Penspen has been awarded a contract from Sirius Group to conduct an engineering study for the monetization of gas reserves from oil fields offshore Niger Delta, Penspen said in a news release.

A key element of this agreement, the company said, is the development of gas reserves of the OML 122 Field, located in the offshore Niger Delta region 40 km from the coastline of southern Nigeria.

The study is being conducted as part of Project Dawn, a three-year development project worth US $1.2billion that includes the construction of a pipeline network to deliver natural gas to the Escravos-Lagos Pipeline System (ELPS), which was designed and constructed under the supervision of Penspen more than two decades ago. Gas from Project Dawn will feed power plants and different industrial applications in Nigeria, according to the release.

Project Dawn is expected to introduce 250 MMscf/d of natural gas under the gas sale and purchase agreement (GSPA) between Sirius Oilfield Support Services Ltd. and Nigerian Gas Co. (NGC), a subsidiary of NNPC.

The project will include an evaluation of the OML-122 field development, subsea gas pipeline and onshore central processing facility. The study will seek to determine the extent of new pipeline and facilities required, and quantify the overall investment required for the project, the release said. In addition, plans include conducting workshops in Nigeria to cover the screening of options, as well as decision and risk analysis.