The Minister of State for Petroleum Resources, Chief Timpre Sylva, has tasked the Nigerian Liquefied Natural Gas Limited (NLNG) to play a pivotal role in the domestic gas expansion project. Sylva, who made this known during the inauguration of the NLNG Corporate headquarters in Port Harcourt, Rivers State, stated that the Federal Government, Rivers State and host Communities would benefit from the development.
Group Managing Director of NNPC, Malam Mele Kyari, represented by the Chief Financial Officer, Umar Ajiya, in a goodwill message, said that the event was a demonstration of commitment to excellence.
He said the Corporation was prepared to partner with other stakeholders to expand the NLNG business from Train 7, 8,9 and 10. Also speaking, the Managing Director of the NLNG, Engr. Tony Attah, described the ceremony as an actualisation of commitment to Rivers State and to Nigerians as a successful business model that is poised to delivering value.
Also in the week, the NNPC and its Production Sharing Contract (PSC) partners – Shell Nigeria Exploration and Production Company (SNEPCo), Total Exploration and Production Nigeria Limited (TEPNG), Esso Exploration and Production Nigeria Limited (EEPNL) and Nigerian Agip Exploration (NAE) signed agreements to renew Oil Mining Lease (OML) 118 for another 20 years. The five agreements signed include, Dispute Settlement Agreement, Settlement Agreement, Historical Gas Agreement, Escrow Agreement and Renewed PSC Agreement.
NNPC GMD said that over 10billion dollars of investment would be unlocked as a result of the agreements. Kyari said the agreement also signaled the end of the long-standing disputes over the interpretation of the fiscal terms of the Production Sharing Contracts (PSC) and the emplacement of a clear and fair framework for the development of the huge deep-water assets in Nigeria. He disclosed that the deal would yield over 780 million dollars in immediate revenues to the Federal Government while it would also free the parties from over 9 billion dollars in contingent liabilities. “Ultimately, these agreements will engender growth in our country where investment will come in for other assets, not just in the deep-water, but even for new investors. It is an opportunity for them to see that this country is ready for business,” Kyari said. He thanked President Muhammadu Buhari, the Minister of State for Petroleum Resources, Chief Timpre Sylva, and the NNPC Board of Directors for enabling the Corporation to achieve this laudable landmark. The Chief Operating Officer, Upstream, Mr Adokiye Tombomieye, also spoke on the agreements, noting that it would benefit the country in many ways. The Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Mr Bala Wunti and the Group General Manager, Corporate Planning and Strategy of the Corporation, Mrs Oritsemeyiwa Eyesan, who were all part of the resolution of the protracted dispute said the negotiations with the Partner contractors would further boost the nation’s production outlook.
Also speaking at the event, the Country Chair of Shell Companies in Nigeria, Mr Osagie Osunbor, said the OML 118 renewal agreement would remain a watershed in the history of deep-water investments in Nigeria, assuring that the giant stride would further bolster investor confidence in the country. Speaking in a similar vein, the Managing Director of SNEPCo, Mr Bayo Ojulari, noted that the agreements marked the end of a 12-year dispute that had marred business relationship and affected trust and investment.“Today, we have signed agreements that define the future of deep-water for Nigeria. This is the first deep-water block that was developed in Nigeria and it is also the first one that we are resolving all the disputes that will lay the foundation for the resolution of other PSCs,” Ojulari said. On their parts, the Managing Directors of Total, Mike Sangster, Exxonmobil, Richard Laing and NAOC, Roberto Danielle, all applauded Kyari, for the steps taken in resolving the disputes.
Still in the week under review, the GMD, NNPC Malam Mele Kyari, expressed the readiness of the Corporation to partner with other stakeholders to attract more investors into the upstream, midstream and downstream sectors of the petroleum industry.