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Tag: NLNG

  • NIMASA, others object to NLNG’s suit

    NIMASA, others object to NLNG’s suit

    • Hearing for today

    A Federal High Court, Lagos, will hear a preliminary objection brought by the defendants in a suit by the Nigeria Liquefied and Natural Gas (NLNG) Limited against the Attorney-General of the Federation and others.

    Justice Mohammed Idris refused to re-affirm an order he made restraining the Nigerian Maritime Administration and Safety Agency (NIMASA) from detaining NLNG’s vessels.

    The blockade was over NLNG’s alleged failure to pay statutory charges to the Federal Government.

    Justice Idris made the order on June 18 against the Attorney-General of the Federation, Mohammed Adoke (SAN), Global West Vessel Specialists Nigeria Limited and its Managing Director Mr Romeo Itima.

    It was an order of interim injunction restraining the defendants, either acting for or deriving authority from the Federal Government, including NIMASA, from charging three per cent of gross freight earnings, tax, charges or dues on all of NLNG’s international-bound and out-bound cargo, owned by it or its contractors or subsidiaries, pending the hearing and determination of the motion for interlocutory injunction.

    The Federal Government and Global West had asked the court to vacate or discharge the ex-parte order on the ground that it was made against NIMASA, who is not joined as a party to the suit, and that full facts were not disclosed to the court in seeking the order.

    But Justice Idris struck out the Attorney-General’s application on the ground that it was filed outside the time permitted by the court rules.

    The court also dismissed Global West’s application on the ground that there was no suppression of any material fact, and that the company could be sued on behalf of its principal (NIMASA).

    Shortly after the ruling, NIMASA’s lawyer Wole Akoni (SAN) urged the court to reaffirm the ex-parte order.

    But Global West’s lawyer Abiodun Owonikoko (SAN) vehemently opposed the application. He urged the court not to be tempted to fall into such trap.

    Justice Idris ruled that since the defendants are challenging his jurisdiction to entertain the suit, he would deal with the issue first.

    He said: “The only jurisdiction I have now is to hear the objections of the defendants.”

    He adjourned till today for hearing.

    NLNG said the respondents “have caused their agents, privies and other third parties particularly NIMASA to brazenly disregard and flout the extant Interim Orders of this Honourable Court, per Idris J. made on 18th June.

    “On 21st June, 2012 at about 5pm, about 15 officers and men of the Nigerian Navy in two NIMASA patrol boats accosted NLNG Security Patrol Team at the NLNG waterfront and ordered the applicant’s vessel, LNG Imo and a chattered vessel, Torm Thames to remain at the NLNG loading bay while LNG Oyo should remain at the Bonny Channel until further notice,” the applicant said.

    NLNG said despite being aware of the order, the respondents and their agents, “particularly NIMASA”, issued ship detention orders dated June 21 against its vessels.

    “The respondent’s agent has procured the services of the Nigerian Navy to intimidate, harass, prevent and block the applicant’s vessel and is currently patrolling the applicant’s waterfront to carry out the respondents’ orders and ensuring that none of the applicant’s vessels approach or leave Bonny Channel without being detained.

    “The activities of the respondents are in disobedience of the orders of this Honourable Court made on 18th June, 2013.

    “As a consequence of the respondents’ activities, the applicant is being compelled to shut down its plant as it can no longer export its products…

    “If the respondents are not immediately committed for contempt, the integrity and sanctity of our judicial system will be seriously eroded,” NLNG said.

  • NLNG may shut down operations over NIMASA feud

    NLNG may shut down operations over NIMASA feud

    The dispute between Nigeria Liquefied Natural Gas Limited (NLNG) and the Nigerian Maritime Administration and Safety Agency (NIMASA) may have reached the climax with NLNG planning to shut down its entire operations from tomorrow, it was learnt.

    The Nation gathered that the management of NLNG decided to shut down operations following the blockade of its Bonny channel since June 22 by NIMASA in defiance of an existing court order. The blockade has prevented NLNG’s vessels from entering or leaving the channel in the last nine days.

    NLNG declared ‘force majeure’ on Friday, June 28, 2013 to protect it from supply obligations to its international LNG buyers and other responsibilities. Gas purchase agreements span several years and breaches have serious legal implications.

    Dr. Kudo Eresia-Eke, General Manager of External Relations, Nigeria LNG Limited told The Nation on Sunday that “because of the blockade, we have had to drastically reduce production and gas intake. We cannot meet obligations to our buyers.”

