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NCDMB, NNPC, Brass Fertilizer sign Shareholders Agreements on Methanol Project
Precious ADELOLA
ABUJA-THE Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian National Petroleum Corporation (NNPC), Brass Fertilizer and Petrochemical Company Limited and DSV Engineering on Tuesday signed two key agreements for the construction of 10,000 tonnes per day methanol plant and the 500 million standard cubic feet per day gas processing plant in Odeama, Brass, Bayelsa State.
The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote signed for the Board, while the Chief Operating Officer, Gas & Power, NNPC, Mr. Usman Yusuf and the Managing Director of BFPCL, Chief Ben Okoye signed for their companies respectively at the ceremony held at the Board’s liaison office in Abuja on Tuesday.
The first agreement was the Accession Agreement between BFPCL, DSV Engineering, NNPC and the NCDMB Capacity Development Intervention Company Limited by Guarantee. It confirms that NCDMB has subscribed to the terms and conditions contained in the company’s Share Subscription Agreement.
The second agreement was the Share Subscription Agreement between BFPCL, DSV Engineering and the NCDMB Capacity Development Intervention Company Limited by Guarantee. This agreement confirmed the allotment of 18 percent of the authorised share capital of the Brass Fertilizer and Petrochemical Company Limited to NCDMB.
In his remarks, the Executive Secretary of NCDMB highlighted the need for indigenous institutions and companies to initiate projects that would create in-country value and employment opportunities for young Nigerians. He insisted that the Nigerian oil and gas industry cannot continue to wait for only international operating oil and gas companies to introduce projects.
He maintained that creating job opportunities for young Nigerians was the best strategy to curtail restiveness and insecurity in the polity.
He hinted that the methanol project provides opportunities to add value in-country and further diversify the utilization of the nation’s gas resources.
He said the 10,000tonnes/day methanol plant will upon completion bring Nigeria onto the world map as one of the top-10 producers of methanol.
“The opportunities provided by this project in jobs creation, gas utilization, and local availability of methanol for primary and secondary users, are massive and we are excited to serve as a catalyst for the realization of the project,” he added.
Wabote also said that the project would create 15,000 jobs during the construction stage and additional 5000 jobs during the operations phase.
He indicated that Methanol can be used for different purpose and can also serve as a key chemical agent in pharmaceutical and agro-chemical industries.
The Executive Secretary commended the NNPC for its role in getting the project to the current stage, expressing hope that the partnership would help to drive the methanol plant to completion.
The Chief Operating Officer, Gas & Power, NNPC, Mr. Usman Yusuf expressed delight that the project was in sync with the President Muhammadu Buhari’s recent declaration of a Decade of Gas and would help to correct the current anomaly whereby 100 percent of the nation’s methanol needs are currently imported. He maintained that that gas was becoming increasingly important to Nigeria’s sustainability and would also play a key role in energy transition. He added that gas is key to food processing and can lead the nation to food sufficiency, industrialization, increase in Gross Domestic Product and power sufficiency.
He added that the two Methanol projects would help Nigeria save foreign exchange and significantly enhancing local production.
The NNPC chieftain congratulated the NCDMB for supporting the methanol projects, which would create a gas hub, petrochemical industry fertilizer plants and condensate refinery.
He also expressed delight that the funding for the critical project was being sourced in-country.
The Managing Director of BFPCL, Chief Ben Okoye stated that methanol can be used to produce 67 items that are used in households everyday. He stated that the company had acquired 600 hectares of land and aspires to attract other entities to the Brass Free Zone. He said the project would become the biggest methanol plant in sub-Saharan Africa.
The NCDMB, NNPC and DSV Engineering on Friday had in January 2021 signed the Final Investment Decision (FID) for the construction of 10,000 tonnes/day methanol production plant by the Brass Fertiliser and Petrochemical Company Ltd (BFPCL), committing equity investment of US$670m.
Savannah Energy has shared a trading update on its Nigerian operations and other markets in Africa, including up-to-date cash collections in its Nigerian business.
According to the update, made available on Thursday in Lagos, its gross production in Nigeria averaged 23.1 Kboepd for FY 2024, broadly in line with the prior year’s 23.6 Kboepd, of which 88% was gas (FY 2023: 91%).
On the update, CEO of Savannah Energy, Andrew Knott, said, “I am pleased to provide a FY trading update which demonstrates the continued progress we have made in 2024, a year which saw the highest level of cash collections ever recorded by our Nigerian business. 2025 is expected to be an exciting year for our Company: we have a large planned operational programme in Nigeria which is anticipated to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business.
“Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors.”
The update It also shows that it generated a Total Income of US$393.6 million in 2024, compared to FY 2023’s US$289.8 million. This consists of Total Revenues of US$258.7 million and Other operating income of US$134.9 million.
The report also shows that Savannah’s FY 2024 Total Revenues were ahead of the previously issued financial guidance of greater than US$245 million, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses at ‘up to US$75 million’. The company expects its FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to US$50 million’) due to the phasing of spend.
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According to the update, Savannah’s cash collections in 2024 amounted to US$248.5 million, a slight increase from the US$206 million it received in 2023. The report further shows that its cash balances as at 31 December 2024 stood at US$32.6 million, compared to the 31 December 2023 figure of US$107.0 million.
The report shows that the company’s midstream subsidiary, Accugas Limited, had as at 31 December 2024 drawn down on its NGN332 billion of the NGN Transitional Facility, with the resulting funds being converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million.
The report also provided new updates on Accugas’ US$45 million Uquo Central Processing Facility (“Uquo CPF”) compression project in Nigeria, noting that its commissioning which will enable the expansion of gas production in the medium term is well underway.
The report highlighted the progress being made in the procurement process of long lead equipment in Nigeria for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place (“GIIP”) of 154 Bscf (25.7 MMboe) of incremental gas resources.
The update shows that progress is also being made in the planned Savannah acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field (“Stubb Creek”), with regulatory approval and completion being targeted in Q1 2025. Following the completion of the acquisition, Savannah intends to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.
In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger, while it continues to push for a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as previously announced on 20 December 2024.
On the renewable energy front, the update shows that Savannah has up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. A firm believer in Africa’s transition to renewable energy, Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by the end of 2026.
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
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“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
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