facts & figures on nlng 2015
TRANSCRIPT
FACTS & FIGURES ON NLNG 2015
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 52
Facts and Figures on NLNG 2015Facts and Figures on NLNG is an annual
compendium of facts about Nigeria NLNG
Limited. This publication is produced by the
Corporate Communication and Public Affairs
Department of Nigeria LNG Limited.
More information on the company's operations
can be found at www.nigerialng.com
All correspondence to:
Nigeria LNG Limited,
Intels Aba Road Estate,
KM 16, Port Harcourt-Aba Expressway,
Port Harcourt, Rivers State. Nigeria.
Phones: +234 (0) 803 907 4000,
802 473 4000, (0) 84 28 4000
E-mail: [email protected]
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 3
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 54
Contents
The Company 7
Management Profile 12
The Plant 23
NLNG and its Contributions
to the Nigerian Economy 29
Gas Supply 38
Commercial 40
Shipping 44
Financing 57
Nigerian Content 61
The Environment 68
Community Relations and Development 76
The Prizes: The Nigeria Prize for Science,
The Nigeria Prize for Literature and
The Nigeria Prize for Literary Criticism 91
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Fa c t s a n d F i g u r e s o n N L N G 2 0 1 56
THE COMPANYNigeria LNG Limited (NLNG) was incorporated as a limited
liability company on May 17, 1989 to harness Nigeria's vast
natural gas resources and produce Liquefied Natural Gas
(LNG) and Natural Gas Liquids (NGLs) for export.
It is owned by four shareholders, namely, the Federal
Government of Nigeria, represented by Nigerian National
Petroleum Corporation (49%), Shell (25.6%), Total LNG
Nigeria Ltd (15%) and Eni (10.4%).
The company has two wholly–owned subsidiaries: Bonny Gas
Transport (BGT) Limited and NLNG Ship Management Limited
(NSML).
Bonny Gas Transport Limited
Bonny Gas Transport Limited was established in 1989,
following the incorporation of Nigeria LNG Limited, to provide
shipping capacity for NLNG project.
The company was set up with an ordinary equity holding from
Nigeria LNG Limited and preferential equity holding from the
sponsors, NLNG's shareholders.
NLNG Ship Management Limited
NLNG Ship Management Limited (NSML) is another
wholly–owned subsidiary of NLNG.
The company was set up in 2008 to realise NLNG's vision of
resourcing, developing and managing shipboard personnel for
BGT vessels.
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Our Vision
…a global LNG company helping to build a better Nigeria.
Nigeria LNG Limited will be a global LNG company
renowned for its operational excellence, cost leadership, high
HSE standards, honesty and integrity.
We help to build a better Nigeria by processing, shipping and
marketing efficiently and profitably the country's gas resources
and by putting out the flares, thus diversifying the economy
and minimising the environmental impact of our activities and
products.
We will set the standards in community relations and
technology transfer, and actively promote the sustainable
development of Nigerian businesses.
We will provide to our shareholders a good return on their
investment.
We will provide an exciting and fulfilling place to work and
the opportunity for staff to develop their potential.
Finally, we will execute and operate our business in Nigeria
with an international outlook and mindset.
Our Mission
To market, produce and deliver liquefied natural gas and
natural gas liquids to buyers safely, reliably and profitably,
growing our company and its people to their full potential, and
being a trusted partner with all our shareholders in the
sustainable development of Nigeria's gas industry and NLNG
host communities.
Our People
Nigeria LNG Limited's workforce comprises direct-hire staff
and secondees from shareholder companies, working together
to achieve the company's corporate objectives, through a set
of shared values.
Direct staff are recruited after a rigorous interview, following
the advertisement of vacancies on the company's website and
in national newspapers. Employment and appointments are
made on merit, based on academic qualification, relevant
work experience and competence.
The shareholders appoint representatives to the Board of
Nigeria LNG Limited. To execute the decisions of the Board is
a Senior Management Team (SMT). Supporting the SMT are
the Extended Management Team (EMT) and over 1,000
quality staff.
Shared Values
Integrity
Teamwork
Excellence
Caring
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 58
SHAREHOLDERS
Nigerian National Petroleum Corporation (NNPC)
Nigerian National Petroleum Corporation was established in
1977 under the laws of the Federal Republic of Nigeria. It is
the corporate entity through which the Nigerian government
participates in the oil and gas industry. NNPC and its
subsidiaries dominate all sectors of the industry—exploration,
production, refining, pipelines, marketing, crude/product
exports, and petrochemicals. NNPC owns 49% of the shares
in Nigeria LNG Limited.
Shell Gas B.V. (SGBV)
Shell Gas B.V. (SGBV) is a company incorporated under the
laws of the Netherlands. For more than 40 years, Shell Gas
has been investing in and delivering some of the world's
largest and most complex gas projects. Besides its interest in
Nigeria LNG Limited, Shell Gas holds the largest equity share
of LNG capacity among international oil companies, with a
leading position in LNG shipping, marketing and trading of
natural gas and power in Europe, North America and Asia
Pacific. It is a member of the Royal Dutch Shell Group of
Companies which operates throughout the world in all sub-
sectors of the petroleum industry. SGBV owns 25.6% of the
shares in Nigeria LNG Limited.
Total LNG Nigeria Limited
Total is a major integrated oil and gas company active in all
sectors of the petroleum industry. It operates in more than 130
countries, and is, today, the fifth largest publicly traded
integrated international oil and gas company in the world. In
Nigeria, the company is one of the largest oil and gas
producers through its involvement in more than 50 permits,
including nine as operator. Total owns 15% of the shares in
Nigeria LNG Limited.
Eni International (N.A.) N.V.S.a.r.l
Eni is one of the world's major integrated oil and gas
companies engaged in all sectors of the petroleum business. It
is involved in exploration, development and production of oil
and natural gas in 70 countries. Eni owns 10.4% of the shares
in Nigeria LNG Limited.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 9
NLNG Board of DirectorsOsobonye R. LongJohn Chairman
Babs Omotowa Managing Director/Chief
Executive Officer
Isa Mohammed Inuwa Deputy Managing Director
Dr. Joseph Dawha
Dr. Jamila Shu'ara
Cordelia C. Agboti
Bagudu Hirse
Ruud de Jongh
Markus Droll
Oghenegweke Ajaifia
Elisabeth Proust
Carlo Bottaro
Edith Unuigbe General Counsel/
Company Secretary
BGT Board of DirectorsOsobonye R. LongJohn President
Babs Omotowa Vice President
Isa Mohammed Inuwa
Dr. Joseph Dawha
Dr. Jamila Shu'ara
Aleruchi Cookey-Gam
Umaru Dahiru
Ruud de Jongh
Aydin Esener
Oghenegweke Ajaifia
Antonino Fiore
Luc Gillet
Donald H. Malcolm
David Astwood
Malcolm Mitchell Company Secretary
NSML Board of DirectorsDavid Ige Chairman
Isa Mohammed Inuwa Vice Chairman
Akachukwu Nwokedi Ag. Managing Director
Maikanti Baru
Aydin Esener
Temilola Okesanjo
Laurent Routisseau
Antonino Fiore
Edith Unuigbe Company Secretary
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MANAGEMENT PROFILE
MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER
Babs Omotowa is the Managing Director/Chief Executive
Officer of Nigeria LNG and the Vice President of Bonny Gas
Transport. He is also the current Global President of the
Chartered Institute of Procurement and Supply (CIPS)
headquartered in the United Kingdom.
Babs has over 20 years experience in the oil and gas industry,
and prior to his current role at Nigeria LNG Limited, he was a
Vice President in Shell Sub-Sahara Africa, a Director of Shell
Petroleum Development Company, Nigeria (SPDC) and also
Director of West Africa Gas Pipeline Company.
He holds a degree in Industrial Chemistry and a Master of
Business Administration (Operations Research) from the
University of Ilorin. He also holds a Master of Business
Administration (Supply Chain Management) from University of
Leicester, United Kingdom and he is a Fellow of the UK
Chartered Institute of Procurement and Supply.
After a stint as a chemistry and mathematics teacher at Bishop
Smith College, Ilorin, he joined SPDC in 1993 where he
started his career as a management trainee and rose rapidly
to senior operations roles in the Western Operations in Warri,
before he went on international assignments with Shell in the
United Kingdom, Holland, and Norway, serving in various
managerial roles in Production, Shipping and Business
Improvement. He returned to Nigeria in 2006 as General
Manager Supply Chain for Shell Nigeria Exploration and
Production Company (SNEPCo) and later SPDC.
Over his distinguished career across Europe and Africa, Babs
has been renowned for strategic transformation, successful
turnaround, as well as maximizing value chains. His goal in
NLNG is to sustain the historical excellent performance, move
the company to the next level and make NLNG an inspiration
to Nigeria.
Babs is epitomised by his personal core values of Humility,
Modesty, Diligence, Excellence and Integrity. He is married
with children and his hobbies are reading and listening to
music.
Babs Omotowa
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DEPUTY MANAGING DIRECTOR
Isa Mohammed Inuwa, a staff of NNPC is currently on
secondment to Nigeria LNG Limited as Deputy Managing
Director. With about 32 years professional work experience,
his academic background is in Accounting and Finance at
both Bachelor's and advance degree levels. In addition, he is
an alumnus of such business schools as IMD, INSEAD, .
Wharton, Witswatersrand, Said and Templeton Colleges of
Oxford University, Sendero Institute, Cranfield School of
Management and State University of New York. His
professional affiliations include membership of the Chartered
Institute of Bankers (UK and Nigeria) and associateships of the
Institute of Credit Administrators and the Institute Management
Consultants. His areas of academic interest cover Business
Strategy, Leadership and Accounting Policy.
Prior to joining NNPC in 2005 under the Pace Corporate
Transformation Programme as an Experienced Hire, Mr. Inuwa
had spent all his working life in the banking and financial
services industry where he rose to occupy executive, board
level positions at several banks.
At NNPC, he had stints as General Manager, Budget &
Projects, General Manager, Finance, NAPIMS and Group
General Manager, Corporate Audit, a position from which he
was seconded to NLNG. In addition to his primary job
responsibilities at NNPC, he was, and remains involved, in
actively providing internal consulting services through
leadership of, or participation in, policy and strategy initiatives
across the organization in such areas as HR, ERP, IT,
Renewable Energy, Retail, NCF, CP&S and Services.
On the outside, he has participated in several state and
Federal Government ad hoc assignments, served on several
boards and represented NNPC on the Federal Government's
Economic Management Team between 2006 and 2008. He
was previously an alternate member of Brass LNG Board Audit
Committee and alternate Chairperson of the Board Audit
Committee of West African Gas Pipeline Co. Ltd.
For years, Mr. Inuwa has been engaged in the activities of
several community development and Not-for-Profit
organizations, as patron, advisor, executive committee or floor
member. He is currently a trustee of two NGOs that care for
children with autism.
He reads widely, listens to jazz music, teaches at any
Isa Mohammed Inuwa
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 13
opportunity and recently retired from power biking. As a
member of Strategos Collective – a group of mentally restless
persons – he participates in endless discourses on Strategy, be
it on military expeditions, business turnarounds or on how Alex
Ferguson won mid-week matches!
He is married with two children and looks forward to
becoming a grandfather soon.
GENERAL MANAGER, PRODUCTION
Chima Isilebo is the General Manager, Production (PD),
responsible for the plant complex in Bonny, Rivers State, as
well as Gas Supply/Pipelines and Support Infrastructure.
Chima is a seasoned professional with more than 30 years of
oil and gas industry experience in both Upstream and
Midstream businesses, covering diverse disciplines including
Engineering and Project Management, HSSE, Business
Planning and Economics, Venture Governance, LNG
Commercial and Operations/Asset Management. A 1980
graduate of the University of Nigeria, Nsukka with a First
Class (Hons) degree in Mechanical Engineering, Chima
started his career with Shell Nigeria in August 1981, as a
Production Facilities Engineer, and has had a series of
challenging assignments in various locations within Nigeria
and around the world including, Europe (UK and the
Netherlands), Middle East (Oman) and South East Asia (Brunei
and Singapore).
He served as Operations Adviser – Shell UK St Fergus Gas
Terminal, and Operations Support/HSEQ Manager for Brunei
LNG, before being appointed in 2004 as the Start-Up
Manager and subsequently the first Nigerian Operations
Manager for Nigeria LNG Limited in 2006. During that
period, he oversaw the rapid expansion and integration of the
plant from a three-train 10 million tonnes per annum (mtpa) to
a six-train 22 mtpa operation.
Between 2008 and 2010, he was back in Shell Upstream
International as Vice President (Gas & Power) with
responsibility for South-East Asia (based in Singapore) where
he served as a Director on the boards of a number of Shell
Joint Venture companies in Brunei and Malaysia, including
Brunei Shell Petroleum, Brunei LNG, Brunei Shell Tankers,
Brunei Gas Carriers and Shell MDS in Malaysia.
He returned to NLNG again in 2011 as the first Nigerian
General Manager, Production.
Chima Isilebo
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GENERAL MANAGER, COMMERCIAL
Patrick Olinma holds a bachelor and a master of law degrees
from the Universities of Benin and Lagos respectively, as well
as a Master of Business Administration (MBA) from the Grand
Ecole ESCP, Paris, France. And has attended advanced
management and strategy executive education programmes at
IMD, Switzerland; INSEAD, France; Oxford University and
Harvard Business School.
He began his career as a legal counsel in Abudu, Akinyemi &
Ogunde in 1990 and was managing counsel when he left the
law firm to join French oil giant Total Nigeria in 1996 where,
amongst other roles, he had oversight function of technical
services contract and advised operations teams on host
communities, conflict resolution, as well as relations with state
and local government agencies.
