Okpai Independent Power Project

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Nigerian Agip Oil Company Ltd (NAOC), a joint venture comprising of Nigerian National Petroleum Corporation (60 percent), Eni (20 percent) and ConocoPhillips (20 percent), implemented the Okpai independent power project (Okpai IPP). The project consisted of an integrated cycle 450 MW electric generation plant, made up of two gas turbines and one steam turbine. The Nigerian state electricity utility, National Electric Power Authority (NEPA), purchased the power from NAOC under a power purchase agreement that was signed in July 2001. NEPA in turn sold this power to 11 distribution companies in Nigeria. The 11 distribution companies were created in 2004 after unbundling the distribution arm of NEPA under a major reform initiative undertaken by the Nigerian government. The power station was built near the NAOC’s oil and gas production and treatment plant at Kwale. Okpai IPP was part of a comprehensive Gas Master Plan (GMP) that Eni had developed in collaboration with NNPC and Phillips, which aimed at gradually eliminating the flaring of natural gas associated with oil production and to put the natural gas to productive use. The total project cost approximately US$ 462 million and achieved financial close in 2002. Construction of Okpai IPP began in 2003. Okpai IPP was commissioned on April 1, 2005. None None