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Published On: Thu, Aug 30th, 2018

We remitted $100bn to FG, equity holders, NLNG boss tells panel

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By Christiana Ekpa

The Managing Director of Nigerian Liquefied Natural Gas (NLNG), Tony Attah, on Wednesday disclosed that over $100 billion worth of revenue has so far been remitted to Federal Government and other equity holders in the company.
Attah disclosed this at the investigative hearing into the ‘proposed sale of the Nigerian Liquefied Natural Gas Limited, NLNG’ titled the ‘Need to Investigate contract for modification of EGP3B production platform following the joint ventures agreement between the Nigerian National Petroleum Corporation and Chevron Nigeria Limited’; and ‘investigation of the contract for the upgrade of OML 58 Upgrade 1, the execution of Obote/Ubeta/Rumuji (OUR) pipeline’.
According to him, Federal Government through Nigerian National Petroleum Corporation (NNPC) which owns 49% equity got over $15 billion dividends and $6.5 billion tax, which positioned the company as the singular highest tax paying company in Nigeria and African continent.
Other shareholders namely Shell Gasa BV owns $25.6%, Total owns 15% while ENI International owns 10.4%.
On the company’s efforts towards reducing gas flaring in the country, Attah said: “despite our contribution to the country a lot of it is monetary more than $100 billion revenue and about $15 billion dividend to the government directly and also since we became tax-paying company since 2009, we’ve contributed more than $6.5 billion in taxes, helping to build a better Nigeria but essentially, we do more than financial contribution.
“As a result of Nigeria LNG being in existence, we have helped reduced gas flaring by more than 65% and will continue to work with our upstream suppliers to mop-up more because we produce the opportunity as the biggest gas sink for whatever gas is provided in the country.
“We have the capacity to receive that gas but I think by far the biggest opportunity is in Nigeria’s brand and reputation. Before NLNG, Nigeria was actually No. 2 on the undesired league of gas flaring nations in the world. But today, we are No. 7 ahead of other countries like united State, I mean, United States is flaring more than Nigeria,” Attah observed.
He added that the company is spending about $120 million on the construction of Bonny-Bono road which will connect Bonny to port Harcourt, slated for completion within 40 months.
In his intervention, Randoff Brown (PDP-Rivers) noted that NLNG is the most significant arrow-head of the Federal Government’s quest to eliminate gas flaring and derive value from the country’s 187 trillion cubic feet of proven gas reserves.
“NLNG has covered about 119 Bcm or 4.2tcf of associated gas to export as LNG and natural gas liquids thus helping to reduce gas flaring by upstream companies from over 60% to less than 25%.
“NLNG mpos up gas that would otherwise be flared, thus making significant contributions to the nation’s income, delivering in the last 13 years over $13 billion on gas purchases from oil producing companies, of which the Federal Government of Nigeria owns 55% – 60% CIT and other taxes,” he said.
Also speaking, Diri Douye (PDP-Bayelsa) who sponsored the motion on the need to investigate the contract for the modification of the EGP 3B Production platform following the joint venture agreement between Federal Government, NNPC and Chevron Nigeria Limited, frowned at the delay in the completion of the project.
While speaking on the development plans of the company, Attah unveiled the company’s plan to embark on $6 billion capacity development project for the Train 7, which has potential of creating 12,000 new jobs in the Niger Delta region.
On his part, Patrick Olimna, Total’s Executive Director (Assets management and Energy Solution), denied report on the sale of NLNG, explained that: “within the NLNG, the shareholding community, we did not have such a discussion.”
While speaking on behalf of Bureau of Public enterprises (BPE), Yusuf Adamu, Director of Mines and Steel, disclosed that NLNG was not part of the scheduled assets for commercialization and privatization While ruling on the presentations from stakeholders in the industry, Frederick Agbedi, chairman, House Committee on Gas Resources tasked the company on the need to replicate its model for the country to take its rightful position in the global market and the implementation of developmental projects.

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