He was also lead counsel in the negotiation of various
production sharing contracts and joint venture oil and gas
agreements, notable among them, the USD1.2 billion
unitisation and unit operating agreement for the
Amenam/Kpono Fields Off-shore, Nigeria, and the USD1.06
billion gas sellers' “direct agreement” with lenders to Nigeria
LNG Limited's Trains 4 and 5 Project. He was also Secretary,
Total Nigeria Pension Fund with responsibility for legal aspects
of pension fund management and regulatory reporting and
compliance matters.
Patrick, who has a strong track record in closing complex
deals, in 2005 led the 2.5 mtpa LNG Sales and Purchase
Agreement negotiations with Suez LNG for the Yemen LNG
Project and was responsible for the 3.25 mtpa LNG Sales and
Purchase Agreements with BG Gas Marketing Limited and
Occidental Energy Marketing Inc. for NLNG's Train 7 Plus
project. In his time at Nigeria LNG, he has successfully led
several international LNG Sales Price Reviews including three
international arbitrations. Before he came to Nigeria LNG
Limited as General Manager, Commercial in 2007, Patrick was
Deputy General Manager (NLNG Commercial) in Total
Exploration & Production Nigeria. He speaks regularly at
international conferences.
Patrick Olinma
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GENERAL MANAGER, FINANCE
Solomon Segun Folaranmi is a chartered accountant with an
accounting degree from University of Lagos, and a Master of
Business Administration (MBA) from University of Benin. His
career spans more than 30 years in corporate finance, project
accounting, investment portfolio management, joint venture
financing, capital assets oversight and investor relations. These
are complemented by numerous international courses from
Cambridge to Oxford.
He began his career at the University of Lagos as a Graduate
Assistant before joining NNPC in 1983 as a treasury
accountant. In 1986, he moved to Gas Division of Oil and Gas
Sector which later became Nigerian Gas Company Limited in
1988 where he spent 18 years as accountant in various gas ,
projects including Imo-River/Aba Gas Supply Project,
Alakiri/Onne Gas Supply Project, Escravos/Lagos Gas Pipeline
Project, Obigbo/Afam Gas Supply Project. He rose through the
ranks to become Finance Manager, CFO, in 2004.
In 2005, he left Nigerian Gas Company Limited for NNPC
London office where he served at different times as Finance
Manager and Acting General Manager, NNPC London office,
before proceeding to NNPC Pension Fund Limited in 2012 as
the General Manager, Finance, where he managed an
investment and assets portfolio worth N270 billion.
In 2013, Mr. Folaranmi was appointed General Manager,
Finance, of Nigeria LNG Limited.Solomon Segun Folaranmi
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GENERAL MANAGER, EXTERNAL RELATIONS
Kudo Eresia-Eke, a seasoned and accomplished
communicator and administrator with rich experience in the
media, academia, government and the oil and gas industry,
holds a Ph.D in Political Theory from the University of Port
Harcourt, and a bachelor's degree in Mass Communication
from the University of Lagos. He started his communication
career straight from secondary school, joining the Nigerian
Television Authority as a presenter and newscaster. He later
served at the Daily Times, the Guardian Newspaper, Rivers
State Television, Radio Nigeria, Radio Rivers, and Sunray
Group of Newspapers from where he resigned in defence of
professional principles and ethics. For years, he was also a
columnist for the Vanguard Newspaper.
Kudo has a wealth of experience in Public Service, too. He
served variously as Rivers State Commissioner for Information
and Culture and State Director of the National Orientation
Agency.
He has also enjoyed teaching stints in various universities in
Nigeria and South Africa and was the founding staff of the
Centre for Advanced Social Science, Port Harcourt.
Since joining the oil and gas industry 16 years ago as pioneer
Community Relations and Development Manager for Nigeria
LNG Limited, Kudo has served in other managerial positions
including Public Affairs Manager, and Government Relations
Manager. He is a prolific writer with numerous publications
spanning poetry, short stories, inspirational and academic
essays.
He belongs to several professional organizations including the
International Association of Business Communicators. He is
also on the board of several academic and development
agencies including the Rivers State Sustainable Development
Agency, RSSDA.
Kudo Eresia-Eke
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GENERAL MANAGER, HUMAN RESOURCES
Peter Ogheneovo Odjoji obtained a bachelor's degree in
Philosophy and a master's degree in Industrial and Labour
Relations from the University of Ibadan in 1980 and 1982
respectively. He is a member of Nigeria Industrial Relations
Association and Institute of Chartered Mediators and
Conciliations and an Associate Member of the Chartered
Institute of Personnel Management of Nigeria (AIPM).
Peter's over 30 years work experience in the Nigerian oil and
gas industry kicked off at Warri Refinery and Petrochemical
Company (WRPC), a subsidiary of Nigerian National
Petroleum Corporation, NNPC, in 1983 where he was
employed as an Industrial Relations Officer and rose to
become Head, Industrial Relations; Head, Recruitment,
Records and Appraisals; Head, Management Training; and
Head, Litigation and Discipline. He was the Secretary to
WRPC Top Management Committee and Services Executive
Management Committee for over eight years. In 1999, he was
moved to the Centre for Petroleum Studies, Kaduna where he
handled Non-Technical Programmes.
He was transferred to NNPC Headquarters in 2001 where he
rose to the position of Manager, Employee Relations in 2006.
Peter has participated in over 20 Executive Committees
involving HR practices, Strategic Planning, Recruitment,
Management Promotions, Value and Vision, Discipline and
Total Quality Management. His career has recorded sterling
achievements, notably, the establishment of an Industrial
Relations System in NNPC adjudged to be the best in the
industry and the resolution of industrial relations conflicts
involving some of the IOCs with the national unions. He was
Chairman and Coordinator of the Nigerian Oil & Gas Industry
Games (NOGIG) for a period of 10 years.
He was also bestowed with several awards including the
NNPC's Group Managing Director's Award for Excellence in
2005 and Best Employee Relations Manager in the Oil and
Gas Industry in 2006.
Before his appointment as General Manager, Human
Resources, Nigeria LNG Limited in January 2014, he was
General Manager, Human Resources in the Corporate
Headquarters of Nigerian National Petroleum Corporation
(NNPC). Peter is also a member of the NLNG Ship
Management Limited (NSML) Board. Married with children,
Peter has attended numerous senior management courses
locally and internationally.
Peter Ogheneovo Odjoji
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GENERAL MANAGER, NLNG SHIPPING
Temilola Fatai Okesanjo started his career in the maritime
industry in 1981 as a Deck Cadet in the now defunct Nigerian
National Shipping Lines (NNSL). He later graduated from
Australian Maritime College as a Master Mariner in 1990.
Soon after graduation, he worked briefly as a Master Mariner
on Oil Tankers & Terminals before proceeding to World
Maritime University in Malmo, Sweden, to pursue a Master of
Science degree in Shipping Management which he obtained
in 1994.
Temilola also sat for the (London) Institute of Chartered
Shipbrokers (ICS) examination, qualifying as a Chartered
Shipbroker (MICS) in 1995. He has, at various times, worked
as a Marine Superintendent/SBM Pilot for Texaco Overseas
Petroleum Company, Shell Petroleum Development Company
(SPDC), Mobil Producing Unlimited, and Petroleum
Development Company of Oman before joining NLNG in
1999 as Head of Shipping Operations.
Temilola became the first Nigerian employee to rise to the
position of General Manager, Shipping, in 2005.
Temilola has inspired landmark achievements in the Shipping
Division, remarkably the setting up of the subsidiary, NLNG
Ship Management Limited (NSML), a ship management and
manning subsidiary of Nigeria LNG Limited. He currently
leads the BGT Plus Project – a project that will deliver six
newbuild LNG Carriers into BGT Fleet in replacement of the six
old BGT LNG Carriers.
Temilola Fatai Okesanjo
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GENERAL COUNSEL/COMPANY SECRETARY
Edith Unuigbe holds a bachelor's degree in Law from Obafemi
Awolowo University, Ile-Ife and a Master of Laws degree from
Harvard Law School, Harvard University in Cambridge,
Massachusetts, USA. Edith qualified in the Mini MBA in Oil
and Gas in Houston USA in 2008; obtained the International
Executive Programme Certificate from INSEAD Business
School, Fontainebleau, France in 2009; attended and
obtained a Certificate in Women's Leadership Forum
(Innovative Strategies) from Harvard University, Cambridge,
Massachusetts in 2011; and the Advanced Management
Programme Certificate from Wharton Business School,
Pennsylvania, USA in 2012.
She is the General Manager/General Counsel/Company
Secretary of Nigeria LNG Limited and Company Secretary of
NLNG Ship Management Limited.
Edith began her career in 1982 with the Office of the Vice
President of Nigeria in the defunct second republic during her
compulsory national youth service as a Senior State Counsel,
on secondment from Sherman & Sterling, Washington DC,
advisers to the Nigerian LNG Project.
Her banking career began in United Bank for Africa (UBA) as
a Legal Counsel, Corporate Finance. In 1984, she joined
Kapital Merchant Bank Limited as legal officer and sub-
manager. She moved up to become the company's Legal
Adviser/Company Secretary in 1988 before leaving for
Commercial Trust Bank Limited in 1990. At Commercial Trust
Bank Limited, she was an AGM and Group Head of the
Investment Group, Financial Services and Export Unit.
Between 1992 and 1997, she served as the Chairperson,
Constitution Review Committee of the Money Market
Association of Nigeria.
Edith joined Nigeria LNG Limited in 1997 as Head, Legal
(Commercial) and rose to the position of Company Secretary
and Legal Adviser in 1998. In her various roles, she drafted
and negotiated the Engineering, Procurement & Construction
(EPC) contracts for all NLNG expansion projects and Gas
Sales Agreements (GSAs) with the joint venture partners of
NNPC. In 2006, she became the General Counsel/Company
Secretary of Nigeria LNG Limited in which role she manages
NLNG's legal services and provides secretariat services to the
Boards of Directors of NLNG, BGT and NSML.
Edith Unuigbe
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 520
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Fa c t s a n d F i g u r e s o n N L N G 2 0 1 522
THE PLANTIn November 1995, a Final Investment Decision (FID) was
signed by the shareholders to build a Liquefied Natural Gas
(LNG) plant in Finima, Bonny Island in Rivers State. This was
followed in December 1995 by the award of a turnkey
Engineering, Procurement and Construction (EPC) contract to a
consortium of engineering firms comprised of Technip,
Snamprogetti, M.W. Kellog and Japan Gas Corporation (TSKJ)
for the Plant (consisting of two trains: Trains 1 and 2, called
the Base Project), the Gas Transmission System (GTS) and the
Residential Area (RA).
Construction at the plant site commenced in February 1996
and on August 12, 1999, Train 2 was ready for start-up.
Production of LNG commenced on September 15. Train 1
subsequently came on stream on February 27, 2000.
The second phase of development, called Expansion Project,
commenced with an FID in February 1999 to develop Train 3
and the plant's condensate stabilisation system. Train 3 was
completed and came into operation in November 2002.
The next phase of development called the NLNGPlus project,
comprised of Trains 4 and 5, commenced with an FID in
March 2002. Train 4 came on stream in November 2005 and
Train 5 was started up in February 2006.
NLNGSix project, consisting of Train 6 and additional
condensate processing and additional LPG storage and Jetty
facilities commenced with an FID in 2004. Train 6 became
operational in December 2007.
With six trains currently operational, the entire complex is
capable of producing 22 million tonnes per annum (mtpa) of
LNG, and 5 mtpa of NGLs (Liquefied Petroleum Gas [LPG] and
Condensate) from 3.5 Billion (standard) cubic feet per day
(Bcf/d) of natural gas intake.
Plans for building Train 7 that will lift the total production
capacity to 30 mtpa of LNG are currently progressing with
some preliminary early site preparation work initiated. Further
work awaits an FID by the shareholders.
The plant has rapidly and successfully made the transition from
a construction project to a stable production operation with a
robust framework of people, processes, systems and
organisation, and relentless focus on operational excellence
and continuous improvement. In addition to regular
maintenance of the assets to assure integrity and reliability,
opportunities are continuously sought to debottleneck the
plant, incorporating proven techniques and processes to
maximise production, and manage human interferences and
impacts. The plant has also embarked on a structured
programme of asset rejuvenation to extend the plant life
beyond the current design life. All these activities are
underpinned by an excellent Health, Safety, Security and
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 23
Environment (HSSE) culture that continually seeks improvements
in the safe and sustainable utilisation of our assets.
The plant continues to rank amongst the biggest and top
performers worldwide; its performance is regularly
benchmarked internationally with other LNG plants around the
world.
NLNG has, within a short span of time, grown in status to
become a very reliable supplier of LNG in the Atlantic Basin,
serving the European, South American and Far East markets.
The Plant is built on 2.27 sq.km of largely reclaimed land in
Finima, Bonny Island. The main elements of the facilities
already in operation are:
l Diversified gas supply (Associated Gas and Non-
Associated Gas) and six main dedicated gas transmission
pipelines with four of them located on-shore.
l Six LNG processing units (trains) with a total nameplate
processing capacity of 22 mtpa.
l Four LNG storage tanks, each with a capacity of 84,200
cubic metres.
l Four LPG refrigerated storage tanks, each with a capacity
of 65,000 cubic metres (two each for propane and
butane).
l Three Condensate storage tanks, each with a capacity of
36,000 cubic metres.
l A common fractionation plant to process LPG.
l A common condensate stabilisation plant.
l 10 gas turbine electricity generators with a combined
capacity of more than 320 MW.
l Two LNG export jetties, one of which also exports LPG
while the other also exports Condensate, with a combined
capacity of more than 400 loadings per year.
l 24 LNG ships dedicated to the service of NLNG.
l A materials off-loading jetty.
l A passenger jetty/terminal.
l A Residential Area (RA) covering an area of more than two
sq.km.
