Millennium Oil, Saltspring strike carbon credit deal
Indigenous oil and gas producers, Millennium Oil and Gas Company Limited (MOGOL) has entered a collaborative arrangement with American energy solutions provider, Saltspring Energy LLC, to decarbonize operations at the Oza oilfield.
The agreement seeks to harness flare gas at the Oza marginal field in Abia State for production of electricity.
Millennium Oil is a Nigerian based exploration and production company which operates the Oza marginal oilfield hosted in the Oil Mining Lease OML 11.
Saltspring Energy LLC, based in Houston, Texas, United States, is a global energy solutions provider specializing in carbon management.
In a statement jointly issued in Lagos and Houston, the companies declared that they have reached a memorandum of understanding (MOU) to collaborate on a groundbreaking initiative to cut carbon emissions by converting flare gas to power production.
Executive Chairman of MOGOL, Mrs Cecelia Umoren, declares: “This partnership represents a significant step forward in addressing one of the major environmental challenges in the oil and gas sector—gas flaring.”
“By collaborating with SaltSpring, we are not only reducing emissions but also creating new revenue opportunities and positioning ourselves at the forefront of the energy transition,” she explained.
Under this partnership, the two companies would develop and implement a carbon credit mechanism
based on the existing Gas Sale and Purchase Agreement (GSPA) for the Oza Field, curb gas flaring and associated environmental challenges, and generate carbon credits under established global standards.
The earned carbon credits could now be sold on global platforms like Verra, Gold
Standard, and the European Union Emissions Trading System (EU ETS).
In delivering on the objectives of the partnership, SaltSpring commits to assist MOGCL in creating a verified carbon
credit mechanism that aligns with global sustainability goals and carbon-neutral
certification standards.
The American company would also deploy it’s expertise in assisting MOGCL trade
the generated carbon credits and open new revenue streams while
strengthening its sustainability profile.
SaltSpring is to also guide MOGCL through the certification process, ensuring that all carbon credits adhere to the standards set by
recognized certifying bodies such as Verra and Gold Standard.
The MOU holds that the profits from the sale of carbon credits would be shared equally between
MOGCL and SaltSpring Energy, creating a long-term partnership that benefits both parties while contributing to global emission reduction efforts.
