Energy
Floating LNG Project: UTM Solicits NCDMB’s Equity Investment, Approvals
UTM Offshore Limited, promoters of Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility has requested the Nigerian Content Development and Monitoring Board (NCDMB) to invest equity in the project and to accelerate key approvals that would fast-track the project’s development.
The Corporate Communication Department of the NCDMB conveyed this in a statement.
According to the statement, the request was made on Wednesday at the Nigerian Content Tower in Yenagoa, Bayelsa State when the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe hosted the management of UTM Offshore Limited led by the Group Managing Director, Mr. Julius Rone.
The target completion date of the FLNG project is 2028 and it hopes to contribute about 450,000 tonnes of liquified petroleum gas (LPG), otherwise known as cooking gas per annum to the domestic market.
“This,” the statement had it would “assuage Nigeria’s average demand of about 1.5 million tonnes of LPG per annum and reduce the dependence on the importation of LPG.”
According to the GMD the UTM is a 100 percent indigenous company, and the floating LNG project will optimise Nigeria’s stranded gas offshore, enhance energy transition, promote domestic consumption of cooking gas, and aid technology transfer, among other benefits.
He invited the NCDMB to take equity in the project, hinting that the Nigerian National Petroleum Company Limited (NNPCL) and the Delta State Government were already partners on the project given its importance to Nigeria’s energy security.
The GMD described the FLNG as another confirmation of the capability of Nigerians to develop projects of world-class standards.
He announced that roadshows were being planned for Uyo and Abuja in April 2024, to showcase the Nigerian Content opportunities in the project and to engender increased participation of Nigerian oil and gas services companies.
The UTM Offshore boss thanked the Board’s Management for facilitating the project’s progress, just as he solicited greater synergy with his company on all aspects of Nigerian Content implementation and overall development of the project.
Providing further details, the Technical Manager of the FLNG, Engr. George Amara stated that the project’s target total production is 2.72 million tonnes per annum (MTPA), with LNG accounting for 1.81 MTPA, LPG taking up 0.45 MTPA, and condensate making up 0.25 MTPA.
He commended NCDMB for approving key stages of the development, including Pre-Front-End Engineering Design (Pre-FEED), the Pre-FEED Nigerian Content Development (NCD) Plan, and the Front-End-Engineering Design (FEED) NCD Plan.
Other accomplishments include the Engineering Procurement Construction NCD Plan, the training of three indigenous engineers for Pre-FEED Nigerian Content Development, and the engagement of 13 Nigerian engineers for the FEED NCD scope as well the engagement of Nigerian engineering firms for different aspects of the project.
He affirmed that UTM FLNG would utilise Nigerian fabrication yards for in-country activities, adding that an inspection of prospective yards in Lagos and Calabar had been completed.
He hinted that the project was going into the Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) stage, which is very critical, hence the need to update the NCDMB and request speedy approval for the EPC NCD Plan.
In his response, Engr. Ogbe, expressed delight with the progress recorded on the UTM FLNG and assured that the Board will provide all the required approvals. He urged the company’s Management to “be proactive. Let us know whatever challenge or obstacles that you encounter” assuring that the Board would do all that is within its powers to assist the company and others showing resourcefulness.
On the request for equity investment, the ES promised to consider the application with the Board’s management and to escalate the proposal to the Board’s Governing Council for further consideration.
He also promised that the Board would participate in the Nigerian Content roadshow, to explore opportunities for other Nigerian firms on the FLNG project.
The Shell Nigeria Exploration and Production Company (SNEPCo) has been named Major Oil Company of the Year for last year by a Nigerian publication, Energy Times.
Biztellers reports that this is in recognition of the company’s contributions to deep-water oil and gas development and the industry generally.
Energy Times also awarded the title of Amazon of Nigeria’s Oil Sector for 2024 to Elohor Aiboni, a former Managing Director of SNEPCo now on international assignment in Brunei.
The awards were presented to SNEPCo’s Senior Operations Manager, Bolanle Odunayo-Ojo, who represented the Managing Director, Ronald Adams at a ceremony attended by key stakeholders in the oil and gas sector.
ALSO READ: BREAKING: Again, Dangote Cuts Petrol Price To N835 per Litre
“We are honored to receive the recognitions for the company and our former Managing Director as they underscore our dedication to excellence in the upstream sector,” Bolanle stated. “The modest achievements are result from teamwork and support by our partners, particularly the Nigerian National Petroleum Company Limited and regulatory agencies. The awards encourage us to continue to work together to power progress and innovation in Nigeria’s energy landscape.”