    He declined to put a figure on how much the blockade was costing the country, simply saying: “We are counting because it is incremental, but certainly huge. When the blockade is lifted, we can then have a cost.”

    Industry operators have condemned NIMASA for not obeying the court order. They are of the view that the agency as a responsible corporate citizen ought not to have acted unilaterally given the likely adverse effect of its action on Nigeria’s economic interests. NIMASA had prevented some NLNG’s vessels from operating, which the firm saw as violation of court order.

    Eresia-Eke in a statement said that on Friday June 21, two NIMASA boats with 15 naval officers on board, ordered that one NLNG vessel (LNG Imo) and one chartered vessel (Torm Thames), remain at NLNG’s loading bay, whilst another NLNG vessel (LNG Oyo), remained outside the Bonny Channel until further notice.

    NIMASA, he said, subsequently issued Ship Detention Orders on 22nd June, specifically detaining three NLNG ships (LNG Enugu, LNG Oyo, LNG Imo) and barring them from accessing or leaving the company’s loading bay.

    He said: “These developments are in flagrant disregard of the court injunction issued by the Federal High Court in Lagos in Suit No FHC/L/CS/847/2013 by Honourable Justice M.B. Idris, presiding, on Tuesday 18th June 2013, against the Attorney General of the Federation, Global West, and any other parties including Nigerian Maritime and Safety Agency, NIMASA, from imposing any charges or taking any steps to block, detain or prevent access by the company’s owned or chartered vessels, whether inbound or outbound from Bonny channel or elsewhere in Nigeria.

    “It will be recalled that on 3rd May 2013, NIMASA blocked the Bonny Channel preventing entry and exit of NLNG vessels. This led to a series of meetings at the instance of the Federal Government which eventually ordered that the company should pay NIMASA its purported levies.

    “In deference to the Government, NLNG made a payment, under protest, in the sum of US$20 million (approximately N3.2 billion) into NIMASA’s designated account and subsequently approached the court to seek proper judicial clarity and a lasting resolution to the conflict between the NLNG Act and NIMASA Act.

    “The potential implications of this current action by NIMASA on NLNG operations are enormous and would impact negatively on its international LNG buyers, the international financial market, Nigeria to which NLNG contributes four per cent of the country’s GDP, its shareholders and the investment climate in Nigeria, let alone the reputational impact this may have on Nigeria’s image within the international investment community.”

    NIMASA’s Deputy Director/Head, Public Relations, Isichei Osamgbi, said the blockade of the channel was necessitated by NLNG’s action. He said: “This course of action was forced on NIMASA by the NLNG’s refusal or/and failure to abide by the outcome of the negotiated settlement arrived at through the mediation process it willingly instigated and subscribed to, after reaching agreement with NIMASA on its outstanding debt and paying US$20million out of it and its continued flagrant disregard for Nigerian laws. “Contrary to NLNG’s position, NIMASA is not aware of any court order against it or any suit brought by NLNG against NIMASA.

    “By its action, the NLNG has trivialised the mediation process and the position of the Federal Government of Nigeria whose Nigerian National Petroleum Corporation owns and holds 49 per cent of the shares in NLNG and which endorsed the agreement reached that NLNG should pay its taxes/levies and observe all its obligations under the laws of Nigeria in which it is operating.”

    As at the time of filing this report, there were no signs of a quick resolution of the crisis with both sides sticking to their guns. Responding to a query as to whether there was ongoing dialogue within government circles to resolve the dispute amicably, Eresia-Eke curtly replied: “The matter is in court.”

     

  • NIMASA,NLNG unending levy quarrel

    NIMASA,NLNG unending levy quarrel

    Since last month, the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigeria Liquefied Natural Gas Limited (NLNG) have been quarrelling over levy. NIMASA is insisting that it has right to collect levy from NLNG, which claims it enjoys a levy holiday. How can this issue be resolved? EMEKA UGWUANYI Assistant Editor (Energy) writes.

    They are government children with a difference. While the Nigerian Maritime Administration and Safety Agency (NIMASA) is fully owned by government, the Nigerian Liquefied Natural Gas (NLNG) is a public-private initiative, with government owning 49 per cent of its equity.

    They next highest shareholder has 25.6 per cent interest.

    The duo early last month reopened an old conflict, on payment of levies by the NLNG. However, the Federal Government through the relevant agencies intervened appropriately and arrived at a resolution that NLNG should pay its levies, including the arrears from 2009. The two organisations, it was learnt, were asked to discuss on modality of payment. The stakeholders in the petroleum and maritime industries hailed the resolution as a welcome development considering the roles and importance of the two firms to the economy.

