Omoh Gabriel
19 April 2004
Nigeria and other stakeholders in the LNG project are set to reap the dividend of their investment as the company will, at its forthcoming AGM, declare a dividend of US$569 million. The high profile dividend confirm the faith in the LNG project as second to crude oil in revenue generation for the country.
Sources close to LNG said that Nigeria and other shareholders of Nigeria LNG Limited are beginning to reap the rewards of their investment in the natural gas project.
According to the source the company is set to declare a dividend of US$569 million to its shareholders this year on basis of $500 per ordinary share.
AS a result, Nigerian National Petroleum Corporation (NNPC) with 49 per cent shareholding will receive US $279 million as dividend payout. The rest of the money will be shared amongst Shell with 25.6 per cent holding, which will receive a dividend of US$145.66 million, Total which has 15 per cent stake in the NLG project will get a dividend of US$85.35 million while ENI with 10.4 per cent stake is to receive US$59.17million.
NLNG with only three trains in operation, recorded a whopping $1.9 billion revenue last year and $1.09 billion in 2002. The figure will climb next year when NLNG's 4th and 5th trains, also known as NLNGPlus, come on stream.
Revenue from Nigeria LNG Limited will hit $3.5 billion mark when the NLNG's six trains come into operation. It is expected that the final investment decision for the sixth train will be taken very soon, while the project will be concluded in 2008. With this NLNG will establish an unprecedented record of building six trains in eight years.
Nigeria currently earns about US$13 billion from oil exports, which accounts for 90 per cent of Nigeria's revenue. At six trains with a capacity of over 22 mpta, NLNG's total revenue may be a little more than 25 per cent of Nigeria's revenue.
With over US$11billion investment, NLNG is easily the biggest single privately undertaken industrial project in Africa. The company within a very short time has established a reputation for fast growth, reliable supply and world-class HSE records.
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