Connect with us

News

FG’s Inaction Threatens $37bn LNG Projects

Published

on

The Federal Government has been accused of undermining the take-off of the $12 billion Nigeria LNG’s Train 7, $10 billion Olokola LNG and the $15 billion Brass LNG projects.

A business intelligent firm, Oxford Business Group, had in a recent report estimated the total cost of the three LNG projects at $37 billion, and experts had expressed worry that continuous political interference from the Federal Government would further jeopardise these projects.

Though the $12 billion NLNG Train 7 project is considered as the most economical of all the three LNG investments, sources identified government interest in Brass NLNG located in Bayelsa State as the factor delaying the entire $37 billion LNG projects.

The Federal Government, through the Nigerian National Petroleum Corporation, owns 49 per cent each in NLNG and Brass LNG, and experts have said the President Goodluck Jonathan-administration might be more disposed to having Brass LNG take off before NLNG’s seventh train.

The Chief Executive Officer/Managing Director, NLNG, Mr. Babs Omotowa, had recently said $10 billion had been lost to the delay in reaching a final investment decision for the train seven project.

When completed, he said the seventh train would enable the company to add some eight million metric tonnes to its current production capacity and increase annual output to 30 million metric tonnes.

He said, “The Train 7 is potentially capable of mopping up and exporting some more of the currently flared gas, and yielding an estimated $2.5 billion in revenues.

“On balance, it is clear to us at NLNG that Train 7 is an enterprise which all shareholders and stakeholders should support and pursue with vigour, for the simple reason that its outcome will be good for Nigeria and for our business,” he said.

The NLNG boss, however, did not give specific details as to when the FID for the seventh NLNG train would be taken.

NLNG is jointly owned by the Nigerian National Petroleum Corporation (49 per cent), Shell (25.6 per cent), Total LNG Nigeria Ltd (15 per cent) and Eni (10.4 per cent).

Backed by NNPC (49 per cent), Agip/ENI (17 per cent), Total (17 per cent) and ConocoPhillips (17 per cent), the $15 billion Brass LNG facility was planned to consist two trains with a capacity of 5.5m tonnes per year (with an additional two-train option).

The FID on the Brass LNG project suffered major setbacks when ConocoPhillips, in 2013, announced the intention to divest its Nigerian assets.

“As a result, Brass LNG is now seeking third-party investors to take on the remaining 17 per cent stake” OBG said.

The source said, “With the exit of ConocoPhillips from the Brass LNG project, it has been challenging finding who will replace ConocoPhillips and take over its shareholding. The shareholding of ConocoPhillips has been marketed globally and no company has shown an interest.”

Before ConocoPhillips’ exit, the Chairman, Board of Brass Liquefied Natural Gas, Dr. Jackson Gaius-Obaseki, had expressed the hope that the project would take off on or before the end of the first quarter of 2013.

It was, however, not to be as the exit of ConocoPhillips created a vacuum that must be filled before the project could take off.

The FID on the Brass LNG project had suffered several postponements as it should have been taken in December 2006 and later in December 2008. It was also postponed to the first quarter of 2011 with construction expected to start by mid-2011. It was later postponed in 2012 to the first quarter of 2013.

Former President Olusegun Obasanjo, in 2006, facilitated the $10 billion Olokola Liquefied Natural Gas project overlapping the states of Ondo and Ogun and adjacent to the OK-Free Trade Zone under development.

The 12.6m-tonnes-per-annum facility, consists of four trains backed by the NNPC (49 per cent), Chevron (19 per cent), Shell (19 per cent) and the United Kingdom’s BG Group (13 per cent).

A Final Investment Decision was delayed after BG pulled out of the project in May 2012.

OKLNG’s fate was further put on hold when Chevron Nigeria Limited and Shell withdrew from the project.

Chevron had blamed its exit on the lack of progress on the project, eight years after its inception.

The General Manager, Policy, Government & Public Affairs, CNL, Mr. Deji Haastrup, confirmed in a statement that the company effectively pulled out of the project on July 31, 2013. The statement also confirmed that Shell pulled out of the OKLNG project on July 31, 2013.

The source, who reiterated that political interference was one of the major challenges facing the projects, said that OKLNG projects were on the front burner during the Obasanjo administration, but argued that attention shifted to Brass LNG since the former president left office.

