21 September 2006
Lagos — The Nigerian National Petroleum Corporation (NNPC) and three other oil companies yesterday in Abuja signed a $7 billion (about N910 billion) shareholders agreement for execution towards the development of the Brass Liquefied Natural Gas (LNG).
The other companies that are involved in the execution of the agreement who participated in the signing ceremony are ENI International, Philips (Brass) Limited (an affiliate of Conocophilips) and Brass Holdings Company Limited (an affiliate of Total)
The shareholders agreement regulates the manner in which Brass LNG Limited will undertake the project for the construction and operation of two liquefied natural gas trains at Brass in Bayelsa State and the delivery of LNG to the Atlantic Basin gas market
Speaking at the event, the Group Managing Director (GMD) of NNPC, Mr Funsho Kupolokun explained that though the agreement is $7billion, "it is too early to say the exact amount of the project but if it can be put within the range of six to seven billion dollars it is a big money"
Explaining that the agreement is the document that will govern the relationship between shareholders and the management of the Brass LNG Project in the running of the business of the company, Mr Kupolokun noted that the ceremony was a demonstration of a major step toward the success of the Brass LNG Project.
Stating that the event was an indicator of the project's steady progress on the path towards achieving the stated goals of producing and marketing LNG in a few years from now, he put the sharing equity at 49 per cent, for NNPC and 17 per cent each for each of the three shareholders, adding that production is expected to commence late 2009 or latest first quarter of 2010".
The contract for the Front End Engineering Design (FEED) for the project was awarded to Betchel Corporation; a San Francisco USA-based engineering company in November 2004. Brass LNG Limited has continued to make progress through optimizing FEED designs, preparing the scopes of work from the award of Engineering Procurement and Construction (EPC) contracts and prequalifying contractors for the EPC activities.
Mr Kupolokun encouraged the management of the Brass LNG to be focused in the implementation of the project as it remains the desire of the shareholders to take the Technical fnal Investment Decision (FID) on the project by the last quarter of this year and the commercial FID early in 2007"
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