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Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 25
NLNG: Major Milestones
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Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 27
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NLNG AND ITS CONTRIBUTIONS TO THE NIGERIAN ECONOMYWith the incorporation of Nigeria LNG Limited (NLNG) on
17th May 1989, the LNG industry in Nigeria was born. It is
successfully harnessing associated gas volumes which would
otherwise have been flared. It is now also considered one of
the most important economic projects in Nigeria. NLNG has
already generated significant revenues for the nation.
Environmental Hazard ReductionNLNG has converted about 133 Bcm (billion standard cubic
metres) or 4.68 Tcf (trillion cubic feet) of Associated Gas (AG)
to exports as LNG and Natural Gas Liquids (NGLs), thus
helping to reduce gas flaring by upstream companies. Flares
are only permitted in order to eliminate waste gas which
cannot be converted to any further use. Flares also act as
safety systems for non-waste gas and are released via pressure
relief valves, when required, to ease the strain on equipment.
Monetization of GasNLNG utilizes gas that would otherwise be flared, thus making
significant contributions to the nation's income while helping to
protect the environment. Payment to Joint Venture (JV) feedgas
suppliers from inception till date is almost USD21 billion; 55-
60 per cent of this amount goes to the Federal Government of
Nigeria via its shareholding in Nigerian National Petroleum
Corporation, NNPC.
NLNG has also over the years paid dividends of almost
USD30 billion, out of which 49 per cent went to the Federal
Government of Nigeria courtesy of its shareholding in the
company, again via Nigerian National Petroleum Corporation,
NNPC.
As a good corporate citizen, NLNG also contributes to
national wealth and economic wellbeing of states in which it
operates, by paying all applicable taxes and tariffs. In 2014,
the company's corporate income tax amounted to about N220
billion, thus making NLNG by far the highest tax payer in
Nigeria and Sub-Sahara Africa.
Foreign Direct Investment (FDI)With its plant construction, the company generated
considerable Foreign Direct Investment (FDI) for the country.
The project today has assets (i.e. property, plant and
equipment) worth over USD14 billion financed mainly by
NLNG’s shareholders, with 51 per cent stake by International
Oil Companies and 49 per cent belonging to the country
through the Nigerian National Petroleum Corporation, NNPC.
Gross Domestic Product (GDP)The company, since 2008, contributed about four per cent of
Nigeria's annual Gross Domestic Product (GDP) and with
current rebasing of the GDP, NLNG's contribution to the GDP
is put at about one per cent.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 29
Job Creation
Nigeria LNG (NLNG) Limited provided more than 2,000 jobs
each construction year. Overall, the major sub-contractors
employed about 18,000 Nigerians in technical jobs in the
Base Project.
Through each Nigerian Content plan for its contracts, NLNG has
promoted the development and employment of Nigerian
manpower. For instance, 600 Nigerians will be trained in
Nigeria and at the contractors' (Hyundai and Samsung)
shipyards in Korea as part of the Nigerian Content deliverables
tied to the construction of six new LNG vessels by Bonny Gas
Transport (BGT), a wholly owned subsidiary of NLNG.
Those 600 Nigerians, with enhanced skills in welding, hull
assembly, pipe fitting, electrical, mechanical, painting and ship
design will join the country's workforce, providing a support base
for technology transfer and industrialization.
Thirty-five of the Nigerian trainees are currently in Korea for
participation in the ship construction and six Nigerians are
already working as ship managers (two Production Managers,
two QA/QC Managers and two HSE Managers) in the ship
construction at the shipyards in Korea.
Local Content Development
NLNG supports the development of community and Nigerian
contractors to enable them achieve standards of excellence.
In our host community, through the initiative to empower local
contractors via the Finima Legacy Project, local contractors
have made capital investments in their companies thereby
expanding their operating capacity. The capabilities of local
vendors have also been developed through mentoring and
engineering of partnerships between the more established
Nigerian vendors and the community vendors.
NLNG's shipping subsidiary, Bonny Gas Transport (BGT)
recently ordered for six new Dual Fuel Diesel Engine (DFDE)
LNG carriers. The carriers are currently under construction in
South Korea by Hyundai Heavy Industries (two ships) and
Samsung Heavy Industries (four ships).
The Nigerian Content commitment in the project, which is
defined in a Memorandum of Agreement between NLNG/BGT
and the shipyards (Hyundai Heavy Industries and Samsung
Heavy Industries) includes major initiatives such as the training
and development of Nigerians (both in Nigeria and Korea) in
various aspects of ship design and construction, the supply of
materials such as paints, cables, anodes and furniture by
Nigerian suppliers for the construction of the vessels, and
feasibility study on the establishment of the first LNG ship dry-
docking and ship repair yard in Nigeria.
Consequently, Berger Paints and Paints and Coatings MN have
produced and exported over 350,000 litres of paints; Nexans
Kabelmetal has shipped over 130,000 metres of low voltage
(LV) cables and METEC West Africa has exported over 9000
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 530
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 31
pieces of Aluminium and Zinc sacrificial anodes – all to the
ship yards in South Korea for use in the newbuild vessels.
METEC West Africa and Nexans Kabelmetal through NLNG's
Nigerian Content initiatives have also undergone international
class certification and inspection for the manufacture and
supply of sacrificial anodes and low voltage (LV) cables
respectively to meet the requirements of marine applications.
Berger Paints PLC has increased its portfolio of paints and
manufacture to international standards, having installed state-
of-the-art laboratory equipment and acquired additional
production equipment. Paints and Coatings Manufacturers
Nigeria PLC (PCMN) has acquired additional mixers and
laboratory equipment and gone ahead to become the first
company in Africa to receive the Inter Marine Organisation's
Intershield 300 Ballast Tank Coating certification. Holborn
Nigeria Limited developed capacity to manufacture 12 inch
(30mm) diameter High Density Polyethylene (HDPE) pipes
which had hitherto not been manufactured in the country.
Furthermore, deliberate technology transfer initiative has
enabled Waste Pipe & Drainages (WPD) to safely and
successfully complete the change out of all nominated
compressed air dryer bed desiccants in U-4700 (14 vessels in
total). This makes WPD the second Nigerian contractor with
this level of proficiency that can compete with the previous sole
contractor (CAKASA) in LNG Trains molesieve bed change out
activity.
Ship Dry Dock and Repair Yard
Nigeria LNG Limited (NLNG) in partnership with Hyundai
Heavy Industries (HHI) and Samsung Heavy Industries (SHI),
reached out to the investment community on 9th December,
2014 in Lagos, to promote the development of a ship repair
and maintenance yard in Nigeria - Badagry Ship Repair and
Marine Engineering Limited (BSME) - that will be sited at
Badagry after feasibility studies were carried out at various
sites (Onne, Bonny, Olokola, Badagry, Ogogoro Island, Ladol,
etc.). Currently, a Special Purpose Vehicle (SPV)that will
manage the development of Badagry Ship Repair and Marine
Engineering Limited (BSME) is being put together.
BSME will bridge the gap created by the absence of an
operational dockyard to cater for the repair and maintenance
of Very Large Crude Carriers (VLCC), LNG carriers, large and
medium size carriers, drilling Rigs and supports vessels. This is
one of the Nigerian Content deliverables on the BGT Plus
project.
Community Development
In our host communities, especially Bonny, housing, catering
and transportation enjoyed a boom as a result of huge capital
inflow into the economy during NLNG's construction phase. A
number of industries were also attracted to the Island, notable
among which were banking and joint venture companies in
equipment and spare parts manufacturing. This is in addition
to the over N25 billion NLNG has expended on community
Also see the segment on Nigerian Content beginning from page 62.
Also see the segment on Nigerian Content beginning from page 62.
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Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 33
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 534
projects over the years. NLNG's host and pipeline communities
have enjoyed amenities from NLNG such as roads, hospitals,
schools, and supply of learning aids, among others.
Nigeria LNG Limited currently provides uninterrupted power to
the inhabitants and businesses on Bonny Island through a rural
electrification project managed by the Bonny Utility Company
(BUC). BUC is an initiative of NLNG-led Joint Industry
Companies (JIC) which also includes water supply to the
Island.
BUC has provided Bonny communities over 98 percent
uninterrupted power supply since its inception, with per capita
electricity consumption increasing from under 250 kWh per
year in 2002 to over 960 kWh per year in 2014. Currently,
BUC serves 11,700 households, essentially covering the entire
island via its distribution network.
The benefits have been tremendous. Public services perform
better, businesses flourish because machinery and computers
can be utilised during the entire day, and residential users
experience higher comfort levels. The flourishing businesses, in
turn, generate jobs for the indigenes.
Domestic LPG Supply
NLNG commenced the supply of Liquefied Petroleum Gas
(LPG) otherwise known as cooking gas to the domestic market
in 2007 when refineries became challenged and supply was
grossly inadequate. Since then, the issue of inadequate supply
has become a thing of the past.
The intervention, which is in line with company's vision of
helping to build a better Nigeria, has significantly contributed
to the stimulation and development of the domestic LPG market
in Nigeria and has effectively brought down the price of
cooking gas from over N7,000 in 2007 to less than N3,500
per 12.5kg cylinder today.
NLNG is committed to delivering 250,000 tonnes of LPG into
the Nigerian market annually and has signed Sales and
Purchase Agreements (SPAs) with fifteen off-takers (all Nigerian
companies) for the lifting of LPG for the domestic market.
Nigerianisation
NLNG and its shareholders agreed on a Nigerianisation
scheme on September 1, 1997. This was revisited and updated
in 2004. The objective of the scheme which was to Nigeranise
the company's workforce was achieved in 2012. It started by
recruiting Higher National Diploma graduates and training
them as technicians and operators. This is a deliberate policy
to enable the relatively young minds imbibe the skills, work
culture, discipline and professionalism that the business
requires. NLNG also instituted a staff training and
development drive for different cadres of technical staff to help
them acquire the requisite skills and competence for
management, supervisory and operational positions in the
For more information, see Community Relations and Development beginning
from page 77.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 35
company. The company continues to recruit young engineers
and other technical staff, as part of this initiative.
Increased Shipping/Marine Human Resources
With the incorporation of its first subsidiary, Bonny Gas
Transport (BGT), in 1989, the LNG shipping industry in
Nigeria was born. Currently, NLNG, through NLNG Ship
Management Limited (NSML), another of its subsidiaries, is the
biggest employer of Nigerian seafarers on board its 13 NLNG
directly-owned carrier ships. NLNG has trained hundreds of
sea-going officers, some to the level of Captains and Chief
Engineers.
Corporate Social Responsibility
Nigeria LNG Limited also promotes the sciences and arts
through its sponsorship of The Nigeria Prize for Science and
The Nigeria Prize for Literature, one of the most prestigious
awards for excellence in science and literature in Africa, each
worth USD100,000 in prize money. The company has added
a new prize for literary criticism worth N1 million in prize
money, to complement the existing literature prize.
Indeed, education is a special focus area for NLNG. The
company in May 2014 signed a Memorandum of
Understanding with six Nigerian universities for the
development of engineering education with USD12 million.
Under this initiative, NLNG has committed to spend USD2
million on each of the participating universities for construction
of modern engineering laboratories and procurement of
cutting-edge engineering equipment to aid teaching and
research. The beneficiary universities, spread across the six
geo-political zones, are University of Ibadan, University of
llorin, University of Pori Harcourt, University of Maiduguri,
Ahmadu Bello University, and University of Nigeria, Nsukka.
The project implementation commenced in October, 2014 and
is expected to be delivered in 2015.
The company promotes acquisition of vocational skills through
funding of the Bonny Vocational Centre (BVC). BVC is the only
accredited City & Guilds Centre in Nigeria. It empowers
youths with appropriate vocational skills that will make them
gainfully employed and capable of contributing meaningfully
to the development of themselves and the society.
The centre prides itself on its ability to help secure employment
for its graduates. At the moment, 107 BVC graduates are in full
time employment; 109 are in work placement (as interns) while
16 are in Samsung and Hyundai shipyards in Korea.
Vendor Finance Scheme
NLNG recognises the fact that funding is the bane of the
Nigerian manufacturing industry. This led to the introduction of
USD 1 billion NLNG Local Vendors Financing Scheme (NLVFS)
which facilitates access to funds from participating banks by
NLNG-registered vendors (suppliers of goods or contractors of
services). This way, vendors get speedy access to finance for
their contracts, or procurement orders, at competitive rates.
Over N200 million and over USD20 million have been
disbursed to NLNG vendors.
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Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 37
GAS SUPPLYNigeria is blessed with abundant reserves of associated and
non-associated gas estimated to be in excess of 180 Trillion
(standard) cubic feet (Tcf).
The country is ranked ninth in terms of proven natural gas
reserves in the world. The natural gas reserves are estimated to
be sufficient to sustain current production rates for over 60
years.
Geologists believe that there is a lot more gas to be found
(potentially up to 600Tcf), if companies deliberately explore for
gas, as opposed to finding it while in search of oil.
The government aims to eliminate all flaring of gas associated
with the production of oil, and NLNG continues to play a
significant part in this. In the period 1999-2013, NLNG has
converted 133Bcm (Billion standard cubic meters) or 4.68Tcf
of Associated Gas (AG) to export products (equivalent to more
than 1630 LNG and NGL cargoes) which otherwise would
have been flared.
With further improvement in the collection of associated gas,
NLNG with its 6-Train LNG/NGL complex will reduce
upstream flaring in Nigeria even further.
Other demands on the use of Nigeria's gas are for domestic
power generation, domestic utilities and industries, as well as
export, NGL and gas projects such as the West African Gas
Pipeline Company Limited (WAGPCo) and, potentially, future
LNG projects.
