Pan Ocean  had initiated a CDM certification for its gas utilisation project as part of its contribution to improving Nigeria’s image as a green oriented country in line with the United Nation’s Kyoto protocol.

With the CDM, reductions in greenhouse gas emission from projects in developing countries are registered and monitored under the United Nations Frame work Convention on Climate change (UNFCC) and sold to developed countries that have limits for their emissions.