Daewoo wins $250 million contract for Nigeria gas facility

ABUJA: South Korea's Daewoo Engineering & Construction Co Ltd announced on Sunday that it has secured a $250 million order from Nigeria to build a gas processing facility in the oil-rich African country.

The contract for construction of the facility was awarded to Daewoo by global oil giant Shell Petroleum Development Co (SPDC). A statement issued here by the company said the project has an estimated completion deadline of 37 months.

The gas processing facility is being set up under a joint Venture in which NNPC holds a 55 percent stake, Shell 30 per cent, EPNL 10 percent and Agip 5 percent.

Daewoo will be involved with engineering, procurement to construction work under the project.

The order was placed by Royal Dutch Shell's Nigerian venture, Shell Petroleum Development Co, as part of the Nigerian government's Domestic Gas Master Plan.

The Gas Master Plan formulated in 2009 envisages augmented production and proficient utilisation of the country's gas resources.

Management of gas has been a major hindrance to Nigeria's objective of attaining stable power supply, even though the country has the world's seventh largest gas reserves of about 187 trillion cubic feet.

Nigeria is the biggest producer of oil in Africa, with an average output of 2.5 million barrels per day.