The NLNG six-train complex is the biggest gas consumer and
exporter in Nigeria with its current daily consumption of almost
3.5 bcfd, equivalent to the total daily consumption of
industrialized countries like the Netherlands.
Gas Supply Agreements
Nigeria LNG Limited has long term Gas Supply Agreements
(GSAs) with three Joint Ventures (JVs) for the supply of natural
gas (feed gas) to the plant. These JVs are Shell Petroleum
Gas Production and Utilisation in Nigeria
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 538
Development Company of Nigeria Limited (SPDC), Total
Exploration & Production Nigeria (TEPNG) and Nigerian Agip
Oil Company Limited (NAOC).
Legend:
* - Operator
NNPC - Nigerian National Petroleum Corporation
SPDC - Shell Petroleum Development Company of
Nigeria Limited (Shell Affiliate)
NAOC - Nigerian Agip Oil Company Limited (Eni affiliate)
EPNL - Total Exploration Production Nigeria (Total Affiliate)
Feedgas
Feedgas is produced by the JVs from various concession areas
in the Niger Delta – from onshore and offshore fields – and
supplied to NLNG under a long term Gas Supply Agreement
with each JV. The agreements ensure efficient gas supply to the
plant throughout the life of the projects. SPDC-JV is currently
supplying feedgas from a number of fields including Gbaran
Ubie (with a capacity of 1.2 Bcf/d, which started-up in June
2010), Soku, Bonny (on-shore), Bonga, and EA (off-shore)
supply facilities, each receiving gas from a wide range of oil
and gas fields.
Additionally, under a special supply arrangement with the
SPDC-JV, an indigenous marginal field concessionaire/
operator – Niger Delta Petroleum Resources (NDPR) –
commenced natural gas supply to NLNG in November 2012
from its Ogbelle-Obumeze oil and gas process facilities. At
35mmcf/d, it currently supplies 1% of NLNG daily feedstock
with potential to grow to 100mmscf/d.
The NAOC-JV supplies gas to NLNG from its Obiafu-Obrikom
(OB-OB) Integrated Gas Supply centre which receives gas from
a wide range of fields including Idu, Akri, Kwale, Irri, Oshie,
Tebidaba and Ebocha oil and gas fields.
The TEPNG-JV derives gas supplied to the plant from the on-
shore Obite, Ibewa and Obagi fields. Additionally, natural gas
rich in liquids is supplied to NLNG from its off-shore Amenam
and Akpo platforms. Recently in December 2014, TEPNG
commissioned delivery of some 35 to 40mmscf/d of
associated gas from its Ofon project through its Amenam
offshore plant as part of its flare reduction strategy. Currently,
TEPNG is completing a project to increase its supply capacity
from Obite Gas Plant. A related 42-inch diameter gas
transmission pipeline is also in project completion phase, to
bring the additional gas from Obite Plant to NLNG.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 39
At present, with six trains in full operation, the total gas
requirement of the company's Bonny Island natural gas
liquefaction plant is about 3500 mmscf/d (3.5 Bcf/d).
Gas is transmitted to the NLNG complex through six
independent Gas Transmission Systems (GTS). GTS-1, -2, -4
and Bonny Non Associated Gas (BNAG) piping systems are
on-shore, while GTS-3 and -5 are off-shore lines.
COMMERCIAL Marketing and Sales Administration
Since October 1999 when the first LNG cargo was loaded for
delivery to Montoir Terminal in France, NLNG has maintained
its reputation as a safe, reliable and secure supplier of
Liquefied Natural Gas and Natural Gas Liquids (Condensates
and LPG) worldwide. With a six-train complex of 22 mtpa
LNG nameplate production capacity and 5 mtpa NGLs
production capacity, NLNG now has the capacity to load and
safely deliver over 300 cargoes of its products annually.
LNG Contracts
NLNG currently manages 16 long term LNG Sales Purchase
Agreements (SPAs) executed with 11 buyers on a Delivered Ex-
Ship (DES) basis. These buyers include Enel, Gas Natural,
Botas, GDF Suez, GALP Gas Natural, BG LNG, Endesa, ENI,
Iberdrola, Shell International Trading Middle East Ltd and Total
Gas and Power Ltd.
The Long Term LNG buyers take delivery of their volumes at
receiving facilities spread across the Atlantic Basin in countries
such as Spain, France, Portugal and Italy in Europe, Turkey,
Mexico and the United States of America.
In recent times, NLNG cargoes have been delivered to the Far
East, Middle East, South America and the United Kingdom
through existing customers and via spot Master FOB
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 540
agreements with several companies. Volumes have been
delivered to receiving facilities in Japan, South Korea, Taiwan,
China, India, Kuwait, Brazil and Argentina. This has positioned
the company as a major player in the global gas/LNG
industry.
NLNG has also executed over 38 Spot Free on Board (FOB)
LNG Master Sales Agreements with various companies located
across major LNG markets, enabling the sales of excess
production volumes to the spot market.
Natural Gas Liquids (NGLs)
Natural Gas Liquids, comprised of high quality Liquefied
Petroleum Gas (LPG) and Condensate (Natural Gasoline), are
by-products of the natural gas liquefaction process. NLNG
currently produces in excess of 1.5 and 1.0 million tonnes per
annum respectively of Condensates and LPG. Both the LPG
(Propane & Butane) and Condensate are currently sold for
export on a Free on Board (FOB) basis to prequalified
companies and NLNG shareholders for export via competitive
tender and price matching processes respectively.
Domestic LPG Supply
In response to chronic supply shortages of LPG for domestic
consumption, NLNG commenced supply of LPG to the
Nigerian domestic market in 2007. The first NLNG LPG cargo
into the domestic market was discharged at Apapa jetty on
December 26, 2007.
To facilitate the Domestic LPG Supply Scheme, NLNG executed
Sales and Purchase Agreements (SPAs) with 15 off-takers (all
Nigerian companies). In line with our commitment to ensure
reliability of supply into the domestic LPG market thus helping
to grow the market, NLNG committed to make available up to
250,000 tonnes of LPG for the Nigerian market annually.
The Domestic LPG Supply Scheme is based on a Delivered Ex
Ship (DES) model with LPG delivered to the market via a
dedicated NLNG-chartered LPG tanker. Since inception of the
scheme in 2007 NLNG has supplied over 650,000 tonnes of
LPG.
The LPG Domestic Supply Scheme, which has been an
outstanding success, has led to a significant reduction in the
end-user price of LPG in the domestic market.
In The Future
NLNG, which currently delivers about 7% of the global LNG
supply, will continue to consolidate its position as one of the
largest producers and exporters of LNG in the world, thus
maintaining its position as a major, strategic and reliable
supplier of LNG and NGLs.
NLNG's 8.4mtpa Train 7 project, which will raise the
liquefaction capacity to 30.4mtpa, is now awaiting Final
Investment Decision (FID). SPAs have already been executed
with five buyers.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 41
OFF-TAKERS CHART
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EMERGING MARKETSHISTORICAL MARKETS
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 43
SHIPPINGNLNG has a total of 23 LNG vessels on long-term charter for
its six-train operation, and one domestic LPG vessel. All 23
LNG vessels are utilised on an integrated scheduling basis.
They load at NLNG’s Terminal in Bonny, Nigeria, for ex-ship
deliveries to buyers in Middle East, Asia, Europe, South
America, and Gulf of Mexico (GOM) including ports in
Mexico and the United States. The LPG vessel is utilized for
LPG delivery in the Nigerian market.
The ownership structure of the ships is as follows:
Bonny Gas Transport (BGT) 13 (Four membrane and nine
Moss carriers)
BW Gas 8 (All membrane carriers)
Nippon Yusen Kaisha (NYK) 2 (All membrane carriers)
Operational and Technical Management
of the Fleet Vessels
l Ten BGT vessels are managed and operated by NLNG
Ship Management Limited (NSML)
l Three BGT vessels are managed and operated by Shell
International Trading & Shipping Company Ltd (STASCo)
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 544
l Eight BW Gas vessels are managed and operated by BW
Gas
l Two Nippon Yusen Kaisha (NYK) vessels are managed and
operated by NYK
In 2014, five additional vessels were chartered on an ad hoc,
single voyage basis: Soyo from Angola LNG, Corcovado LNG
from Oceanus LNG, Lobito from Angola LNG, Sonangol
Benguela from Angola LNG and Cool Voyager from Energy
Shipping. All five vessels were redelivered to owners on
completion of their single voyage in 2014. Additional two
Dual Fuel Diesel Engines (DFDE) vessels, Golar Frost and Golar
Crystal, were chartered from Golar LNG for one year charter
period in January 2015.
NLNG also has one vessel, Stena Clear Sky, under medium-
term charter. The vessel was chartered for a term of three years
in 2012, and will be redelivered to her owner in March 2015.
In addition to our traditional deliveries to Europe and the US,
NLNG also supplies LNG to South America, with deliveries to
Mexico and Brazil; and to Asia and the Middle East, with
deliveries to Japan, South Korea, India, China, Taiwan,
Thailand and Kuwait.
Ship Management Knowledge Transfer Project
(SMKTP)
NLNG reached an agreement on Ship Management
Knowledge Transfer Project (SMKTP) with Shell International
Trading and Shipping Company Limited (STASCo) in 2008,
and the project was successfully completed in 2014.
The project achieved milestones which included the birth of
NLNG Ship Management Services (NLNGSS), a ship
management department in NLNG, and the consequent
phased take-over of the management of BGT vessels by
NLNGSS, which has since been integrated with NLNG Ship
Management Limited (NSML).
Between July 2011 and July 2013, NLNGSS (now part of
NSML) took over management of six BGT-owned vessels which
were previously managed by STASCo, and four BGT-owned
vessels which were previously managed by Anglo Eastern UK
Limited (AEUK), thereby taking over management of ten BGT-
owned vessels.
The integration of NLNGSS with NSML commenced in January
2014. By June 2014, NSML was granted a Document of
Compliance (DOC) to operate and manage vessels, and by
October of the same year, the management changeover of ten
BGT-owned vessels from NLNGSS to NSML was completed.
The integration of NLNGSS with NSML was completed in
December 2014 with the relocation of that ship management
arm of NSML to NSML office in Port Harcourt, Nigeria. This
relocation also marked the completion of the final milestone in
the SMKTP agreement. All Post-DOC services (office space,
Procurement, IT and Emergency Response) previously provided
by STASCo are now being fully carried out by NSML staff in
Port Harcourt.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 45
With the SMKTP milestones now all successfully attained,
NLNG continues to increase ship management capacity
through continuous training and development.
Ship-Management Knowledge Transfer Project for
Acquisition of Competency in DFDE LNG Carriers
(SMKTAPlus)
Following an Economic Replacement Assessment (ERA) study
on the older BGT vessels, Board approved a fleet renewal and
optimization program. Consequently, BGT is currently building
six Dual Fuel Diesel Engine (DFDE) LNG carriers in South
Korea under the BGT Plus Project. Four of the vessels will
replace six older vessels while two are aimed at fleet
optimization to meet NLNG's appetite for more tonnage.
NLNG staff were involved in the design and plan approval
stage of the BGT Plus vessels at the Shipping Adviser's office in
Maldon, UK, and are now at the designated shipyards in
South Korea for active participation in construction supervision
during the construction phase of the project.
Training of Nigerians in the acquisition of DFDE experience
commenced in 2014, and will include cross-posting to
companies currently managing this class of vessels, shipboard
experience on board DFDE vessels, and deployment to
shipyards. The Nigerian Content commitment in the BGT Plus
Project, which is defined in a Memorandum of Agreement
between NLNG/BGT and the shipyards (Hyundai Heavy
Industries and Samsung Heavy Industries) includes major
initiatives such as the training and development of Nigerians
(both in Nigeria and Korea) in various aspects of ship design
and construction, the supply of materials such as paints,
cables, anodes and furniture by Nigerian suppliers for the
construction of the vessels, and feasibility study on the
establishment of the first LNG ship dry-docking and ship-repair
yard in Nigeria. This has witnessed success with achievement
of set milestones.
NLNG Operational Shipping Performance
2011 – 2014
Shipping Safety Record
Continuous improvement of HSE and operational performance
of each ship in the fleet is important to BGT and NLNG, and is
subject to continuous review.
Each ship in the fleet is continuously monitored and
benchmarked against LNG industry standards. This is done
through:
l Application and adherence to NLNG HSE Policy and
Procedures
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 546
l Biannual Fleet Managers' HSSE workshop to discuss and
exchange best practice and HSSE improvement
l Quarterly Marine Contractors HSSE Managers' Workshop
to build commitment towards improving safety on board
marine crafts that support the operation of the vessels at
Bonny
l Shipboard Audit Programme and Safety Management
Systems
l Continuous implementation and improvement of HSE
initiatives
l Independent LNG Shipping Performance Benchmarking
Programme
l Implementation of Behavioural Based Safety (BBS)
programmes to continually improve the safety culture
onboard
l Analysis and sharing of incident report recommendations
across the Fleet in a process called Learning from Incidents
(LFI)
l Continuous engagement with Fleet Managers for improved
performance
l Ship Management Assurance Review (SMAR) Audit which
involves sailing with the vessel.
l Quarterly HSSE newsletter to demonstrate commitment and
share learnings
l Monitoring and implementation of applicable local and
international regulations
l Worksite Hazard Management Programme
The application and enforcement of the above initiatives have
resulted in downward trend in Fleet *TRCF from 2011 to 2014
as shown below.
*TRCF – Total number of recordable cases expressed as a frequency in relation to
fleet-wide exposure hours.
*LTIF – Total number of Lost Time Injuries expressed as a frequency in relation to fleet-
wide exposure hours.