    But barely a month into the settlement, a fresh conflict has begun to brew between the two institutions resulting in court action and disruption of operation. The disagreement may have arisen as a result of non-compliance with the resolution by the government and taking of NIMASA to court last week by NLNG, which sought injunction to prevent NIMASA from imposing any charges or taking any steps to block, detain or prevent access by NLNG’s owned or chartered vessels, whether inbound or outbound from Bonny channel or elsewhere in Nigeria.

     

    NLNG’s position

     

    NIMASA had at the weekend prevented some NLNG’s vessels from operating, which the NLNG saw as violation of court order. NLNG’s General Manager, External Relations, Kudo Eresia-Eke, in a statement said on Friday June 21, two NIMASA boats with 15 naval officers on board, ordered that one NLNG vessel (LNG Imo) and one chartered vessel (Torm Thames), remain at NLNG’s loading bay, while another NLNG Vessel (LNG Oyo), remains outside the Bonny Channel until further notice.

    NIMASA, she said, subsequently issued Ship Detention Orders on June 22, specifically detaining three NLNG ships (LNG Enugu, LNG Oyo, LNG Imo) and barring them from accessing or leaving the Company’s loading bay.

    She said: “These developments are in flagrant disregard of the court injunction issued by the Federal High Court in Lagos in Suit No FHC/L/CS/847/2013 by Hon. Justice M.B. Idris, presiding, on Tuesday, June 18, 2013, against the Attorney-General of the Federation, Global West and any other parties including Nigerian Maritime and Safety Agency (NIMASA) from imposing any charges or taking any steps to block, detain or prevent access by the company’s owned or chartered vessels, whether inbound or outbound from Bonny channel or elsewhere in Nigeria.

    “It will be recalled that on May 3, 2013, NIMASA blocked the Bonny Channel preventing entry and exit of NLNG vessels. This led to a series of meetings at the instance of the Federal Government, which eventually ordered that the company should pay NIMASA its purported levies.

    “In deference to the Government, NLNG made a payment, under protest, in the sum of US$20 million (approximately N3.2 billion) into NIMASA’s designated account and subsequently approached the court to seek proper judicial clarity and a lasting resolution to the conflict between the NLNG Act and NIMASA Act.

    “The potential implications of this current action by NIMASA on NLNG operations are enormous and would impact negatively on its international LNG buyers, the international financial market, Nigeria to which NLNG contributes four per cent of the country’s GDP, its shareholders and the investment climate in Nigeria, let alone the reputational impact this may have on Nigeria’s image within the international investment community.”

    On the reason NLNG went to court, Eresia-Eke said it was instructive to note that Nigeria LNG Limited and its shareholders still firmly believe in the rectitude of their earlier position that NLNG is duly protected by the provisions of the NLNG Act against the payment to NIMASA of the Sea Protection Levy, the three per cent freight levies on cargo exports shipped by NLNG, and that the two per cent Cabotage Levy on LNG carriers is inapplicable because NLNG’s LNG vessels are not involved in coastal trade or cabotage.

    She said “NLNG is a Nigerian company involved in, almost exclusively, international export business and is thus subject to all relevant national and international laws, standards and ethos with which it must comply. This, amongst others, requires that all its dealings are governed and premised on the universal principles of the rule of law to which the Nigeria Government also affirms its commitment.

    “The company has often clarified that the issues it has with payment of any levy, charge or impost has little to do with the amounts involved, but more with the principle of the rule of law, so that it can safeguard its international business, which rests squarely on its reputation as a law abiding company, as well as Nigeria’s reputation in the global community.”

     

    NIMASA’s stance

     

    NIMASA’s Deputy Director/Head, Public Relations, Isichei Osamgbi, said payments of the levies demanded of NLNG have been long overdue. He said the Act that established NLNG exempted it from paying levies as incentive to enable the shareholders recoup their investment. However, it stated clearly that the incentive was not meant to last forever. He noted that Section 2 of the NLNG Act also limits the tax holiday of the company to 10 years “or when the cumulative average sales price of LNG reaches US$3 in million metric British Thermal Units (MMBTU) as calculated in the First Schedule to the Act, whichever is earlier.”

    But as of January 2004, the New York Mercantile Exchange (NYMEX) indicated that the price of gas stood at US$9 per million metric British Thermal Units, indicating that the milestone for the expiration of the exemption granted to NLNG had been surpassed by 200 per cent in the cumulative average sales price.

