NLNG generates over $100bn revenue for Nigeria, equity holders – Attah
Tony Attah, Managing Director of Nigerian Liquefied Natural Gas (NLNG) on Wednesday disclosed that over $100 billion worth of revenue has so far been remitted to Federal Government and other equity holders in the company.
Attah disclosed this at the investigative hearing into the ‘proposed sale of the Nigerian Liquefied Natural Gas Limited, NLNG’; ‘Need to Investigate contract for modification of EGP3B production platform following the joint ventures agreement between the Nigerian National Petroleum Corporation and Chevron Nigeria Limited’; and ‘investigation of the contract for the upgrade of OML 58 Upgrade 1, the execution of Obote/Ubeta/Rumuji (OUR) pipeline’.
According to him, Federal Government through Nigerian National Petroleum Corporation (NNPC) which owns 49% equity got over $15 billion dividends and $6.5 billion tax, which positioned the company as the singular highest tax paying company in Nigeria and African continent.
Other shareholders namely Shell Gasa BV owns $25.6%, Total owns 15% while ENI International owns 10.4%.
On the company’s efforts towards reducing gas flaring in the country, Attah said: “despite our contribution to the country a lot of it is monetary more than $100 billion revenue and about $15 billion dividend to the government directly and also since we became tax-paying company since 2009, we’ve contributed more than $6.5 billion in taxes, helping to build a better Nigeria but essentially, we do more than financial contribution.
“As a result of Nigeria LNG being in existence, we have helped reduced gas flaring by more than 65% and will continue to work with our upstream suppliers to mop-up more because we produce the opportunity as the biggest gas sink for whatever gas is provided in the country.
We have the capacity to receive that gas but I think by far the biggest opportunity is in Nigeria’s brand and reputation. Before NLNG, Nigeria was actually No. 2 on the undesired league of gas flaring nations in the world. But today, we are No. 7 ahead of other countries like united State, I mean, United States is flaring more than Nigeria,” Attah observed.
He added that the company is spending about $120 million on the construction of Bonny-Bono road which will connect Bonny to port Harcourt, slated for completion within 40 months.
In his intervention, Randoff Brown (PDP-Rivers) noted that NLNG is the most significant arrow-head of the Federal Government’s quest to
eliminate gas flaring and derive value from the country’s 187 trillion
cubic feet of proven gas reserves.
“NLNG has covered about 119 Bcm or 4.2tcf of associated gas to export as LNG and natural gas liquids thus helping to reduce gas flaring by upstream companies from over 60% to less than 25%.
“NLNG mpos up gas that would otherwise be flared, thus making significant contributions to the nation’s income, delivering in the last 13 years over $13 billion on gas purchases from oil producing companies, of which the Federal Government of Nigeria owns 55% – 60% CIT and other taxes,” he said.
Also speaking, Diri Douye (PDP-Bayelsa) who sponsored the motion on the need to investigate the contract for the modification of the EGP 3B Production platform following the joint venture agreement between Federal Government, NNPC and Chevron Nigeria Limited, frowned at the delay in the completion of the project.
“Modification work on all 7 platforms was meant to have been completed by April 31st, 2013 at the rate of $64,179,198 but it eventually concluded in 2016 at a reviewed cost of $192.7 million. The implication being that, whereas, it was awarded the contract on the basis of being the lowest bid, it eventually became the highest bid.
“It is also alleged that Prime Source Limited (PSL) was poorly resourced in manpower, logistics, equipments and funding to undertake a job of such description. It is also instructive to note that PSL bid for the contract alongside a consortium, i.e Prime Source-Hensteel SOMECO, however the contract was ultimately awarded solely in the name of PSL.
While speaking on the development plans of the company, Attah unveiled the company’s plan to embark on $6 billion capacity development project for the Train 7, which has potential of creating 12,000 new jobs in the Niger Delta region.
“The big deal for us in Nigeria LNG is growing capacity. Currently we have six Trains with 22 million tonnes per annum capacity which is 7% of global market share of LNG. We want to grow back to the 10% which was what it was before. So we want to grow by about 35% capacity before Australia. We want to grow by about 355 capacity, that will come via Train 7 project for which we have commenced the engineering design and we are looking forward to take a final investment decision not too long.
“It’s always heart-warming for us at NLNG of being a global player and helping to build a better nation. As it were in helping to build a better nation in the context of train 7, is really working hard to deal with the main issues of the Niger Delta which has been put together by experts to eradicate poverty and unemployment and whatever we are able to tackle to change the narrative of the Niger Delta story.
“This project, we believe will be providing opportunity for over 12,000 jobs within the seven years that the project will be in existence,” the NLNG accounting officer told the Committee.
While speaking on the report on the planned sale of NLNG, Attah who dismissed the report argued none of the four company’s shareholders expressed interest in selling equity in the company.
“We have been invited on the purported sale of Nigerian Liquefied Natural Gas, we actually came in to express our views, that first of all, we are not aware on any intention or intent to sell Nigeria LNG or sell out its shares based on confirmation from our shareholders. Because we have gone to our four shareholders: NNPC, Total, Shell and Eni, they all confirm that they are not interested to sell their shares. For us it came as a surprise,” Attah said.
On his part, Patrick Olimna, Total’s Executive Director (Assets management and Energy Solution), denied report on the sale of NLNG, explained that: “within the NLNG, the shareholding community, we did not have such a discussion.”
While speaking on behalf of Bureau of Public enterprises (BPE), Yusuf Adamu, Director of Mines and Steel, disclosed that NLNG was not part of the scheduled assets for commercialization and privatization
While ruling on the presentations from stakeholders in the industry, Frederick Agbedi, chairman, House Committee on Gas Resources tasked the company on the need to replicate its model for the country to take its rightful position in the global market and the implementation of developmental projects.
“We join the elders of the Niger Delta, and we are not in support on any contemplation to sell off NLNG. The shares held by NNPC on behalf of the country, the people of Nigerians have vested interests in the company, so they are not shares that any government can take it in whatever guise. You don’t play politics which such investment even if that is the only revenue we can rely on as a nation.
“On that note, the committee will step down the motion for the committee’s consideration. On the other two motions, we are frustrated by the position of the NNPC. What is important to them is that we are receiving dignitary from other country,” Agbedi said.
Worried by the absence of the Maikanti Baru, NNPC Group Managing Director at the hearing, the Committee also resolved to adjourn sine die, till the NNPC helmsman appear in person to respond to queries on the $114.580 million variation on the modification of the EGP 3B Production platform.
KEHINDE AKINTOLA, Abuja