Tunde Sulaiman
8 November 2009
Lagos — After months of disengagement from Brass LNG Limited, American oil giant and major player in Nigeria's oil and gas sector, Chevron Nigeria Limited, Friday re-joined the project as a gas supplier of Nigeria's second LNG firm, in what industry watchers say is a huge boost to the federal government's post-amnesty programme in the Niger Delta.
The presence of Chevron's team, which was led by the company's General Manager (Commercial and Business Development), Mr. Hament Patel, sources said, excited other shareholders present at the meeting.
The American company's return, the source further said, was not only a possible sign of great things, economically, that would emanate from the Niger Delta region, it is also a clear signal that the Brass LNG project is on course and would be delivered as scheduled.
As an attestation to the plausibility of the project and the importance the company attaches to the return of Chevron to its fold, Chairman of Brass LNG Ltd, Dr. Jackson Gaius-Obaseki, was said to have flown-in from Europe on the day of the meeting to pilot the affairs of the session and to receive Chevron back into the project.
He was quoted as saying that he was excited by the return of Chevron to the family, and added that the firm, which has always been a member of the Brass LNG family since 2001, when he was first appointed chairman of the LNG company's Board, was an important partner to the realisation of the overall goal of Brass.
The source further quoted Gaius-Obaseki as having expressed dissatisfaction upon discovering when he was re-appointed chairman of the firm in 2007 that Chevron had left the Board after his retirement in 2003.
"We are excited to have them back as an important gas supplier to the project. Their return is a strong pointer that they are convinced that the project is a realistic one and also provides an avenue to contribute their quota to government's effort in tackling the current challenges in the Niger Delta," the source quoted Gaius-Obaseki as saying.
Already, President Umaru Musa Yar'Adua has granted a direct port status in Bayelsa State to the Brass LNG Ltd to facilitate an unhindered transaction of the import and export businesses of the firm. In the same vein Vice-President Goodluck Jonathan has visited the project site to see things for himself, at the end of which he expressed satisfaction and pledged government's continued support for the program.
Meanwhile, Minister of Petroleum Resources, Dr. Rilwanu Lukman, has re-echoed the Federal Government's support for Brass LNG Ltd and promised it all the needed assistance for success in its mandate. The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Mohammed Barkindo, had also restated NNPC's support for a successful completion of the project.
It will be recalled that gas supply has been an issue to the multi-billion dollar project. This is because of the inability of Total Nigeria Ltd and Nigerian Agip Oil Company (NAOC) JV to meet the 11.6 TCF of gas required for the first two trains of the Brass LNG Ltd to take-off.
The good news is that, with its return, Chevron will supply the shortfall...however, discussions are also in progress with Exxon-Mobil and Shell Petroleum Development Company (SPDC) Ltd. But their supply schedule will not meet trains 1 and 2 but, will be available for the expansion Trains. So, with the gas supply needs of Brass LNG Ltd achieved, the project and its shareholders are now pleasantly proceeding towards the FID which is targeted for the end of year 2010", Gaius-Obaseki said in a telephone interview.
Incorporated on December 9, 2003, Brass LNG Limited was a product of the joint venture agreement that was signed following a conceptual study and Memorandum of Understanding (MoU) agreed by the Federal Government, Nigerian National Petroleum Corporation (NNPC), Nigerian Agip Oil Company (NAOC), and Phillips Oil Company Nigeria Limited (POCNL).
The current shareholders are NNPC, ENI SpA, Phillips (Brass) Limited (an affiliate of ConocoPhillips) and Brass Holdings Company Limited (an affiliate of Total).
In July, 2004, Total joined the Board as a shareholder, replacing Chevron Nigeria Limited. With this development, the shareholding configuration became NNPC 49% with ConocoPhillips, Agip and Total having 17% each.
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