By Lawal Dogara, Kaduna

Northern Nigeria Development Company (NNDC) has signed a Memorandum of Understanding (MoU) with the African Finance Corporation (AFC) with a view to developing a hydro-carbon potential for its two oil blocks namely, OPLs 809 and 810 in the Benue Trough.

Speaking shortly after the signing ceremony, the group managing director of NNDC, Alhaji Aliyu A. Alkali, said the MoU entailed among other things the generation of electricity for the OPL’s 809 and 810 by the year 2010.

According to him, the northern governors were committed towards ensuring the provision of steady and uninterrupted power supply in the region so as to resuscitate the ailing industries and the region’s moribund economy.

He disclosed that NNDC has so far paid over two million US Dollars as statutory fees and signature bonuses for the four oil blocks namely, OPL’s 722 and 733 located in Chad Basin and OPL’s 809 and 810 located in the Benue Trough.

The group managing director explained that since the involvement of NNDC into oil and gas project, a lot has been achieved, saying that so far the results were encouraging in both Chad Basin and Benue Trough.

According to him, "in Benue Trough alone the hydrocarbon phase encountered in the well was essentially a gas and condensates phase estimated to have minimum gas reserves of between 33 billion to 100 billion cubit feet".

Alhaji Alkali commended the Northern Governors’ Forum for its support and cooperation to the NNDC, which he said have led to the attainment of success recorded by the company.

In his speech, the executive director of African Finance Corporation, Mr. Solomon Asamoah, said the agreement would enable the northern states generate electricity through Benue Trough in order to enhance the economy of the region in particular and the country as a whole.

He said his organization would do its best to achieve the desired result.