Energy Briefs
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IF urgent actions are not taken to address the sagging investment profile in the oil and gas sector, Nigeria may lose its high ranking in the Liquefied Natural Gas, LNG, to growing competition in the world. Babs Omotowa, managing director, Nigeria Liquefied National Gas, NLNG, who made this declaration at a media luncheon organised by Petroleum Club in Lagos, said “with no new investments, Nigeria will possibly drop from fourth to 10th position by 2020.”
Nigeria, with a production base of 19.4 million tonnes per annum (mtpa) is currently ranked fourth in the global LNG scale after Qatar, Malaysia Australia. He lamented that the sector has recorded less investment since 2007 till date, while firms continued to divest due to risks and uncertainties around the regulatory framework.
Other major issues impeding investment include poor joint venture funding, Production Sharing Contracts, PSC, challenges, delay in passage of Petroleum Industry Bill, PIB, Insecurity/bunkering and real capacity development in line with the Nigerian Content Development, NCD.
Besides, Omotowa revealed that the company had spent about $360 million on the train seven projects that has been delayed for about 10 years now. Omotowa, therefore called for improved industry collaboration, adding that government’s role on policy, business climate, investment model is key to survival of the industry.
He enjoined the Petroleum Club to be more influential on government policy and actions in the industry. The NLNG boss, however, disclosed that the company has generated $90 billion since 1999. According to him, the company’s payment to Joint Venture, JV feed gas suppliers from inception till date is about $21 billion; and $33 billion paid to the federal government through its shareholding in Nigerian National Petroleum Corporation, NNPC.
He further stated that the company, since 2008, contributed about four percent of Nigeria’s yearly Gross Domestic Product, GDP, adding that NLNG provided more than 12,000 jobs each construction year. “Overall, the major sub-contractors employed over 18,000 Nigerians in technical jobs in the base project.
“NLNG’s shipping subsidiary Bonny Gas Transport, BGT, recently ordered new six Dual Fuel Diesel Engine, DFDE, LNG carriers from Hyundai Heavy Industries (two ships) and Samsung Heavy industries (four ships). Four of these have been delivered and have since made their maiden voyages,” he said.
— May 2, 2016 @ 01:00 GMT
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