Obasanjo, who seemed to have lent credence to this in his recent open letter to Jonathan, said, “some of our development partners were politically frustrated to withdraw from the Olokola LNG project, which happily was not yet the same with the Brass. I initiated them both. They were viable and would have taken us close to Qatar as LNG producing country.

Nigeria, which is the Saudi of Africa in oil and gas terms, is being overtaken by Angola only because necessary decisions are not made timely and appropriately.”

Continue Reading

News

Let’s Fight To Save Rivers’ Soul Together

Published

on

Rivers State Governor, Sir Siminalayi Fubara, has lamented that there is a fierce fight over the soul of the State to destroy it but noted that only the well-meaning persons who are standing firmly with him can wield the force of unity to save it.
Governor Fubara made the remark at the country home of Sir Celestine Omehia in Ubima community, Ikwerre Local Government Area of Rivers State on Saturday.
The Governor, accompanied by some elders of the State, was in Ubima to commiserate with Sir Omehia, who had just laid his late mother, Mrs Ezinne Cecilia Omehia, to rest after 95 years.
Governor Fubara said the visit was to demonstrate love and show support to Sir Omehia who, as a son, had satisfactorily performed the duty of giving his mother a befitting burial.
He said, “I have come here with a few of us; very respected elders of the State, to come and support you and say to you that ‘we sorrow with you’.
”The most important thing is to show our concern and love. Any human being that shows enmity to death, that person is not even normal.
”We also rejoice with you for a life lived well to fulfillment by Mama. We wish Mama safe journey. Let her stay well where she has gone.”
Governor Fubara told the elders of the need for every true lover of the State to synergise and be resolute in the fight to safeguard the soul of Rivers State.
The Governor decried the evil of politics of bitterness and the telling danger it has on the progress of the State, which according to him, should be discouraged as a bad political culture in contemporary times.
Governor Fubara said: “Anybody who claims to love this State should not be party to anything, directly or indirectly, that will bring us backwards. We will continue to support every course that will advance the interest of our dear Rivers State.
”And I am happy to say, and I’ve said it over and again, it doesn’t matter the number of people that are standing with me, I will stand on that side of truth.”
The Governor emphasised: “I will not, I repeat, I will not govern our dear State on my knees (bending). If that was the purpose, I will not do that. I will stand to govern our dear State and stand continually on the side of right.
”But politics of bitterness will not take us anywhere. So, I want to thank you that, at this stage, we have a few of you who understand that Rivers State belongs to everyone of us. We must, therefore, fight together to sustain the soul of this State,” he added.
Governor Fubara also spoke about the tanker inferno that has become a sad episode in the State with over 120 vehicles razed and about five lives lost, describing it as “great tragedy and very unfortunate.
”It is a very sad day in our dear State. Something happened in Eleme, along the route of Indorama Petrochemical and Fertiliser Company Limited. A tanker had an issue with a tipper, and there was an unfortunate situation that caused the State a very devastating loss.
”I went there this morning to see for myself what really happened, and I can tell you, I’ve not been happy since then. With all the dramas in our State, it is not even proper for us to add that to it.
”But it wasn’t our fault. It was just what impatience caused. The tanker driver, knowing the state of that road was not patient, and it resulted in that colossal loss. Over 120 vehicles were completely burnt and five lives were lost. It was very unfortunate.”
He commiserated with those who lost loved ones and others whose vehicles were burnt beyond repairs, and added that the State Government mourns and grieves with them.
In his speech, Sir Celestine Omehia, expressed appreciation, on behalf of his family, to Governor Fubara, his delegation and other friends, among whom, were those he described as matured elders, for the show of love.
He said his mother died at 95 years, which is 25 years of grace added to the 70 years as specified in the Bible, and assured that he will sustain her legacy because she was their role model.
Sir Omehia also said that he was well known as a man who takes decision and stands by it no matter the consequences.
He, therefore, declared: “I have taken a decision to be SIMplified. Where ever you go (Fubara), is where I will go. If you say tomorrow, you are no more interested in this position, I will also stop fighting for anything in Rivers State.
”But, God who gave you the opportunity will also give you all the wisdom, strength, power and everything that it takes to govern the people of Rivers State and beyond.”
He assured the Governor that almost the entire people of the State, including chiefs, elders, opinion leaders, women, youths, civil society groups and professionals across all spectrums of the State were praying and working assiduously for the success of his Administration.
Sir Omehia told the Governor that it is that support and prayers of the people that he needs to succeed, because, according to him, one with God, is with majority, and will always excel and succeed.
He, therefore, urged the Governor to continue in his strides to deliver good governance, peaceful and prosperous State to the present and future generations.
Highlights of the event were the offering of prayers by leaders of Ikwerre Supreme Council of Traditional Rulers for the Governor and his Administration as well as the symbolic presentation of gifts to Governor Fubara in appreciation of his peaceful disposition and quality leadership of the State.