The SNEPCo has been a pioneer in Nigeria’s deep-water oil and gas production since it began production from Bonga in 2005, Nigeria’s first deep-water well. Gas from Bonga is also piped to Nigeria Liquefied Natural Gas Company Limited at Bonny Island. SNEPCo’s operations have led to significant discoveries, including Bonga Southwest in 2001 and Bonga Northwest, which began production on August 5, 2014.
In its award, the Board of Directors of Energy Times pointed to the continuing success of Bonga, notably production of the 1 billionth barrel of oil in February 2023 and the recent Final Investment Decision on the $5 billion Bonga North project.
The award on Aiboni’s highlights a career that has seen her serve in various business and leadership roles within and outside Nigeria. She was appointed Managing Director of SNEPCo in 2021 and led initiatives that deepened operational efficiency, local content development and social investment projects across the six geopolitical zones in the country.
Shell Nigeria Exploration and Production Company Ltd (SNEPCo,) one of the sponsors of the Oloibiri Lecture Series and Energy Forum (OLEF) has commended it as a platform for driving change in Nigeria’s energy sector through the discussions that centre on business performance, cost discipline and process simplification.
“This event is special to the Shell brand, not only because of the nostalgia of Oloibiri but the quality of discourse it has enabled in our sector over the years,” SNEPCO Managing Director Ronald Adams said in a goodwill speech delivered by General Manager, Wells and Geosciences Operations Joe Mordi. He said: “We are grateful to the Society of Petroleum Engineers and our host the Petroleum Technology Development Fund (PTDF) for another successful outing.”
Organised by the Society of Petroleum Engineers (SPE) Nigeria Council, the Oloibiri Lecture Series and Energy Forum began in 1991, in commemoration of the country’s first commercial oil discovery by Shell at Oloibiri, Bayelsa State, in 1956. Ronald said recent developments in the Upstream and Downstream sectors of the energy industry, including the $5-billion final investment decision by Shell in the Bonga North Deepwater project echoed the sentiments around the first oil discovery.
ALSO READ: No Safety Guarantee For Unscheduled Visitors To Benue – Gov Alia
He noted that, “These strides come with a commitment to excellence required of us – for stakeholders, colleagues, our country and indeed, future generations. The theme for this year ‘Driving energy sustainability through technology, policy and supply chain excellence’ reflects this commitment. The future is bright, and we have the opportunity to co-create it.”
In line with its continuous improvement culture, the Nigeria LNG Limited (NLNG) will be working closely with its stakeholders to improve operational efficiency in its domestic Liquefied Petroleum Gas (DLPG) supply in Nigeria.
According to a statement from its General Manager, External Relations and Sustainable Development, Sophia Horsfall, this was highlighted at an engagement session with stakeholders in Lagos.
It was gathered that the NLNG plans to enhance engagement and improve operational efficiency of its LPG supply through digitalisation of some of its processes which include a new platform designed to streamline regulatory processes, optimise risk management, and enhance the buyer experience. The platform will feature IT-supported relationship management, automated issue resolution, centralised real-time payments, and improved case management systems, ensuring a seamless supply process despite market shifts and external pressures.
ALSO READ: Ifon-Ilobu Crisis: Adeleke Assures Of Quick Restoration Of Peace
Manager, Commercial Contract Management, NLNG, Tolulope Longe, reiterated that the planned improvements will enable and consolidate NLNG’s resolve to delivering 100% of its LPG supply to the Nigerian market.
She said a strategic roadmap was in play to ensure the achievement of NLNG’s longstanding goals of LPG being accessible and available in the country, aligning with its vision of being a globally competitive energy company, improving lives sustainably. She also harped on the significance of these improvement initiatives and the Company’s push for LPG utilisation as a clean energy source alternative to kerosene and other fossil fuels
Longe noted that the Company remained focused on growth and sustainability of the LPG market by continuously enhancing its supply processes in collaboration with offtakers. She stressed NLNG’s commitment to collaborating with stakeholders to maintain pricing stability and long-term market viability. While acknowledging industry concerns, she noted the importance of operational efficiency in meeting market demands.
NLNG aims to strengthen stakeholder engagement and improve market efficiency in the LPG sector through enhanced customer interactions, minimised schedule disruptions, timely confirmations and deliveries, and prioritisation of customers with demonstrable capacity. As it adapts to market realities, NLNG remains committed to driving sustainability and delivering lasting value to Nigerians.
Corps Members Safe In Benue, Gov Alia Assures As Orientation Kicks Off
JUST IN: Reps Committee Finally Meets Rivers Sole Administrator After Delays
World Bank Appoints Aliko Dangote To Elite Group
Ministry Appoints New Director For DUFUTH, Uburu
CVFF- House of Reps Backs Marine & Blue Economy Ministry