    Besides, he noted that NIMASA is funded by money accruing to it through the three per cent of gross freight from all international inbound and outbound cargo from ships or shipping companies operating in Nigeria as stipulated in NIMASA Act of 2007. Also refusal to pay NIMASA levies by one company may induce others to follow suit, he explained.

    On the blockade and alleged of violation of court order, Osamgbi said: “The Nigerian Maritime Administration and Safety Agency (NIMASA), in its enforcement of Nigerian laws, served detention notices/orders on vessels belonging to/chartered by the Nigerian Liquefied Natural Gas Company Limited (NLNG).

    “This course of action was forced on NIMASA by the NLNG’s subsequent refusal or/and failure to abide by the outcome of the negotiated settlement arrived at through the mediation process it willingly instigated and subscribed to, after reaching agreement with NIMASA on its outstanding debt and paying US$20million out of it and its continued flagrant disregard for Nigerian laws.

    “Contrary to NLNG’s position, NIMASA is not aware of any court order against it or any suit brought by NLNG against NIMASA.

    “By its action, the NLNG has trivialised the mediation process and the position of the Federal Government of Nigeria whose Nigerian National Petroleum Corporation owns and holds 49 per cent of the shares in NLNG and which endorsed the agreement reached that NLNG should pay its taxes/levies and observe all its obligations under the laws of Nigeria in which it is operating.”

    Osamgbi also explained that besides being a regulator and ensuring safety of the Nigerian waters, NIMASA has other responsibilities. For instance, he noted that about $6 billion is raked in as tax by Filipinos that operate vessels in Nigeria. Also Nigerians, he said, don’t own vessels, adding NIMASA is trying to develop capacity and competence in these areas.

    He said: “Iin these areas, NIMASA plans to give up to 50 per cent support, while banks can give up to 35 per cent and the person or firm will provide 15 per cent but the banks have to guarantee our support and that of the firm or person by conducting or carrying out due diligence on the person or firm to confirm if such beneficiary is qualified.”

    On training aimed at human capacity development, he said NIMASA has three programmes. The agency, he explained, sponsors one of the programmes wholly while the second programme is sponsored jointly by agency and the state government of the beneficiary on the ratio of 60:40 per cent and the cost of the third programme is wholly borne by the beneficiary while NIMASA gives the necessary guides.

    He said it is only the Oron Academy that develops human capacity for the maritime industry and it doesn’t award degrees. Consequently, he said the agency wants to enter into partnership with some institutions including the University of Nigeria, Nsukka, University of Lagos, and Niger Delta University, among others to produce the right personnel for the industry.

    NIMASA, he noted, needs funds to meet its obligations of developing the right skills among Nigerians, create employment and most of all, ensure Nigeria waters is safe and operations carried out with best global practices and in conformity with laws.

    NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation (NNPC) 49 per cent; Shell Gas BV, SGBV, (25.6 per cent); Total LNG Nigeria Limited (15 per cent); and Eni International (N.A,) N. V. S. a. r. l (10.4 per cent).

  • NLNG sues NIMASA

    NLNG sues NIMASA

    The Nigeria Liquefied Natural Gas (NLNG) Limited yesterday filed a case at the Federal High Court, Lagos against the Nigerian Maritime Administration and Safety Agency (NIMASA) seeking judicial interpretation of the legality of the levies imposed on it by NIMASA.

    The company said it has also begun payment of the levies in installment ‘under protest, with the Government’s directive to pay the said levies’.

    The protracted dispute between both parties arose as a result of perceived conflict in the enabling Acts of both organisations, namely the Nigeria LNG (Fiscal Incentives, Guarantees and Assurances) Act on one hand and Nigerian Maritime Administration and Safety Agency Act, Merchant Shipping Act and Coastal and Inland Shipping Act on the other hand.

    NIMASA said its levies were applicable to NLNG, while the latter argued that they were exempted from such levies and charges by virtue of the NLNG Act.

    NIMASA had filed a suit against NLNG in 2010 claiming entitlement to these levies. After preliminary proceedings were taken and concluded, and the matter was ready for hearing, NIMASA filed an application to withdraw the suit, and on 3rd May 2013 resorted to self-help by blocking the Bonny Channel for 2 days, thereby preventing ingress and egress of NLNG chartered vessels with attendant financial losses and reputational damage to NLNG and Nigeria in general.

  • Execute LNG projects quickly, says expert

    Senior Business Strategy and Performance Analyst, Nigeria Liquefied and Natural Gas (NLNG), Ezekiel Adesina, has stressed the need to expedite action on the implementation of the impending Liquefied Natural Gas (LNG) projects in the country.