Shipping and Marine Quality Assurance
NLNG, through the Shipping Assurance and Compliance
Department (SDA), ensures that each segment of the entire NLNG
shipping and marine business operations complies with best
industry practice and international standards.
In line with NLNG Vessel Quality Assurance Policy, all vessels
and terminals used for NLNG business are vetted using a
combination of inspections, assessments and due diligence
reviews prior to being used. These activities, including a number
of Oil Company International Marine Forum (OCIMF) accredited
Ship Inspection Report (SIRE) inspections, are conducted in line
with industry best practice.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 47
To this end, NLNG has been admitted into the Oil Companies
International Marine Forum (OCIMF), an organisation with the
mission to be the foremost authority on safe and
environmentally responsible operation of tankers and terminals
and to promote continuous improvement in standards of design
and operation. NLNG is represented in the OCIMF key
committees including General Purposes Committee (GPC),
Ports and Terminals Committee (PTC), Gulf of Guinea Piracy
Focal Group (PGoG) and recently elected into the SIRE Focus
Group (SFG).
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SHIP MANNING
NLNG Ship Management Limited (NSML) was set up in
response to rapid changes and challenges in the maritime
business and the scarcity of ship board personnel worldwide,
to deliver on NLNG's strategic plan to have a shipping
management service, supported by a dedicated manning
company to develop and supply qualified and competent
shipboard personnel on board its ships. A subsidiary of
NLNG, NSML is charged with the rapid development of
Nigerian shipboard personnel in line with international
standards and practices.
The establishment of NSML is also in furtherance of NLNG's
Nigerianisation policy which is in sync with the Federal
Government's local content drive.
NSML has continued to implement the Nigerianisation Plan
with regard to BGT vessels. Since its commencement, the
shipboard officers' Nigerianisation policy has produced six
captains and four chief engineers.
From 2001 to 2014, a total of 240 cadets have completed
their cadetship training programme in UK maritime colleges.
As part of their training, all cadets go on board BGT vessels
for practical experience; this is aimed at instilling early in them
the discipline required for successful career at sea, and at
meeting competency certification requirements. Engineering
Cadets and Junior Engineering Officers are also being trained
to obtain qualifications in motor ships as well as the existing
steam ships, to allow NSML to meet the additional challenges
and requirements of the new-build DFDE ships. By the end of
2014, NSML had trained 25 engineering officers who now
have dual certification.
In 2014, 13 cadets completed their-three year cadetship and
are now serving on BGT vessels as officers.
NSML currently has 194 Nigerian officers in its employ and
independently manages the deployment and training of all
officers and cadets. Because we do not have many Nigerians
in the senior officer ranks yet, in 2013, with Board approval,
NSML started recruiting foreign senior officers to allow the
Manning Agreement with AESM to run down. By the end of
2014 NSML had employed forty-three such officers. NSML
continues the direct employment and management of Ratings
as approved by the NSML Board of Directors, for BGT. The
company presently has 364 Ratings in its employment and this
number is expected to increase to 385 by end of 2015.
NLNG continues to support the Nigerian Maritime Academy,
Oron, to train manpower for the industry. Fourteen NSML
Ratings were sponsored to the Basic Mandatory STCW
Training at Maritime Academy of Nigeria, Oron in 2014.
For more information, see Nigerian Content, from pages 62 – 66.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 554
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FINANCINGTHE TRAINS
Trains 1 & 2 (Base Project)
The Base Project (Trains 1 & 2), which cost USD3.6 billion,
was financed by NLNG's shareholders.
Train 3 (Expansion Project)
NLNG's third train (Expansion Project), including additional
tankage, cost USD1.8 billion. The financing was carried out in
a manner similar to that of the Base Project. Besides the new
equity injection by the shareholders, revenue and surpluses
from the Base Project were re-invested in the Expansion Project.
Much of the cost of the new LNG tankers was borne by third
party financiers. When this loan was secured in 2002, the
amount represented the single largest lending to an industrial
complex in sub-Saharan Africa at the time.
Trains 4 & 5 (NLNGPlus Project)
Excluding ship acquisition, the cost for NLNGPlus project
(Trains 4 & 5) was USD2.2 billion. This was funded with a
combination of internally generated revenue and third party
loans amounting to USD1.06 billion.
The third party loans comprised of four Export Credit Agency
(ECA) guaranteed international commercial bank loans
totalling USD620 million, an uncovered international bank
loan of USD180 million, an uncovered Nigerian commercial
bank loan of USD160 million and an African Development
Bank facility of USD100 million. The ECAs, namely US EXIM,
ECGD, SACE and Gerling NCM, provided guarantees to a
group of 19 international banks led by BNP Paribas,
Citigroup, Credit Lyonnais, MCC and West LB. The ECA-
backed facilities as well as the African Development Bank
facility had eight year tenure. The facilities have been fully
repaid as at 15 December 2010, with a USD20 million short-
term 'place holder' financing remaining in place.
The financial discipline and character demonstrated by NLNG
in abiding by the loan covenants, terms and conditions
throughout the tenure has significantly increased the appetite
of international lenders for financing opportunities involving the
company.
Train 6
Final Investment Decision (FID) for NLNGSix was taken in July
2004 for the sum of USD1,748 million. Train 6 was principally
financed from internally generated funds. Start-Up was
December 14, 2007 and production commenced on 23rd
December 2007. The train is up and running.
THE SHIPS
Trains 1 & 2 (Base Project)
In 1990, the company raised a third party loan of USD132
million through Citibank to buy four ships for the Base Project.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 57
The ships, built for another company but not put to use, were
refurbished and put into interim business until the plant began
operations.
Train 3 (Expansion Project)
Following the Third Train Expansion, three vessels were
acquired by BGT. Their construction was partly funded with
third party financing, viz:
l LNG Rivers and LNG Sokoto were financed with USD160
million syndicated loan which was signed on December
20, 1999. Credit-Suisse First Boston was the lead arranger
for this facility for which repayment started in 2002
following the delivery of the second vessel.
l The third external debt in connection with BGT fleet was
the loan inherited from the acquisition of two ex-Lachmar
ships (LNG Edo and LNG Abuja) from NLNG on August
1, 2001 when the outstanding debt stood at USD210
million.
l In September 2001, another syndicated bank loan for
USD100 million was arranged to assist with the
construction of LNG Bayelsa. Again, Credit-Suisse First
Boston played the lead role. The vessel was delivered in
February 2003.
Trains 4 & 5 (NLNGPlus Project)
Hyundai Industries and Daewoo Shipyard built the eight
additional ships needed for NLNGPlus project. Of the eight
vessels, BGT owns four while others were chartered from
Bergesen d.y. of Norway. BGT raised USD460 million in
March 2003 to partly fund the construction of the vessels.
This facility was arranged by ABN AMRO Bank, Credit
Lyonnais, Fortis, ING Bank, HVB, Verein und Westbank and
West LB. The balance of USD282 million came from internally
generated revenue and shareholders' funds.
BGT refinanced all the foregoing third party facilities in 2006
with a USD680 million facility through Standard Chartered
Bank. This is secured against the 13 vessels in BGT's fleet.
Train 6
Following the signing of NLNG Train 6 Final Investment
Decision (FID), six LNG vessels were built and delivered at a
combined cost of USD957 million on long term charter to
NLNG.
The vessels were built at Daewoo Shipyard and Samsung
Shipyard in South Korea. Four of the vessels were chartered
from BW GAS Asa of Norway and two from NYK LNG
(Atlantic) Ltd of Japan.
Expanded Business
Production from the six train plant approaches name-plate
capacity and LNG is now delivered in more distant
destinations, in response to changing business opportunities.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 558
As a result, additional shipping capacity has become
necessary. Bonny Gas Transport is having six new vessels
constructed by Hyundai Heavy Industries (two ships) and
Samsung Heavy Industries (four ships); these will be completed
in 2016.
Financing for the six vessels has been arranged in two
programmes: a USD310 million six-year Additional
Programme Debt (APD) facility and a USD 1,100 million
twelve-year New Vessel Debt (NVD) facility. The APD is
additional indebtedness under 2006 vessel financing
arrangement, while the NVD is a fresh facility with several
international commercial banks and Export Credit Agencies as
lenders, including Korean Export-lmport Bank (KEXIM), and the
Korean Trade Insurance Corporation (K- SURE). The deals were
signed off on March 26, 2013.
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Fa c t s a n d F i g u r e s o n N L N G 2 0 1 560
NIGERIAN CONTENTNLNG and Nigerian Content
Nigeria LNG Limited considers Nigerian Content – a
deliberate, conscientious use and development of Nigerian
human and material resources and services – an important
feature of all its activities.
All approved Nigerian Content Plans are aimed at attaining
maximum achievable Nigerian Content deliverables in related
activities, the ultimate goal being to achieve the targets set in
the Nigerian Oil and Gas Industry Content Development Act
(NOGICD) 2010. By embedding the requirements of the
NOGICD Act 2010 in all its contracting and procurement
processes, the company has enshrined Nigerian Content as a
key deliverable.
NLNG's commitment to the Nigerian Content Act is expressed
through its policy geared towards:
(i) Development of sustainable value-adding relationships with
local companies that result in job creation and
domestication of previously exported value.
(ii) Enhancement of local/indigenous production capability
through deliberate targeted interventions.
(iii) Encouragement of knowledge and technology transfer
achievable within its projects, contracts and procurement
activities.
(iv)�Training, development and employment of Nigerian human
resources
The company's performance on Nigerian Content is governed
by a committee of NLNG Board of Directors and Senior
Management Team. Consequently, through contracts,
procurements and projects tied to the six trains currently in
operation and continuous sponsorship of various community
projects, ample opportunities have been provided for Nigerian
companies and contractors to provide services and supply
goods to the company whilst their capabilities to compete on
an international scale are being enhanced.
Nigerian and Community Vendor Development
In a proactive bid to discover more Nigerian sources, Nigerian
Content surveys and vendor forums are conducted at
scheduled intervals to identify indigenous companies capable
of providing the goods and services required by NLNG.
Below are some laudable achievements in this regard.
l Through NLNG's initiative to empower local contractors via
the Finima Legacy Project, five local contractors have made
capital investments in their companies thereby expanding
their operating capacity.
l Strategic partnerships between the more established
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 61
l Strategic partnerships between the more established
Nigerian vendors and the community vendors, as in the
case of SJ Abed and Vikal Nigeria Enterprise.
l Fifty-four vendors from the community were trained at the
Bonny Vocational Centre to improve their skills in project
management and in responding to enquiries and bids.
l NLNG’s deliberate strategies implemented to increase
spend in the community have seen a significant increase in
spend year on year with direct spend increasing by over
100% between 2011 and 2013 and a further increase in
2014.
Shipping
A key initiative in shipping was the contract award by Bonny
Gas Transport (BGT), a wholly owned subsidiary of NLNG, to
construct six new Dual Fuel Diesel Engine (DFDE) LNG carriers
– four by Samsung Heavy Industries (SHI) and two by Hyundai
Heavy Industries (HHI). The six vessels being built in South
Korea under the BGT Plus Project will enhance the level of
Nigerian ownership and shipping capacity in the fleet through
the government's holding in NLNG.
For the contract, NLNG made additional investment to the
contractors' commitment for:
a) Use of suitable Nigerian goods and services in the
construction of the vessels.
b) Training of over 600 Nigerians in ship building in both
Nigeria and the contractors' shipyards in Korea.
c) Utilization of qualified Nigerians in the contractors'
shipyards as part of the workforce for the construction of
the vessels.
d) Promotion of the establishment of a ship repair yard in
Nigeria for in-country development of repair and
maintenance capacity for LNG ships and other large
carriers.
Ship Dry Dock and Repair Yard
Nigeria LNG Limited (NLNG) in partnership with Hyundai
Heavy Industries (HHI) and Samsung Heavy Industries (SHI),
reached out to the investment community on 9th December,
2014 in Lagos, to promote the development of a ship repair
yard in Nigeria – at Badagry Ship Repair and Marine
Engineering Limited (BSME) – that will be sited at Badagry
after feasibility studies were carried out at various sites (Onne,
Bonny, Olokola, Badagry, Ogogoro Island, Ladol, etc.) A
Special Purpose Vehicle (SPV) that will manage the
development of the repair yard is being put together.
BSME will bridge the gap created by the absence of an
operational dockyard to cater for the repair and maintenance
of Very Large Crude Carriers (VLCC), LNG carriers, large and
medium size carriers, drilling Rigs and supports vessels. This is
one of the Nigerian Content deliverables on the BGT Plus
project.
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Training and Skills Acquisition
l Thirty-five Nigerian trainees are currently in Korea at
Hyundai Heavy Industries’ shipyard to participate in the
ships’ construction in part implementation of Nigerian
Content deliverables on the BGT Plus project. This number
includes 28 out of the 57 trainees who recently completed
their initial training in Korea and seven out of the 20 that
successfully concluded training on Ship Design at
International Energy Service Limited (IESL) in Lagos.
l Over 90 Nigerians have completed the basic welding
training in the Bonny Vocational Centre training facility of
Hyundai and Samsung Heavy Industries.
l Six Nigerians are working as ship managers (two
Production Managers, two QA/QC Managers and two
HSE Managers) in the ship construction at the shipyards in
Korea.
l Fifty-seven trainees are undergoing ship construction
training in Samsung Heavy Industries in Korea.
l Training of Nigerians in the acquisition of DFDE
experience commenced in 2014 and includes cross-
posting to companies currently managing this class of
vessels, shipboard experience on board DFDE vessels, and
deployment to shipyards.
l The Ship Management Knowledge Transfer Project
(SMKTP) initiated in 2008 with Shell International Trading
and Shipping Company Limited (STASCo) was successfully
completed in 2014. Milestones included the birth of NLNG
Ship Management Services (NLNGSS), a ship
management department in NLNG, the phased take-over
of the management of BGT vessels by NLNGSS, and the
complete integration, in December 2014, of NLNGSS with
NLNG Ship Management Limited (NSML), the
wholly–owned subsidiary of NLNG dedicated to provision
of ship manning and management services to NLNG and
the industry at large.