Continue Reading

Breaking News

Tanker Inferno: We’re Saddened By Extent Of Carnage -Fubara

Published

on

Rivers State Governor, Sir Siminalayi Fubara, has described as very unfortunate the fire incident caused by a tanker conveying premium motor spirit (PMS), otherwise called petrol which burnt motorists and commuters beyond recognition and destroyed a good number of vehicles.
The incident occurred between Indorama Gate and Aleto Bridge on the popular and ever busy Eleme section of the East-West Road now undergoing major reconstruction by the Federal Government.
Governor Fubara expressed his sadness at the gory sights that he saw when he visited the scene of the incident, accompanied by the State Commissioner of Police, Olatunji Disu, and the State Commissioner for Energy and Natural Resources, Mr Uchechukwu Nwafor, on Saturday morning.
The Governor explained that he got a call from the Managing Director of Indorama Petrochemical and Fertiliser Company Limited in Eleme Local Government Area, informing him of the incident.
At the news of the incident, Governor Fubara stated that he immediate routed a call to the security agencies and instructed that they visit the scene to take charge of the security of the area to avoid escalation of the situation.
Governor Fubara said: “We are here to see for ourselves and get a first hand information of the incident of what happened yesterday night.
“About 7.30 – 8pm, we got information of the gravity of the incident. I was told that it was caused by a tanker vehicle that was conveying Premium Motor Spirit (PMS).
“In fact, I got the information through the MD of Indorama, and I immediately alerted the security agencies to make sure they take control of the security situation in the area.
“And from what we are seeing this morning, it was not a pleasant case. We recorded a huge number of vehicles being destroyed and lives lost.
Governor Fubara explained that he had already requested the relevant government agencies to provide him a detailed account of their findings to enable the State Government take appropriate decisions and actions to significantly remedy the situation and reduce the negative on the affected people.
“I have already asked the relevant agencies to give us a full brief so that we can come into the situation fully by seeing to how much we can support the families that are bereaved, and also cushion the effect of the loses, which I believe, is no fault of a good number of them.
“We all know the situation of this road. It is really unfortunate. Most of our people, when plying this road, should ply it with caution.
“I believe very strongly that this situation would have been avoidable, if the motorists had behaved properly. But it is late already. The damage has happened. This is the situation we have found ourselves. We will see how we can control the aftermath,” he added.

Continue Reading

News

82nd Birthday: Odu Eulogises King Dandeson Jaja

Published

on

Rivers State Deputy Governor Prof. Ngozi Nma Odu, has described King Dandeson Douglas Jaja as a great and humble King who has continued to be a light to the Kingdom of Opobo and Rivers State.
Prof Odu stated this during a thanksgiving service to mark the monarch’s 82nd birthday at St. Paul’s Anglican Church in Opobo Town, yesterday.
According to the Deputy Governor, on a special day like this, she wishes him God’s grace and innumerable blessings, stressing that his reign shall be long in good health.
In his testimony, King Dandeson Douglas Jaja, who disclosed that he is nothing without God, said his life has been God’s Gift and Grace all these years, stressing that it is the Grace of God that has brought him this far.
The king seized the moment to announce the conferment of the King Jaja Manila Tree Award, which is the highest honour in Opobo Kingdom to the State Chief Executive, Sir Siminalayi Fubara and the BALOLO of Opobo Award to Prof. Ngozi Nma Odu, the Deputy Governor on a date to be announced later.
In his Sermon, drawn from Psalm 122: 6,7,8, Ven. Emanuel Nwuju, the Vicar of St. Paul’s Anglican Church, Opobo Town, who spoke on the theme “Good Gifts Comes from God “said God has given us everything we enjoy in life, adding that whatever you are today is a gift from God.

Continue Reading

Trending