    Also included are the NLNG Train 7, Brass LNG, and Ok LNG, for long term export contract and other economic benefits, he said.

    Adesina, who spoke in Lagos, said the consequences of alternative gas such as shale gas, coal-bed methane (CBM), tight gas and gas hydrate, could be reduced if urgent measures are put in place in the sector.

    Such measures,he explained, include change of business strategy for export and local market, diversification of business group for domestic use of natural gas, the independent power projects (IPPs) and the petrochemical plant. He added that non-gas investors should not be allowed to participate in gas exploration.

    He stressed the need to exploit full gas value chain, upstream, midstream and downstream of the gas sector as well as gas fiscal incentives. These he said would promote new investments in the sector.

    Adesina said with 187 trillion standard cubic feet (Tscf) of proven gas reserves in the country and potential of 600 Tcf in probable reserves, there is need to fast-track the implementation of the Gas Master Plan to overcome some of the bottlenecks in the sector.

    He said the AGFA fiscal regime favours existing upstream investors. He added which according to him, acts as a barrier to non-oil investors and new entrants into the gas sector that there is need to create a separate fiscal regime for gas to make possible a level playing field for all investors in the sector.

    Adesina said the gas value should be unbundled to allow various players within the value chain to participate and increase its growth.

    He said Nigeria can only survive the current change in the global energy if the country will quickly respond to change in the oil and gas sector.

    He said: “There is need for us as a nation to have a sense of urgency in actualising numerous plans and projects in the gas sector before the economic benefits of our gas natural resources are lost. The need for change cannot be ignored if Nigeria gas agenda of making Nigeria a gas hub destination in Africa is to be realised.”

    He said there is need to take a critical look on the global gas environment and the Nigeria gas market in view of the current unconventional gas revolution across the globe, adding that the unconventional gas will continue to challenge the current gas business model.

    He said the economic viability of unconventional gas could be realised with technological advancement and pursuit of efficiency to reduce costs, financial risks and wellhead prices in production.

    Shale gas started with Mitchell Energy in 1990s. It pioneered the application of two oilfield techniques, hydraulic fracturing and horizontal drilling, to release natural gas trapped in hardy shale-rock formations. Economies of scale and improvements in techniques have halved the production costs of shale gas, making it cheaper even more than some conventional sources.

  • Lagos LPG to get supply from NLNG, NIPCO

    The Lagos State liquefied petroleum gas (LPG) known as ‘Eko Gas’, which is being run in partnership with private sector operators, will get supply from the Nigeria Liquefied Natural Gas Limited (NLNG), it was learnt.

    This is to guard against supply of substandard LPG also called cooking gas, to consumers.

    Chairman, LPG group of Lagos Chamber of Commerce and Industry (LCCI), a partner in the project, Omo’ ba Bambo Ademiluyi, said all safety measures had been taken into consideration. He spoke against the backdrop of the alleged substandard LPG in circulation and explained that the partnership was aware of supply of high propane content LPG, which is dangerous considering the obsolete and substandard gas cylinders in the system.

    He explained that even though the LPG (cooking gas) with high propane content is mostly distributed in the North because it is supplied from Niger Republic, the safety measures factored into the Eko Gas project is tight.

    He said all the LPG that would be supplied to Eko Gas would come from NIPCO and Nafgas facilities. The two firms get their supply only from the NLNG. “Therefore, the issue of supply of product with high propane content will not arise,” he added.

    He noted that the companies that would supply the cylinders will be member-firms of the chamber to ensure that the integrity of the cylinders is guaranteed.

    Ademiluyi said: “We are mindful of the LPG in circulation, and the utensils that are being used to take LPG from the filling plants to the homes. We are aware and also Standard Organisation of Nigeria (SON) and the Department of Petroleum Resources (DPR). We are all aware that a lot of these cylinders are very old and a lot of the new ones are substandard. However, for this scheme, the people that will be supplying all the cylinders, utensils, and skid plants, among others, are members of LCCI, their companies will not cut corners. They are all registered with the DPR, they have certification for their imports and we don’t expect anything untoward.

    “As regards high propane content LPG, it is predominantly circulated in the north, because it comes from Niger Republic. The two plants where we will be taking LPG from for this key project are NIPCO and Nafgas. Those two facilities don’t take LPG from anywhere except NLNG. Therefore, the integrity of this scheme is tight. One of the key things taken into consideration is safety because a single explosion of cylinder can bring the scheme down.