University Support Programme
The University Support Programme, launched in 2014, is part
of NLNG's commitment to develop education and complement
the various efforts of government, the academia and other
stakeholders in Nigeria's education sector. Through the
programme, NLNG will spend about USD12 million
(representing USD2 million per university) on building modern
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 63
engineering laboratories and procuring latest engineering
equipment to aid teaching and research in six universities
across the six geopolitical zones in Nigeria, namely: University
of Ibadan, University of Nigeria, Nsukka, University of
Maiduguri, University of Ilorin, University of Port-Harcourt and
Ahmadu Bello University.
Construction, renovation and/or procurement work has been
ongoing in those universities since October 2014 when the
project implementation phase kicked off. The project is
expected to be fully delivered in 2015.
Finance
NLNG vendors continue to benefit from the 1 Billion USD
NLNG Local Vendors Financing Scheme (NLVFS) which offers
funding at extremely competitive rates to Nigerian vendors.
Under the scheme, vendors are not mandated to provide
collateral and require only modest capital contribution, with the
banks given the assurance of domiciliation of payments with
them. Over N200 million and over USD20 million has been
disbursed to NLNG vendors under the scheme to date.
Services and Procurement
NLNG encourages full participation of Nigerian companies in
its contracting and procurement processes while maintaining
international standards on quality, cost, schedule, ethics,
health, safety and environmental protection.
To facilitate Company's drive to expand its pool of competent,
reliable and competitive vendors and promote Nigerian
content development, the “Supplying Goods and Services to
NLNG” section of the NLNG website has been updated with
information relevant to vendors for conducting business with
NLNG including:
l Areas of business in NLNG with available or limited
opportunities
l Overview of upcoming contracting/procurement
opportunities in NLNG
l Details for registration on the Company's Electronic Vendor
Information Management System
l Vendor development opportunities
l Vendor related Frequently Asked Questions.
Examples of major awards made to Nigerian service providers
recently:
l Two Nigerian companies are currently managing the
Marine Operations Strategy Contract, a deliberate effort
by NLNG towards encouraging in-country assembly of
passenger boats, escort boats, rib craft in Nigerian ship
yards, and utilizing Nigerian materials and human
resources in the assembly of the vessels.
As listed below, Nigerian goods and materials have been
exported to Korea for use in the construction of the six new
DFDE LNG carriers.
l Paints manufacturing by PCMN and Berger Paints
Nigeria Plc is ongoing; over 350,000 litres of paints
have been produced and exported to both ship yards
in South Korea
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l Over 130,000 metres of low voltage (LV) cables from
Nexans Kabelmetal have been shipped to Korea.
l Over 9000 pieces or 158 tons of Aluminium and Zinc
sacrificial anodes from Metec West Africa have been
produced, shipped and installed on the hulls in Korea
l Other goods and materials including moveable ship
furniture will also be exported to the ship yards.
Vendor Development
Doing business with Nigeria LNG has engendered
improvement in some of our Vendors' business processes,
upgrading of their facilities and capacity to meet very stringent
requirements.
In the past, NLNG worked with Dorman Long Nigeria and
Nigerdock Nigeria PLC to enhance their galvanisation
capability, with Nexans Kabelmetal to increase manufacturing
capacity and with Nigerian Foundries to improve their
processes for the manufacture of trench gratings and manhole
covers.
Recently, Metec West Africa and Nexans Kabelmetal through
NLNG's Nigerian Content initiatives have undergone
international class certification and inspection for the
manufacture and supply of sacrificial anode and low voltage
(LV) cables respectively to meet the requirements of marine
applications in ship building.
Deliberate technology transfer initiative has enabled Waste
Pipe & Drainages (WPD) to safely and successfully complete
the change out of all nominated compressed air dryer bed
desiccants in U-4700 (14 vessels in total). This makes WPD the
second Nigerian contractor with this level of proficiency that
can compete with the previous sole contractor (CAKASA) in
LNG Trains molesieve bed change out activity.
The underlisted are examples of some of the indigenous
companies which have recently benefited from NLNG
Nigerian Content Policy implementation drive.
Berger Paints PLC
Berger Paints PLC received an order to supply marine coatings
for use on the two new DFDE LNG carriers being built in South
Korea for BGT by Hyundai Heavy Industries. Following that
order, the company was able to increase its portfolio of paints
and manufacture to international standards, having installed
state of the art laboratory equipment and acquired additional
production equipment.
Paints and Coatings Manufacturers Nigeria PLC
(PCMN)
Paints and Coatings Manufacturers Nigeria PLC (PCMN),
exported marine coatings to Korea for use on the four new
DFDE LNG carriers being built in South Korea for BGT by
Samsung Heavy Industries. As a result of the order and the
need for the company to increase capacity and competence,
PCMN had gone ahead to become the first company in Africa
to receive the Inter Marine Organisation's Intershield 300
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 65
certification. The company had also acquired additional
mixers and laboratory equipment.
Dornier Aviation Nigeria AIEP Ltd (DANA)
Nigeria LNG Limited recently awarded an aviation contract to
Dornier Aviation Nigeria AIEP Ltd for the management of
transportation of its staff and contractors to and from Bonny,
Lagos, Abuja and Port Harcourt. Part of the obligations to fulfil
the Nigerian Content requirement and deliverables for the
contract is the training of two Nigerian Pilots, by Dornier
Aviation Nigeria AIEP Limited.
Holborn Nigeria Limited
The positive outcome of a business relationship Nigeria LNG
Limited entered into with Holborn Nigeria Limited is the
manufacturing of 12 inch (30mm) diameter High Density
Polyethylene (HDPE) pipes which had hitherto not been
produced in the country. The company, with intervention and
support from NLNG, commenced manufacturing of these pipes
in Kano and the first order of supplies were subsequently made
to NLNG. The strategic impact of this ground-breaking
production by Holborn is significant.
Niger Delta Petroleum Resources
Nigeria LNG Limited recently engaged Niger Delta Petroleum
Resources (NDPR) – an indigenous marginal oil and gas field
operator – to supply up to 35mmscf (about 1 % of NLNG's
daily plant demand) of natural gas. The NDPR opportunity was
explored in conjunction with Shell Petroleum Development
Company of Nigeria Limited (SPDC) which gave initial
technical support required for the project development. NLNG,
however, successfully took over technical management support
of the project over a five-year period, culminating in the
successful commissioning of the gas supply project. This
achievement meets aspirations of increasing indigenous
contractors' participation in oil exploration activities as well as
reducing flaring activities in the country.
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THE ENVIRONMENTNLNG has a sound Health, Safety and Environment (HSE)
policy anchored on the need to take proper care of its assets,
the health and safety of its employees and stakeholders, and to
give proper regard to the sustainable management of the
environment.
In line with this, NLNG plans its work to:
· Prevent injuries and ill-health to workers and surrounding
communities;
· Prevent damage to assets and minimise any negative
impact on the environment;
· Avoid or eliminate future liabilities;
· Meet requirements for demonstrable due diligence.
Nigeria LNG Limited ensures continuous compliance with
applicable legislations as stipulated by the various regulatory
bodies (Federal Ministry of Environment (FME), Department of
Petroleum Resources (DPR), Rivers State Ministry of Environment
(RSME), etc) that have issued permits for her various operations
by carrying out regular reviews and evaluation of all existing
and proposed environmental laws and regulations that impact
or have potential impact on NLNG Business.
NLNG being the first major multinational company in Nigeria
to complete full EIA process for all its operating Trains 1-6
Projects before commencement of business, regularly interfaces
with the Federal Ministry of Environment (FME) and other
relevant Stakeholders, locally, nationally and internationally on
environmental issues.
An important element of the EIA process is to identify and
mitigate potential adverse impacts of NLNG's operations. For
NLNG's existing projects, a number of potential impacts
(positive and negative) were identified and mitigation
measures taken for the adverse impacts.
As a key stakeholder on issues that concern the environment,
FME regularly carries out quarterly impact mitigation
monitoring and annual compliance monitoring exercises of
NLNG Projects.
In addition, NLNG conducts regular monitoring of its own HSE
performance, in pursuance of continuous improvement and to
foster a positive HSE culture within the organisation, NLNG
conducts regular monitoring of its own HSE performance.
A summary of NLNG HSE statistics from 2007 to
2014 is as shown in the chart below:
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Discharges to Water
To ensure compliance with regulatory requirements and its HSE
policy, NLNG has adopted the principle of minimisation
through abatement at source for aqueous effluents which have
the potential of causing negative impact on the receiving
environment. Where this is not feasible, application of end-of-
pipe technology is utilised. Key environmental indicators are
regularly monitored to ensure NLNG's compliance with permit
conditions and applicable regulatory limits.
Periodically, a Post Impact Assessment of the recipient water
body is carried out to assess the cumulative impact of NLNG's
treated effluents and to confirm that NLNG's activities are not
interacting adversely with the environment.
Sewage Treatment and Disposal
NLNG has a dentrification/nitrification biotreater for waste
water. Sewage from the plant and all domestic sewage from
the Residential Area are treated in this facility so that only
treated clean water flows into the river. The biotreater is
designed to meet the stringent effluent water quality
specifications as recommended in the Health, Safety and
Environment Premises.
Solid Waste Management
Nigeria LNG's waste management strategy complies with the
concepts of 'waste management hierarchy' and 'duty of care'
for both on-site and off-site waste treatment and disposal
activities. The principle adopted for solid waste is the 'Cradle
to Cradle' principle, which is essentially the proper and
controlled handling, treatment and disposal of solid waste,
underpinned by the 4R philosophy of Reduce, Reuse, Recycle
and Recover. 'Duty of care' audits are regularly carried out
with federal and state government regulators. The company's
overall waste management performance objectives are to
minimize waste generated and continuously increase the
percentage of wastes recycled and/or reused when compared
to the fraction disposed or stored on-site.
Non-Hazardous Waste
The incineration of combustible waste is carried out within
NLNG's facility as the fragile nature of Bonny Island does not
allow for the creation of a landfill site. Consequently, non-
hazardous solid wastes are temporarily stored on the plant site
before being transported to treatment and/or disposal facilities
Waste Hierarchy
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 69
off the Island. These facilities are duly accredited by the
Federal Ministry of Environment and/or environmental
sanitation authorities.
Hazardous Waste
NLNG is committed to its policy of no harm to people and the
environment and the promotion of sustainable development.
The company therefore ensures the proper management of its
hazardous waste using the best practical environmental options
after approvals from the federal and state ministries of
environment.
Other waste management initiatives currently pursued by
NLNG particularly for hazardous waste include the use of buy-
back and recovery schemes with original manufacturers.
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 570
Emissions to Air
For emissions to air, the principle adopted is minimisation
through abatement at source. Dispersion modelling was
employed in initial environmental investigations to predict
possible areas of deposition of pollutant species for regulated
parameters that could potentially be generated from NLNG's
operations. In order to monitor its operational foot print, stack
emissions and ambient air quality monitoring are routinely
carried out at identified areas within the plant fence and
surrounding communities to ensure that ground level
concentrations at the workplace and in the nearby settlements
do not exceed regulatory tolerance limits for ambient air
pollutants.
NLNG is also committed to addressing the climate change
challenges through the implementation of Green House Gas
(GHG) and Energy Management Plan.
Environmental Noise Measurements and
Performance
Noise level measurements within the plant fence and in nearby
communities are carried out regularly to ensure that the results
meet regulatory requirements as well as the Project Noise
Design Specifications.
Below are typical Results for Noise Measurements carried out
at the plant fence:
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 71
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 572
BIODIVERSITY AND NATURE CONSERVATION
Nigeria LNG Limited has established a nature park on Bonny
Island to preserve the natural environment of its host
communities. The site of the Nature Park is the natural habitat
of salt water Hippopotamus, now rare in Nigeria, and other
interesting flora and fauna prevalent on Bonny Island.
�The park was established in recognition of the importance of
the flora and fauna, the sacrifices of Bonny people, and their
aspiration and commitment to keeping a permanent record of
their natural heritage and culture. It is also part of NLNG's
contribution to the national and global conservation objective,
in line with Rio Agenda 21, the Ramsar Convention and
Convention on Biological Diversity.
The park, named Finima Nature Park and measuring
approximately 1000 hectares, is for conservation, recreation,
and research on the fauna, flora and cultural heritage of Bonny
Kingdom. At present, the nature reserve is managed by an
NGO, the Nigerian Conservation Foundation (NCF). However,
in the future, it will be managed by a Board of Trustees drawn
from the host community, thereby encouraging community buy-
in and sustainability of the initiative.
The reserve area covers the rain forests and mangrove
swamps, as well as an ecologically important area of sandy
soil with fresh water ponds and tall timber between the
swamps and the beach. This diversity is a good representation
of the Niger Delta ecology, which affords a unique opportunity
for research and educational activities. Already, the reserve is
home to some wildlife species of high conservation value, a
variety of mammals, bird species and reptiles such as the
Mona monkeys, crocodiles, snakes and alligators.
In addition, Finima Nature Park is home to a number of species
classified by International Union for Conservation of Nature
(IUCN) such as the African Grey Parrot – Psittacus erithacus. A
number of studies including ornithological surveys are also
regularly carried out at the Park.
There is steady growth in the population of indigenous species
in the park as a result of measures put in place by NLNG,
discouraging hunting in the park and encouraging the
preservation of natural habitat.
