The federal government has approved the Power Purchase Agreement (PPA) negotiated by the Nigerian Bulk Electricity Trading Plc (NBET) with the new investors for the Qua Iboe Power Plant to be located in Akwa Ibom State, THISDAY reports.
Mobil Producing Nigeria Limited (MPN), a subsidiary of ExxonMobil, had earlier stated that it had reached commercial terms with Qua Iboe Power Plant Limited (QIPPL) for the transfer of ownership of the power project and the supply of gas from the Nigerian National Petroleum Corporation (NNPC)/MPN joint venture offshore facilities to the plant.
The government also approved a Put/Call Option Agreement (PCOA), which NBET and the Ministry of Finance agreed with the project’s investors – the Qua Iboe Power Plant Limited (QIPP). QIPP is jointly owned by the NNPC, Black Rhino Group and Dangote Group.
NBET and QIPP also disclosed at the PPA signing ceremony in Abuja that work on the project which is expected to cost about $1.1 billion, would commence as soon as a financial closure is achieved within the second quarter of 2018.
Source: Energy Mix Report