    “We have also designed an elaborate awareness creation programme for the scheme to educate people on the need to convert to use of LPG.”

    Lagos State Commissioner for Energy and Mineral Resources Taofeeq Tijani, said Eko Gas project, which was rolled out last week is approved by the Executive Council (Exco).

    He said: “The chief executive of the state is backing the initiative because the product is efficient, safe, support the environment and will be a benefit to the people.

    “The Ministry of Energy and Mineral Resources has got approval from the governor and executive council of Lagos State to adopt LPG as the fuel of choice for Lagosians. Having got the approval, we have worked with all stakeholders particularly the LPG Group of LCCI, those involved in LPG cylinders and products marketing. We have worked out the formula on how we will inform Lagosians on how we will distribute affordable cylinders and all the places the products can be obtained.

    “LPG skid tanks will be built in strategic locations for easy access of the product by consumers. The product will be launched in Surulere today. It is an opportunity for Lagosians to convert from use of kerosene, charcoal, and firewood to a cheaper, safer, cleaner and more reliable fuel.

    “Why we embarked on the initiative is because LPG is used worldwide as fuel and Nigeria produces the product in large quantities and most of our refineries have LPG as a by-product. International oil companies particularly NLNG and ExxonMobil, among others produce it. NLNG dedicated 150,000 metric tonnes to be used in Nigeria but as I speak, Nigeria is the largest supplier and lowest consumer of the product in Africa. The 150,000MT is still available and Nigerians are yet to consume up to that volume.

    “Therefore, part of this initiative is to work with all stakeholders to fully utilise consumption of this volume and more. We are also looking at companies that have built storage tanks in Lagos, NIPCO 4,000MT, Nafgas 8,000MT, Pipeline and Products Marketing Company (PPMC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) 4000MT. These storage facilities will help us move the products from where it is produced to demand centres in Nigeria.”

  • Time to look beyond NLNG, Shell, Mobil

    Time to look beyond NLNG, Shell, Mobil

    Bonny Island is regarded as the richest Island of its kind in the country and sub-Sahara Africa on account of being host to the Nigeria Liquefied Natural Gas (NLNG) Limited, Shell Petroleum Development Company (SPDC) and Mobil Producing Unlimited. But the Island’s needs, which are beyond the companies’ reach, must be attended to so that it does not pose future threats, writes OLUKOREDE YISHAU

    Shell Petroleum Development Company (SPDC) was the first to see the light in Bonny Island. Mobil Producing Unlimited saw it later. Nigeria Liquefied Natural Gas (NLNG) Limited did not see it until some two decades ago when work started on Africa’s largest LNG plant. They all liked the place and its potentials. The Federal Government, which has interest in all of these ventures, also knows what the country stands to gain from Bonny Island, which hosts the country’s only port of origin.

    The people were happy that the companies came. They had good times at the peak of the construction of the companies. The skilled and the unskilled were employed to get the companies ready.

    When work on the NLNG seventh train reaches its peak, thousands will be employed too.

    On November 5, 1998, the Island signed a Memorandum of Understanding (MoU) with the three major companies there. This has seen the Island benefiting in the form of roads, water and free electricity.

    But Bonny Island still needs help. Plenty of it. That was why at the weekend, its traditional ruler, the Amayanabo of Grand Bonny Kingdom, King Edward Dappa Pepple 111, spearheaded a pan-Bonny Sustainable Development Conference. An area the Island must be helped so that its youths do not become threats to the companies and the elite is education.

    A World Bank consultant, Dr. Rosemary Nwangwu, spoke of the sorry human capital state of the community.

    Dr. Nwangwu said: “The number of teachers in Bonny primary schools is inadequate. There are no teachers even in the core subject areas: English Language, Mathematics and the Sciences. There are 21 public primary schools in Bonny Local Government Area. These 21 schools have a total of 5,949 pupils (male, 3010, female, 2939) taught by 139 teachers. This gives a teacher-pupil ratio of 1:44 as against the policy stipulated ratio of 1:35.

    “The secondary schools are no better staffed. There are four public junior and four public senior secondary schools in the Island…The junior secondary schools have 1,949 students… and are taught by 27 teachers. The senior secondary schools have 1,896 students and are taught by 71 teachers. Also at this level, there are no Mathematics, English Language or Science teachers.”

    The result of these, she said, was poor performance in terminal examinations.

    Dr. Nwangwu said in the last 10 years, the oldest school in the Island has recorded only 12 per cent pass with five credits in WAEC.