In pursuing its environmental objectives, the company
considers public consultation and enlightenment fundamental
to fostering good relationships with its neighbours. Hence it
has initiated forest protection and biodiversity conservation
enlightenment campaigns in accordance with recommended
EIA mitigation measures.
Finima Nature Park is policed by park rangers who prevent
encroachment, monitor movement of animals, rescue animals
and provide guided tours within the park and adjoining areas.
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The rangers during their routine park walks in October 2014
discovered and retrieved whale bones that were washed
ashore along the coastal boundary of the Park. A total of 69
pieces of the whale skeletal parts were collected and
assembled and are currently being preserved at Finima Nature
Park (see picture on page 73 and below).
The company has partnered with community-based
organisations such as the Bonny Environmental Consultants'
Committee (BECC) and such non-governmental organisations
as Niger Delta Wetlands Centre and Nigerian Conservation
Foundation in outreach programs to schools, organisations and
settlements within Bonny Kingdom with the objective of
establishing conservation clubs in primary and post primary
schools and entrenching the culture of conservation early in the
youth.
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COMMUNITY RELATIONS AND DEVELOPMENTNigeria LNG's approach to corporate social responsibility is
anchored on sustainability, stakeholding and partnership.
As part of its CSR activities, the company, through the
Community Relations and Development Department, provides
support to its host communities. Specifically, NLNG supports
the improvement of infrastructure, health and educational
facilities and encourages local enterprise, facilitating know-
how and building capacity in the sustainable use of resources
in its host communities.
To build and maintain positive relationships with the
communities, engagement specialists are assigned to specific
settlements as engagement officers, covering Bonny, Finima,
Rumuji, Ubeta, and the pipeline communities. Others work as
development officers specialising in key areas such as health,
education, economic empowerment and youth development.
The company operates an open door policy. Officers meet
regularly with representatives of the host communities, formally
and informally, to maintain good relationships and enhance
mutual advancement.
Joint Industry Companies (JIC)
In 1998, the Joint Industry Companies (JIC), made up of
NLNG, Shell Petroleum Development Company Limited (SPDC)
and Exxon Mobil signed an MOU with Bonny Kingdom. This
development led to the establishment of the Bonny Utility
Company (BUC) with the sole responsibility of delivering
sustainable water supply and electricity to Bonny Kingdom. The
JIC has implemented many other projects under the MOU;
these include the 1.5km by-pass road, the 1.2km access road
and the Bonny Master Plan.
Pan Bonny Sustainable Development Conference
A Pan Bonny Sustainable Development Conference was
convened on the 25th of May 2013 by His Majesty, King
Edward Asimini William Dappa Pepple III, Perekule XI,
Amanyanabo of Grand Bonny Kingdom, in conjunction with
Bonny Chiefs' Council, and with the active support of the Joint
Industry Companies (JIC) led by Nigeria LNG Limited to
determine the future of development on Bonny Island.
The theme of the conference was "Expanding Partnerships to
Harness Multiple Opportunities for Growing a Local Economy
for Bonny Kingdom."
Conference accordingly resolved as follows:
1. That Bonny will update the Master Plan supported by
partners, in a manner that Bonny people can drive its
implementation, starting with the acquisition of baseline
information, to evolving a shared strategic development
vision and plan, with which they can define the direction
and measurement of progress.
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2. That Bonny will create a partnership platform as a formal
way of bringing together old and new development
partners, especially those interested in human development
and business/commercial partnerships, as well as in
creating synergy with government and development
agencies for the benefit of the kingdom and its people.
This platform is to be called Bonny Kingdom Partners for
Business and Development (BKPBD).
3. In order to be better prepared and welcoming to potential
partners as well as attract and maintain the confidence of
investors, developers and development agencies, Bonny
people resolve to evolve viable development governance
structures, maintain a conducive atmosphere for business to
thrive and organize themselves into effective business
institutions which meet current best practices.
4. That Bonny people will undertake self-reorientation to guide
the entire community towards enhancing business growth
and productive attitudes such as self-reliance,
entrepreneurship, and partnership building, in order to
engender growth and prosperity in the kingdom.
5. Conference agreed to set up an economic and social
development fund for Bonny, to finance the implementation
of the updated Master Plan when in place. It was also
agreed that the fund shall be set up and managed in line
with global best practices in order to inspire the
confidence of donors. Reputable global fund managers
shall advise Bonny Kingdom on the setting up and
management of the fund. The fund shall serve the purpose
of servicing infrastructural, enterprise and social
development, with a view to a secured economic future
and heritage investment to cater for the next generation
through investment in equities and bonds.
Already, an executive committee set up by JIC is looking into
bringing these aspirations to fruition. The Bonny Master Plan
has been updated, and will be formally presented to the
community in 2015. Thereafter, the institution to drive its
implementation will be inaugurated.
In 2014 another conference was held – the first ever Bonny
Youths National Conference. Its primary objective was to
reinforce the commitments made by the entire kingdom at the
Pan Bonny Sustainable Development Conference, and to
ensure that the youths of Bonny kingdom are able to drive this
vision as leaders of tomorrow.
Bonny Utility Company (BUC)
Bonny Utility Company manages the provision of utilities –
power and water – on Bonny Island. BUC activities are funded
by the Joint Industry Companies (JIC), comprising NLNG,
SPDC and Exxon Mobil with a financial contribution ratio of
50:30:20 respectively.
The initiative has provided Bonny communities over 98 percent
uninterrupted power supply since its inception. The benefits
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have been tremendous. There has been high local
development impact, with per capita electricity consumption
increasing from under 250 kWh per year in 2002 to over 960
kWh per year in 2014, full-time and part-time jobs created for
the local community, and years of disturbance-free operation
for the Island's major industries. Public services perform better,
businesses are flourishing because machinery and computers
can be utilised during the entire day and residential users
experience higher comfort levels. The scheme has also
improved the environment by eliminating noisy polluting
generator sets and, thanks to functioning street lighting, made
it safer to walk the streets of Bonny Town.
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Currently, BUC serves 11,700 households, essentially covering
the entire island via its power distribution network.
The scheme offers customers a progressive tariff schedule; there
is a free basic allowance followed by increasing energy
charges as a function of consumption. As a result,
customers—who range from low-income households to larger
service sector businesses—receive an indirect subsidy. The
utility uses prepayment metering and cash free transactions to
collect revenues.
BUC also handles the operation, maintenance and
management of water facilities in Bonny Island. The
sustainable water development interventions provided by
NLNG and its JIC partners include the multi-billion Naira
drinking water infrastructure in the ongoing Bonny water
upgrade.
The scope of Bonny water upgrade project includes the
following:
l Installation of water distribution network (about 90Km) to
the entire community with HDPE pipes.
l Construction of water fetching kiosks (about 300) at
different locations in Bonny and Finima for public use.
l Drilling of bore holes and construction of new water
treatment plants and overhead water tanks at
Ogugumanga, Old Town (Bypass Road area) and Akiama
.
Right of Way Maintenance Contract
NLNG recognises the Nigerian cultural attachment to land and
the obvious fact that no legislation, no matter how well
intended, captures all the expectations of the people. It is in
this regard that it adopted a systematic approach in its
pipeline communities which seeks to promote "a sense of
ownership or identification" and meet the communities'
expectations.
NLNG, after paying compensation for Right of Way trees and
crops, went the extra mile to ensure that perceived feelings of
dispossession and deprivation were assuaged. This was done
through the award of Gas Transmission System (GTS) Right of
Way (ROW) surveillance contracts.
Holders of GTS ROW Maintenance Contracts, which rotate
among the land owning families only, employ family members
to execute jobs which cover:
l Pipeline Right of Way surveillance and inspection
l Asset maintenance: painting of signposts and markers,
grass cutting, etc.
To encourage the contractors, an annual award ceremony is
held to recognise outstanding ROW contractors. Awards are
given to the Best HSEQ Compliant Contractor, and for the
timely submission of reports, among others.
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COMMUNITY DEVELOPMENT INFRASTRUCTURE PROJECTS
With activities ranging from electricity generation, road
construction and repairs to water supply as well as building
and furnishing of schools, Nigeria LNG Limited has made the
concept of good neighbourliness come alive in its host
communities. It has constructed ultramodern health centres,
provided hospital equipment, and, in some cases, also
installed electricity transformers. It has built several kilometres
of roads, several schools and primary health centres in several
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 580
communities in Rivers State and promoted social interaction
among communities. These are in addition to health awareness
campaigns, engagement sessions, sponsorship ofimmunization
campaigns, renovation of schools and town halls, sinking of
water boreholes, and provision of school desks and writing
materials in host and pipeline communities.
Examples of some of the projects successfully executed in our
host and pipeline communities are:
l Omokwa Town Hall project
l Rumuji 2.7Km road project
l Ogbunabali – upgrade of health centre
l Anwunugbokor – complete fencing and installation of
water bore-hole in the community school
l Amadi-Ama doctors and nurses quarters
l Peterside Community Health Centre
l Abalamabie Town Hall
l Finima Women Association Bakery
l Okposi Community Health Centre staff quarters
l Ubio Community Health Centre staff quarters
l Ebogoro Community Health Centre staff quarters
l Installation of three (500 KVA) transformers and building of
generator houses in Bakana
l Science laboratory at Community Secondary School, Ogbo
l Science laboratory at Community Secondary School,
Ubeta
l Odiemerenyi – external fencing off of four borrow pits.
The following projects are currently on-going:
l Bonny Water Reticulation Project
l Omoku cold room
l Ekpena and Ohali-Usomini Model Primary School Project
l Ubeta road drainage
HEALTH
Mass Deworming Exercise
Because of growing concerns over the surge of intestinal worm
infection, NLNG went into a partnership with Glaxo SmithKline
and Rivers State Ministry of Health aimed at abating the rate
of infection and associated health and educational problems
among children within the communities. This resulted in a mass
deworming exercise targeted at school-age children (6-15
years). In 2013, 80,000 children were dewormed. 2,399
teachers were trained to administer the drugs and provide
health education messages to the children in accordance to
World Health Organisation's guide on deworming. 272 public
and private primary and junior secondary schools in Bonny
and the Gas Transmission System (GTS) communities
participated in the exercise.
Roll Back Malaria Campaign
In support of the programme launched by both the Federal and
Rivers State governments to roll back malaria through improved
sanitation habits and use of insecticide treated bed nets,
NLNG launched the Roll Back Malaria Campaign in all its host
local government areas in Rivers State.
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In 2014, during the occasion of World Malaria Day, a total of
10,000 pieces of Rapid Diagnostic Test (RDT) Kits for malaria
diagnosis were donated to Rivers State Ministry of Health as
contribution towards the World Malaria Day Exercise in the
state. The objective is to support government's effort at health
care delivery particularly in our host communities – Bonny and
GTS communities.
Similarly, 2000 Hepatitis B and C test kits were also
distributed in Bonny Local Government Area.
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EDUCATION
Scholarship
As previously mentioned, education and human capital
development are special focus areas for NLNG. Consequently,
the company awards scholarships yearly to different categories
of students. NLNG has a three-tiered scholarship programme
as outlined below.
NLNG Post Primary Scholarship
The scheme aims at supporting high performing basic six
pupils in company's host communities and oil-producing states
to access post primary education in select secondary schools
in Nigeria.
The scheme kicked off in 2012 with 28 beneficiaries, and has
grown to a total of 116 beneficiaries by 2014.
Prospective pupils are admitted into the scheme based on
excellent performance in the National Examinations Council's
(NECO) annual common entrance examinations.
NLNG Undergraduate Scholarship
This was founded as a critical component of education
intervention programme for our host communities in 1998 and
later opened up to the rest of Nigeria in 2003.
A total of 2,700 undergraduates from various universities in
Nigeria have benefited from the scholarship scheme with a
spend of over N600 million. The introduction of online
application and use of social media (Facebook) for information
dissemination in 2012 made the selection process more
efficient and cost effective, and increased awareness. The
value of the scholarship has been reviewed upward from
N100, 000 to N300, 000 per awardee for an academic year
and it runs throughout the duration of the student's course. 100
new beneficiaries were added to the scheme in 2014.
NLNG Overseas Post Graduate Scholarship
This scheme was launched in October 2012 and is being
managed by the British Council. The first 10 beneficiaries left
in 2013 to the United Kingdom for their studies. The
scholarship is valued at between N9 million and N11 million,
depending on the course, and is tenable for programmes in
top academic institutions in the UK. Courses covered by this
scheme include Environmental Studies, Engineering,
Management, Accountancy, Economics, Information
Technology, Geology, Banking, Law and Medicine.
The first set of beneficiaries have completed their studies and
returned to Nigeria. The second set of 13 beneficiaries
commenced their programmes in 2014 in various UK
universities.
Integrated Top-Up Scheme
Integrated Top-Up Scheme (I.T.S), formerly known as the Bonny
Education Endowment Fund (B.E.E.F), involves the payment of
a quarterly top-up allowance to teachers and non-academic
staff of government post-primary schools on Bonny Island and
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 584
health workers in Bonny General Hospital. Over the years,
more than N200 million has been spent on the scheme.
Currently, the scheme has a total of 350 beneficiaries.
NLNG / Rivers State Science Quiz Competition
In 2007, this competition was introduced in partnership with
the Rivers State Ministry of Education to encourage the study of
science subjects amongst students in the state. Target subjects
for the quiz include Mathematics, Biology, Physics, Chemistry
and Computer Science. It involves students from public
secondary schools in Rivers State.
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Bonny Vocational Centre (BVC)
The Bonny Vocational Centre is an NLNG/Bonny Kingdom
partnership project designed to promote vocational and
entrepreneurial skills acquisition, development of technical
competencies and self-reliance in youths in Bonny community
in particular and Rivers State in general.
