The CEOs of the Nigerian National Petroleum Corporation (NNPC), Total and ENI are planned to meet ahead of schedule one month from now to choose the destiny of the $15 billion Brass Liquefied Natural Gas (LNG) project situated on Brass Island, Bayelsa State, according to news reports.
This is coming as instability keeps on rising over the destiny of the $547 million as of now plunked into the Olokola LNG project arranged on the bordertown in Ogun and Ondo States, taking after the withdrawal of the venture’s shareholders and the late choice by the NNPC to migrate its staff approved to the venture to Abuja.
It was learned that shareholders of Brass LNG who have contributed about $1 billion on early works, without marking a Final Investment Decision (FID), will meet in London between January 10 and 12, 2017 to take a choice on the multi-billion dollar extend, whose FID has been kept in cessation for 10 years.
An authority of one of the shareholders said that the Brass LNG extend stayed on course and faulted the postponement in marking the FID to the nonattendance of political will with respect to the Goodluck Jonathan administration and what he called the extended withdrawal of ConocoPhillips from the venture.
As per him, the shareholders – NNPC, ENI, Total and ConocoPhillips – were at the purpose of marking the FID before the American oil major hauled out of Nigeria.
A long investment was required from the period they made the declaration to the period they at last hauled out, in light of the fact that they were searching for financial specialists who will purchase their oilfields in Nigeria and their 17 for every penny stake in Brass LNG. When they discovered Oando, the organization could just purchase their oilfields instantly. Along these lines, their withdrawal was exceptionally extended and this influenced the Brass project.
The authority, in any case, said the Brass LNG extend stayed on course, including that LNG undertakings were reasonable.
The Minister of State for Petroleum, Dr. Ibe Kachikwu secured $80 billion financing from the Chinese and Indians and we are cheerful that Brass will profit by this subsidizing.
There has been a great deal of improvement in Brass. The management has reconstituted the group and changed ConocoPhillip’s model and presently utilizing the Nigeria LNG display.
NNPC has migrated its staff approved to Olokola LNG to Abuja, taking after the withdrawal of the considerable number of shareholders from the venture.
According to a source at NNPC, who affirmed the migration of its OKLNG staff to Abuja, the venture costs since origin added up to about $547 million.
As indicated by him, with the withdrawal of the shareholders and the movement of staff, there is instability over the destiny of the $547 million spent on early works.
Metal LNG and OKLNG were brought about by the administration of previous President Olusegun Obasanjo in 2005 to support gas supply to both residential and export markets.
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