    She said: “These young people have been processed into nothingness and are not equipped to do anything. A more dangerous reality for the community is that the young people who are unable to make the pass mark are unable still to get into any other system that can enable them acquire skills. They are lost in the education system and lost to their families in terms of income generation and survival skills. These persons who dropped out from the system cannot help themselves or the system.”

    King Pepple said things have to change. He said there was still a long road to travel. He said the time had come to attract more partners to drive its development other than the NLNG, Shell and Mobil.

    According to him, the Island must be steered to the shores of development and prosperity for the sake of the future generation.

    He said: “We raise our voices to governments, the private sector, all international development agencies, all friendly corporate organisations that Bonny is open for business and to work with all well-meaning people to grow a project that we can all be proud of as partners.”

    The Executive Director of the Rivers State Sustainable Development Agency (RSSDA), Mr Nobel Pepple, said the people must look beyond oil and gas for the development of the community. He said alternative livelihood could be found in fishing and agriculture.

    This position was also canvassed by the Netherlands Ambassador to Nigeria, Mr Bert Ronhaar, who said with the sea in the Island, it can supply fishes to the rest of the world and make money.

    NLNG Managing Director Babs Omotowa, who represented the three oil and gas firms operating in the community at the conference, said a lot of work still needs to be done. He said the NLNG, Shell and Mobil would support the community’s drive for sustainable development.

    He said: “There seems to be the absence of a new direction for development after the exhaustion of the MoU items signed by the community with Joint Investing Companies (JIC). There are also issues of community ownership and programme/project sustainability as well as the need to broaden the support base of development in a holistic manner for the greater involvement, empowerment and enjoyment of the community as a whole. There we hope this conference will address and possibly encapsulate a workable plan for the future.

    “Finally, there is also a need for mid to long term outlook by the community in conceiving and initiating development programmes against the current short term yield expectations. The community needs to leverage on its latent and available resources to drive development from within.

    “On its part, JIC will support this transition and, in partnership with other external agencies, also support the development of this new way of thinking- and working. This will engender self- regulating development, communal confidence, and encourage external investors and international organisations to contribute to the socio-economic development of the island.”

    A communique at the end of the conference said the community must seek new partners to work with existing ones for its development in the areas of human capital and so on. It also agreed to set up an Economic and Social Development Fund to finance an updated Master Plan, service infrastructural and social development.

    The need to look beyond oil and gas for sustainable development of the community, said observers, is strengthened by the changing global oil needs.

    A day before the conference, it emerged that the country’s oil exports will remain well below last year’s average in July. The country plans to export 1.92 million barrels a day of oil in July, according to details of crude shipments provided last Friday to Dow Jones Newswires by traders in the market. Next month, the country will export 1.76 million barrels a day, which is below the country’s average export volume of 2.24 million barrels a day last year.

    In the past, the drop in supply would have pushed up price. But not anymore.

    This is attributed to the booming production in the U.S. shale oil fields.

    Managing Director, Swiss consultancy Petromatrix Olivier Jakob said:

    “It used to be that supply disruptions were a problem. Now (Nigerian supply cuts) are welcome to balance the market, and that says something about the structural change.”

    In April, Shell was unable to fulfil contractual deliveries of Bonny Light crude oil named after the Island, where it is sourced, after a high number of thefts forced it to close the Nembe Creek pipeline for repairs. Shell said around 150,000 barrels a day of production was deferred because of the shutdown. This did not affect price.

    Torbjorn Kjus, an analyst, said: “It’s not only the supply now, but it’s also the demand from all of the key sources. The U.S. is kind of slipping away.”

    Speaking at a conference in Oxford, United Kingdom, Minister of Petroleum Mrs. Diezani Alison-Madueke said: “Shale oil has been identified as one of the most serious threats for African producers.”

  • NLNG prize for literature gets 205 entries

    The Nigeria Liquefied and Natural Gas (NLNG), organisers of the annual NLNG prize for literature has received 205 entries for this year’s competition. Out of these, 197 entries were from authors in Nigeria and the Diaspora that will be competing for Africa’s most prestigious literary prize. The remaining eight other entries are for the newly introduced literary criticism of Nigerian literature. The literary criticism is opened to literary critics across the world irrespective of nationality.

    The advisory board for literature led by Professor Emeritus Ayo Banjo, a former Vice- Chancellor of University of Ibadan (UI) presented the entries to Prof Romanus Egudu, leader of the judges. Other members of the panel of judges include Prof Omolara Ogundipe and Dr. Andrew Abah. Prof Kofi Anyidoho, a poet and a Professor of English at the University of Ghana will serve as an international consultant to the advisory board.