The Bonny Vocational Centre (BVC) has trained over a
thousand Nigerians in electrical installation, fabrication,
welding and pipe work, mechanical fitting, metal machining,
painting and decoration, civil construction and support
services, plumbing, timber and trowel vocation, catering and
hospitality, refrigeration and air condition maintenance, project
and procurement administration (for local contractors), general
business and administration.
The centre aspires to be a “Centre of Excellence” by producing
graduates capable of competing on the global stage. It is the
only City and Guilds accredited institution in Nigeria. Its
students, on successful completion of training are awarded an
International Vocational Certificate. It is also accredited by the
London Institute of Business to deliver the City & Guilds Institute
of Leadership & Management Certification; and recently by the
Nigerian National Board for Technical Education to operate as
an Innovation Enterprise Institution/Vocational Enterprise
Institution.
The centre has trained, graduated and awarded Advanced
Diploma Certificates of the City and Guilds of London Institute
to over 157 graduates over the past four years in various
technical and vocational fields of study.
The centre prides itself on its ability to help secure employment
for its graduates. At the moment, 107 BVC graduates are in full
time employment; 109 are in work placement (as interns) while
16 are in Samsung and Hyundai shipyards in Korea.
It also plans to partner with Rivers State Polytechnic, Bori, to
give opportunities to the centre's graduates who desire to
pursue Higher National Diploma (HND) programmes to be
integrated into the Nigerian curriculum.
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ECONOMIC EMPOWERMENT
Youth Empowerment Scheme (YES)
The Youth Empowerment Scheme was launched in 2004 as a
sustainable development initiative aimed at youths (18-35
years old) within NLNG's host communities. YES is designed to
make the participating youths economically and socially
responsible and self-reliant through guided technical and
managerial development training.
Since its inception, over 700 youths from various host
communities have participated in the scheme and have been
supported in vocational modules namely catering and events
management, hairdressing and cosmetology, fashion and
design, photography and video production, woodwork and
furniture making, and welding and fabrication.
However, following low success rate of trainees under this
scheme, the company in 2014 reformed the implementation
strategy to focus more on equipping the youths with skills in the
relevant industries which will enable them to effectively
compete for jobs anywhere in the world. In this, company is
guided by the understanding that acquisition of vital skills that
can make one secure gainful employment is the bedrock of
financial independence or self-sustenance.
The Federal Government's robust automobile assembly
transformation programme helped point company's attention to
auto assembly as the choice industry for an initial pilot scheme.
Anambra Motor Manufacturing Company (ANAMCO) Enugu,
a leading car assembly plant in Nigeria, subsequently
emerged as the training centre of choice. 40 youths passed an
entrance examination for the scheme; 38 of them from Bonny,
Finima, Rumuji, Ubeta, Amadi Ama and OgbuNabali, on
November 22, 2014, were enrolled into the Auto
Electrical/Electronics and Auto Mechanics training
programme. Plans are already in progress to improve on the
scheme in 2015.
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Nigeria LNG Agro Development Action (N-
AGENDA)
The Nigeria LNG Agro-Enterprise Development Action was
designed to enhance the revenue earning potential of rural
entrepreneurs through the provision of value added agricultural
and non-agricultural services – capacity building in farm
management techniques, exposure to improved varieties and
crops, field trips and linkage to farming institutes, and so on.
Also, support packs are periodically distributed to participating
farmers in the form of enhanced seedlings/stems, herbicides,
and fertilizer products.
In 2014, a total of 200 fish farmers drawn from various
communities were trained on new and emerging trends in
aqua culture farming and management.
Since 2014, emphases shifted to commercial farming and
linking the farmers to viable markets for their products.
Development agencies like International Fund for Agricultural
Development (IFAD), Market Development in Niger Delta
(MADE), Rivers State Sustainable Development Agency
(RSSDA) and Partnership in Niger Delta Development (PIND),
among others, as well as facilitators like International Institute
for Tropical Agriculture (IITA), Nigeria Agricultural Insurance
Corporation (NAIC) were engaged as partners and
coordinators in the task of empowering the subsistence farmer
to effectively transition to commercial farming.
Following collaboration with these bodies, commercial and
contract farming in cassava, poultry and fishing is billed to kick
off in 2015 in Ekpeye, Kalabari, Ogba, Okrika, ISB/OSB,
Abua, Emouha and Bonny kingdom.
Companies like Nigeria Starch Mills and Samvita have been
engaged to buy off the cassava from the farmers while
discussion is still on-going with TUNS Farms, a leading
supplier of poultry meats to KFC, Shoprite and Master Meat
for a contract for off-take of all the broilers to be produced
under a new poultry out-growers' scheme.
The partners will pull resources together to ensure that the
farmers achieve a high level of productivity. Demonstration
farms, where best practices in the process will be taught, are
proposed and this is aimed at improving the farmers'
knowledge and productivity. Seedlings – particularly cassava
stems – herbicides, fertilizers as well as extension services will
also be provided while the farmers will be immersed in
mechanized farming processes to ensure a complete break
from the traditional method. The focus is to use agriculture as
the new platform for employment and economic empowerment
in our host communities.
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THE NIGERIA PRIZES FOR SCIENCE, LITERATURE AND LITERARY CRITICISMThe Nigeria Prize for Science, The Nigeria Prize for
Literature and The Prize for Literary Criticism,
sponsored by Nigeria LNG Limited, aim to bring Nigerian
scientists and authors to public attention and celebrate
excellence in scientific breakthroughs and literary
accomplishments in the nation.
NLNG believes that the science prize will provide leaders with
answers to crucial issues in development; improve the
standards of living and re-energise the scientific community to
seek solutions to national problems. With The Nigeria Prize for
Literature and The Nigeria Prize for Literary Criticism, it is
expected that the quest for a prestigious prize will improve the
quality of writing, editing, proof-reading, and publishing in the
country with far-reaching positive effect on print and broadcast
journalism.
The prizes are administered, on behalf of Nigeria LNG Limited,
by the Nigerian Academy of Science and the Advisory Board
for Literature made up of members of Nigerian Academy of
Letters (NAL) and the Association of Nigerian Authors (ANA).
Winners are announced in October, commemorating the first
export of LNG cargo by NLNG on October 9, 1999.
At inception in 2004, the monetary reward for The Nigeria
Prize for Literature and The Nigeria Prize for Science was
USD20, 000, which was increased in 2006 to USD30, 000.
In 2008, it was again upped to USD50,000. In 2011, yet
another significant change in the administration led to the
increment of the monetary reward to USD100, 000 for each of
the prizes.
In 2004, Professor Akpoveta Susu and his then doctoral
student (now doctor) Kingsley Abhulimen, both of the University
of Lagos, won the maiden edition of the science prize. They
won based on their work Real-Time Computer Assisted Leak
Detection/Location Reporting and Inventory Loss Monitoring
System which was described by the judges as an outstanding
contribution to research in real-time leak detection in a network
of pipelines, or other flow systems, carrying liquids. That year,
there was no winner for the literature prize (Prose Fiction).
However, three authors, Bina Nengi-llagha, Omo Uwaifo and
Prof Akachi Adimora-Ezeigbo, received honourable mention for
their books: Condolences, Fattening House and House of
Symbols respectively.
In 2005, there was no winner for the science prize whilst joint
winners emerged for the literature prize which focused on
Poetry. Ezenwa Ohaeto and Gabriel Okara were rewarded for
their books Chants of a Minstrel and The Dreamer: His Vision
respectively. The third book on the final shortlist of three,
Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 91
Naked Among These Hills by Promise Ogochukwu, got
honourable mention.
Professor Micheal Adikwu, in 2006, showed in his winning
work, Wound Healing Devices (Formulations) Containing Snail
Mucin, that snail mucins can play a key role in the
pharmaceutical industry as a drug delivery agent. On the final
shortlist of three for the literature prize were Emeka Egwuda's
Esoteric Dialogue, Prof. Femi Osofisan's Ajayi Crowther: The
Travails of a Legend and Dr. Ahmed Yerima's Hard Ground.
Dr Ahmed Yerima claimed the prize in literature (drama) for his
book Hard Ground.
In 2007, as in 2005, there was no winner for the science prize
and joint winners emerged for the children's literature.
Professor Akachi Adimora-Ezeigbo and Mabel Segun emerged
joint winners with their books, My Cousin Sammy and
Readers' Theatre: Twelve Plays for Young People respectively.
Uche Umez, the third writer on the final shortlist, got
honourable mention for his book, Sam and the Wallet.
Dr. Ebenezer Meshida emerged winner of the 2008 science
prize with his work Solution to Road Pavement Destabilisaion
by the Invention of 'Lateralite': A Stabilisation Flux for Fine
Grained Lateritic Soils which will make Nigerian roads durable
through the elimination of potholes and gullies. The literature
prize in 2008 returned to Prose Fiction. 149 entries were
received. The final shortlist consisted of only two books. Kaine
Agary won with her first book, Yellow Yellow. The other book
on the shortlist was Jude Dibia's Unbridled.
Professor Andrew Nok won the science prize in 2009 for his
ground-breaking discovery of the gene responsible for the
creation of Sialidase (SD), an enzyme which causes sleeping
sickness (Trypanosomiasis). No winner emerged for the
literature prize which focused on poetry. Of the 161 entries
received, the following made it to the final shortlist of nine:
Lindsay Barrett's A Memory of Rivers, Omo Uwaifo's Litany, G
'Ebinyo Ogbowei's Song of a Dying River, Ademola Dasylva's
Songs of Odamolugbe, Musa Idris Okpanachi's Eaters of the
Living, Odoh Okonyedo”s From a Poet to Its Creator, Nengi
Ilagha's January Gestures, Hyginus Ekwuazi's Love Apart and
Ahmed Maiwada's Fossils.
The decision of the judges not to award the literature prize
precipitated significant changes in its administration. The ‘no
winner’ verdict attracted reactions from the Nigerian literary
community worldwide. Rising to the occasion as a truly
listening company, Nigeria LNG Limited convened a
stakeholders' engagement forum to examine and improve the
prize administration protocols. Consequently, the prize was
opened up to Nigerians everywhere in the world and the
names of the judges, hitherto kept secret, were made public.
The Nigeria Prize for Literature has since grown to be Africa's
most prestigious reward for literary excellence and one of the
richest literary prizes in the world.
Professor Akahehomen O. Akii Ibhadode was crowned winner
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Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 93
of the science prize in 2010 for his work on the development
of a new method in Die Design. That year, the prize continued
its circle with drama as the genre in focus. 93 entries were
received. The Killing Swamp by Adinoyi-Ojo Onukaba, Little
Drops . . . by Ahmed Yerima and Cemetery Road by
Irobi Esiaba made it to the final shortlist of three. The literature
prize got its first post-humous winner, Dr Esiaba Irobi, who won
the prize with his play Cemetery Road. He passed away
shortly after submitting his work for the competition.
In 2011, Adeleke Adeyemi, emerged winner of the literature
prize. Writing with the pen name, Mai Nasara, Mr. Adeyemi
won with his book The Missing Clock in the children's literature
category, the genre in spotlight that year. The judges described
the book as one that celebrates "ingenuity, hard work and
sparkles in its prose." The other books on the final shortlist of
three included: Eno's Story by Ayodele Olofintuade and The
Great Fall by Chinyere Obi-Obasi. 126 entries were received.
There was no winner for science that year.
In 2012, prose fiction was back in the spotlight for the
literature prize. Chika Unigwe beat 213 authors to the prize
with her book On Black Sisters' Street. She became the second
foreign based author to win the prize. Only a Canvas by
Olusola Olugbesan and Onaedo: The Blacksmith's Daughter
by Ngozi Achebe shared the final shortlist of three with
Unigwe's On Black Sisters' Street.
No winner emerged for science in 2012. However, a
stakeholder engagement session was organised by NLNG in
partnership with the Federal Ministry of Science and the
Federal Ministry of Education in Abuja. At the moment, the
science prize is undergoing review with the aim to re-position it
as the award of choice among scientists. A prize for literary
criticism was instituted by Nigeria LNG Limited to complement
the existing prize for literature.
2013 literature competition focused on poetry. From a total of
201 submissions, The Sahara Testaments by Tade Ipadeola,
Through the Window of a Sandcastle by Amu Nnadi and
Wild Letters by Promise Ogochukwu made the final shortlist of
three. Tade Ipadeola's The Sahara Testaments emerged the
winning entry. No science competition was organised in 2013
and in 2014.
The Nigeria Prize for Literary Criticism was introduced to
complement The Nigeria Prize for Literature.It is worth
N1,000,000 in prize money. Although it is open to literary
critics from all over the world, special consideration is given to
critical essays on new writing in Nigerian literature. There was
no winner for the prize in 2013.
The literature prize in 2014 focused on drama. 124 entries
were received. The initial shortlist of 11 consisted of Pandora's
Box by Ade Solanke, A Plague of Gadflies by Paul Emema,
Akon by Arnold Udoka, Iredi War by Sam Ukala, No Fault of
Mine by Ruth O Momodu, Oduduwa, King of the Edo's by
Jude Idada, Alekwu Night Dance by Friday John Abba, Under
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a Darkling Sky by Isaac O Ogezi, Cantankerous Passengers
by Ogbe Patrick Adaofuyi, Our Wife Forever by Julie Okoh,
Maybe Tomorrow by Soji Cole. Oduduwa, King of the Edo's
by Jude Idada, Alekwu Night Dance by Friday John Abba and
Iredi War by Sam Ukala made the final shortlist of three.
Professor Sam Ukala's Iredi War emerged winner. Prof. Isidore
Diala won the literary criticism award with his submission
“Colonial Mimicry and Postcolonial Re-membering in Isidore
Okpewho's Call Me by My Rightful Name”. Seven critical
essays contended for this prize.
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