Connect with us

Gas

Shock grips NLNG as Fed House of Rep passes controversial amendment bill 

Published

on

Modupe ASUDO
SHOCK and bewilderment has continued to grip the management of the Nigeria Liquefied Natural Gas company following the passage by the Federal House of Representatives of a bill on Tuesday to amend Nigeria Liquefied Natural Gas, NLNG’s (Fiscal Incentives, Guarantees and Assurances), a situation which has sent shock waves down the spine of the company.
The House of Representatives through the passage of the bill seeks to subject the company to three percent Niger Delta Development Commission, NDDC levy.

NLNG Vessel

The company’s current state of shock and surprise is due to the recent assurances given on behalf of the federal government by the Minister of state for petroleum resources Dr. Ibe Kachikwu to the international community and prospective investors in the country during the just concluded Offshore Technology Conference (OTC) in Houston Texas, USA. The minister had told them that the federal government is solidly behind the foremost gas company and would do everything to see that the status quo is maintained.

The NDDC levy is said to target gas producers with the aim of reducing gas flare in the country. However, NLNG said it’s operations involves purchase of gas from gas producers that have paid the said levy.
The passage of the bill came one week after the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu gave foreign investors assurance at the just concluded 2017 Offshore Technology Conference, OTC that they FID for NLNG’s Train 7 and 8 will be ready in 18 months.
 In a swift reaction said the passage of the bill is a direct attack on the company, and the present government’s ease of doing business agenda and determination to attract direct foreign investment to Nigeria.
“We understand that this bill will be progressed to the Senate. We think that this is a huge error to pass law as it is a direct collusion with the Federal Government’s drive to attract Foreign Direct Investment (FDI),” he said.
Stating the reasons why Bill is not in the interest of Nigeria Dr. Kudo said the fact that the company is being targeted by this amendment while fellow gas purchasers and processors in other businesses such as fertilizer, petrochemical, and electricity are left untouched, gives the world the impression that Nigeria would rather drag down than support its best.
“NLNG succeeded largely due to the provisions of the NLNG Act, which gave investors the confidence to invest in the country. But with an amendment, that confidence will be eroded and jeopardize critical ongoing investments for the continued survival of the company; critical among which is the $1 billion needed annually for the next three years to guarantee the current operation of six existing Trains.
“After 35 years of unsuccessful effort, NLNG could only be incorporated upon the enactment of the NLNG Act which then enabled the establishment of the company. To thus amend the basis of the investment in Nigeria will obviously breach the promises of Government to its co-investors. This will badly damage the reputation of the country, its credit rating, and ability to attract or even retain future investments,” he said.
Kudo added that any amendment will also mean an immediate potential loss of foreign investment of US$25 billion in respect of Trains 7 and 8 investments (US$15 billion by the gas producing and supplying companies and US$10 billion for construction of the project).
“The expected 18, 000 construction jobs for Trains 7 and 8 will also be lost if the Act is amended. This is at a time when the Niger Delta, and the country at large, is in dire need of jobs. Needless to mention the impact of such a huge number of jobs on the peace of the Niger Delta region and the economy of the country.
“NLNG purchases gas from upstream suppliers, who already pay 3% NDDC levy, which would have otherwise been flared. The company has almost single-handedly caused the reduction of gas flaring from about 65% in 1999 to about 20% currently. With the required investment, NLNG is capable of reducing that figure even further upon the completion of the Trains 7 and 8 Project.
“Any Amendment will however ultimately result in a return to high flaring if NLNG ceases to exist with attendant negative impact on the Niger Delta environment.
NLNG’s General Manager, External Relations Division Dr. Kudo Eresia-Eke maintained that the amendment will contain the company’s development initiative in the Niger Delta.
 
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Gas

Platform Petroleum targets a billion-dollar investment

Published

on

Platform Petroleum

Announces ambitious expansion plans

 

Platform Petroleum says the company is targeting a billion-dollar investment as it announces an ambitious strategic plan to bring 3 marginal fields into production by 2025, with a target of 10,000 barrels of oil and at least 50 billion standard cubic feet of gas per day.

Speaking on the sidelines of the 2024 Offshore Technology Conference (OTC) in Houston, USA, Chief Dumo Lulu-Briggs, Chairman of Platform Petroleum said that the company has scheduled a roadshow in London this June 2024 to raise extra funding to finance their ambitious expansion plans.

“The upcoming roadshow aims to attract equity partners and prepare for future opportunities, targeting a billion-dollar investment. We are seeking partners ready to invest in Nigeria’s oil and gas potential.

Our goal is to showcase the country’s vast opportunities and its potential to international investors” Lulu-Briggs said.
Platform Petroleum’s roadshow in London will highlight the company’s efficient production, upgraded flow stations, increased capacity, and achievements in nearly zero emissions.

With about one percent gas flare currently, Platform aims for zero gas flares by the last quarter.

“Nigeria is a vast market, and Platform Petroleum is thinking big. With the government’s ambitious plans, such as the Lagos-Calabar coastal line, Platform is poised for growth; pushing itself to the next level, building on a strong foundation and following Seplat’s successful precedent”, Lulu-Briggs said.

Despite being a small company, he emphasized that Platform Petroleum has demonstrated significant success and efficiency, showcasing that smaller oil and gas entities can indeed achieve remarkable feats adding that he believes that the company deserves recognition and more assets.