    According to Egudu, our expectation is excellence in poetry creativity. We expect the best from the submission noting that ‘it is either the best or nothing. Whatever the panel considers excellent creativity is what they shall be looking for.’

    On the newly introduced category, Prof. Banjo said it is to expose Nigeria literature to the outside world, adding that the intention is to expose the best of works produced in Nigeria to literary scholars across the world.

    The Nigeria prize for literature is awarded yearly and it rotates from prose-fiction to drama and to children’s literature. This year it is the turn of poetry.

    As regards the award for literary criticism special consideration would be given to critical essays on the works of the emerging generation of Nigeria writers. The entries for the literary criticism award must have been published in a reputable international journal.

    The Nigeria Prize for Literature now in its 10th year is meant to reward excellence and celebrate works of outstanding merit in literature.

    The General Manager, External Relations, Kudo Eresia-Eke, said NLNG is trying to encourage reading and writing and also enhance literature across the country. He said every year of the prize is significant; every year is a milestone. He urged all those who love literature to celebrate it. NLNG Limited also sponsors the Nigeria Prize for Science.

     

  • NLNG exports delayed over tax dispute

    NLNG exports delayed over tax dispute

    Nigeria’s Liquefied Natural Gas (LNG) exports have been delayed after a security agency blocked ships from accessing the Bonny terminal from May 3 to May 5, the state-LNG firm said on Monday.

    The Nigerian Maritime Administration and Safety Agency (NIMASA) stopped the ships from entering or leaving the 22 million tonnes-a-year terminal because it said the NLNG was not paying its freight levies.

    “Nigeria LNG is a law-abiding corporate citizen and pays all its lawful dues and taxes … NLNG’s position had been that it was exempted from the levies,” Reuters quoted the firm as saying in a statement.

    Access was denied from 1600 GMT on Friday until an unspecified time on Sunday, said NLNG.

    One ship loaded with LNG was prevented from exiting the terminal during the blockade and two ships for loading could not enter, an LNG industry source told Reuters.

    The Nigerian National Petroleum Corporation owns 49 percent of Nigeria LNG with Shell holding 25.6 percent, Total 15 percent and Eni 10.4 percent.

    Nigeria ships over 250 cargoes of LNG a year, contributing around seven percent of global supply and accounting for four percent of Gross Domestic Product in Africa’s second largest economy, according to NLNG.

    Products’

  • Blockade: NIMASA adamant, NLNG cries out over economic loss

    …NLNG asks NIMASA to leave court to decide dispute

    The face-off over the blockade of Bonny Channel continued yesterday as the Nigerian Maritime Administration and Safety Agency (NIMASA) stopped a ship, NLNG Lagos, laden with gas from sailing from the loading bay.

    Also another ship, NLNG Adamawa ,was unable to come into the buoy.

    But the Nigeria Liquefied Natural Gas Company (NLNG) yesterday, in a statement, asked NIMASA to leave the court to decide the dispute on duties between the two agencies.

    It was learnt that NLNG officials are also mounting pressure on government officials to intervene to prevent economic loss to the nation.

    A top official of NIMASA, who spoke in confidence, said: “Our agency is resolute in recovering outstanding statutory levies from the NLNG.

    “We will not bend the rules for any agency. We also have another ship, NLNG Adamawa, which is unable to come into the buoy since the blockade started.

    “We learnt that the NLNG has been mounting serious pressure on senior officials of government to force NIMASA to lift the blockade but this is about asking the company to meet its responsibilities.”

    But, NLNG in a statement through its General Manager, External Relations, Kudo Eresia-Eke, asked NIMASA to leave the court to decide the dispute on levies between the two government bodies.

    The statement said: “A vessel said to be from NIMASA blocked the Bonny Channel stopping NLNG vessels from either going in or out.

    We understand that NIMASA has resorted to this as self-help to extract levies from the company. NLNG had continuously informed NIMASA that it is exempted by the NLNG ACT, an act of parliament, which has provided waivers from such prescribed levies. Any such payments contrary to the NLNG ACT would therefore be illegal.

    “NIMASA had earlier gone to court to resolve this issue, but later withdrew the case. We believe that under the rule of law the courts are the appropriate interpreters of the law where there is an issue in contention. We believe that NIMASA as part of the Federal government of Nigeria is also a respecter of the rule of law.”

    The statement added that besides the economic loss to the nation as a result of imminent production shutdown that this action might cause, there is the greater potential reputation damage to the country.