Delta’s contract sanctity driving investments, says UTM FLNG boss

The Group Managing Director/Chief Executive Officer of UTM FLNG Limited, Dr. Julius Rone, has commended the Delta State Government for upholding the sanctity of contracts, describing the development as a critical factor in driving and sustaining long-term private investment.

Speaking at the Delta State Economic and Investment Summit with the theme: ” Harnessing our strengths, Unlocking our Potentials”, Rone said the consistency demonstrated by the administration of Governor Sheriff Oborevwori in honouring agreements entered into by previous governments has strengthened investor confidence in the state.

He noted that while governments may change, investors place greater value on the certainty that legally executed agreements will be respected irrespective of who is in office.

He said, “What is important to us as investors is the sanctity of contracts .
The contract was signed in 2022 under the administration of Governor Ifeanyi Okowa, but when the current administration came in, every bit of that contract was respected.

“As an entrepreneur, what matters most is seeing that such contracts are honoured irrespective of who is managing the affairs of the state.”

The Entrepreneur described Delta as one of the few states that has consistently demonstrated commitment to protecting investors and creating a stable business environment.

According to him, the state’s confidence in the UTM Floating Liquefied Natural Gas (FLNG) project was evident when it acquired an eight per cent equity stake in the project in 2022 for N42 billion noting that “Today, that investment is worth over N200 billion,” he said.

He further disclosed that upon commencement of commercial operations in 2030, the headquarters of UTM FLNG would be located in Warri, Delta State, positioning the state to earn increased dividends from the landmark energy project.

“By the time we come on stream in 2030, Delta will host the headquarters of UTM FLNG in Warri, and the state will continue to receive more dividends from this project,” he added.

He praised Governor Oborevwori for sustaining policies that encourage investment, saying the administration had demonstrated discipline, continuity and commitment to the economic development of Delta State.

“Governor Sheriff Oborevwori has proven that you are a disciplined governor who believes in the development of the state and its people. That is why we are here to continuously support the state in whatever way we can. We want to thank you,”.

He stressed that policy consistency and respect for contractual obligations remain indispensable ingredients for attracting capital, particularly in large-scale infrastructure and energy investments that require long-term commitments.