“Platform Petroleum is ambitious, aspiring to become a tier-1 company akin to international oil companies (IOCs) or a tier-2 company like Seplat. Interestingly, Seplat originated from Maurel & Prom, Shebah Petroleum, and Platform Petroleum, and today stands as a major player in the industry.

This history underlines Platform’s potential for substantial growth”, Lulu-Briggs said.
Furthermore, the Platform Petroleum Chairman said that the Offshore Technology Conference (OTC) is a crucial event for promoting Nigeria’s significant market potential.

“Partnering with the Petroleum Technology Association of Nigeria (PETAN) at OTC is key to attracting investment. The current proactive government understands the necessity for economic growth, and Platform is prepared to leverage every opportunity in the oil and gas industry to contribute to this expansion”, he concluded.

Continue Reading

Breaking News

NNPC JV Unveils New Crude Oil Grade ‘Nembe’, Commences Exports With 1,900 Barrels

Published

on

Precious ADELOLA

The NNPC/Aiteo Joint venture has announced the introduction of Nembe Crude Oil Grade, a new crude oil grade into the international crude oil market.

 

The announcement of the Nembe Crude Oil Blend, produced by Aiteo, the Operator of the NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV), was made at the ongoing Argus European Crude Conference in London, on Tuesday.

 

OML 29, an asset located onshore Nigeria, is operated by Aiteo Eastern Exploration & Production Ltd, Africa’s leading indigenous hydrocarbon producer, following a historic acquisition from Shell in 2014.

 

NNPCL Boss, Engr. Mele Kyari

The Nembe Crude was previously blended with the popular Bonny Light grade and exported via the Bonny Oil & Gas Terminal.

The unique selling point of the Nembe Crude Oil grade with an API gravity was highlighted by both the Aiteo E & P and NNPC Limited Leadership at the Argus Conference in London.

The Nembe Crude Oil grade also has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.

Two cargoes of 950,000 barrels each of the Nembe Crude Oil grade have since been exported to France and the Netherlands. With its attractive Assay of API 29 and low sulphur content, the Nembe Crude Oil grade commands a premium to the global Brent benchmark.

 

With the NNPC-Aiteo OML 29 JV back on-stream, Nigeria now boasts of an additional crude oil export of 2 Cargoes at 950,000 barrels each per month and 1.2 Bcf of export gas monthly.

 

This remarkable achievement signals the commencement of activities at Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), which was licensed in line with the extant laws and Crude Oil Terminal establishment regulations.

 

The terminal was conceived as a Floating Storage and Offloading Vessel (FSO) with a storage capacity of two (2) Million Barrels and the ability to offload crude oil to any export tanker from AFRAMAX to Very Large Crude Carriers (VLCC).

 

It has a loading capacity of 25,000 barrels per hour and will be exporting over 3.6 million barrels of Crude oil monthly at full scale of operation.

 

Currently, hydrocarbon production from OML 29, which was hitherto constrained due to evacuation challenges owing to the security issues around the Nembe Creek Trunk Line (NCTL) corridor, has now been resolved through a collaborative and creative approach that led to the innovation of the Alternative Crude Oil Evacuation Solution.

 

The Argus European Crude Conference 2023 in London is a gathering of energy majors, refiners, NOCs, traders, financial institutions, and other representatives from across the global oil markets. The event also provides a critical opportunity for business leaders to connect, discuss, share and learn from one another.

Continue Reading

Business

NNPCL, NCDMB, Oil Majors Agree Improved Efficiencies

Published

on

Modupe Asudo

Major players in the oil and gas sector in Nigeria led by the Nigerian National Petroleum Company Limited (NNPCL) have covenanted to optimise operations by reducing contracting cycle to not more than 180 days.

A statement issued by the company disclosed that the Memorandum of Understanding (MoU) to this effect was endorced on Monday in Abuja at the company’s head office.

Other parties to the the contract include, the Nigerian Content Development and Monitoring Board, (NCDMB) and international oil companies.

Biztellers reports that an optimised contracting cycle was expected to improve the ease of doing business, reduce cost and drive efficiency, which would eventually translate to production growth, increased revenues, and ultimately improved profitability.

In addition, the MoU was expected to contribute significantly to the double-digit economic growth rate agenda of the Federal Government and generate value for all stakeholders, including investors, companies, host communities and Nigeria.

Notable elements in the framework of the MoU, going by the statement, included a reduction of the contracting cycle for open competitive tender, selective tender, and single sourcing tender to 180, 178, and 128 working days respectively.

This was in contrast with the current best effort performance of 327, 333, and 185 working days respectively.

According to Group Chief Executive Officer, NNPCL, Mele Kyari, signing the agreement portends exciting times for Nigeria’s oil and gas industry, in addition to standing as a bold testimony that the company was plunging into the future of hope, productivity and success.

Kyari, represented at the occasion by Executive Vice President, Upstream, NNPCL, Oritsemeyiwa Eyesan, pointed out that with oil and gas as the bedrock of Nigeria’s economy, there was need to get the contracting process in the Industry right so as to get the economy back on track.

In his remarks, Executive Secretary, NCDMB, Simbi Wabote, described the MoU as a way forward and a critical step towards enhancing the nation’s crude oil production.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.