Shareholders rejig mechanisms for Brass LNG’s take-off
HOPE of reviving the multi-billion dollar Brass Liquefied Natural Gas (LNG) project was raised recently, as the shareholders constitute new pre-Front End Engineering Design (FEED) team and adopted a new technology, (APCL) to spur the implementation of the project.
The project almost hit the rock recently with the exit ConocoPhillips, which held 17 per cent stake in the project. ConocoPhillips was the licensor for the former technology (Cascade), which was designed for building the plant, hence the decision by the Brass LNG shareholders to change the technology.
The shareholders- Nigerian National Petroleum Corporation (NNPC), Total and Eni, have agreed to take over the share to fill the vacuum created by the company’s exit.
Speaking in Lagos at a recent dinner in honour of the team from Eni, after the visitors and other shareholders had undertaken a tour of the project site at Brass Island in Bayelsa State, the Chairman of Brass LNG, Dr. Jackson Gaius-Obaseki, said the commitment demonstrated by the shareholders was very unusual for any project of its kind anywhere in the world.
“Brass LNG is a project that enjoys total support by all tiers of government and that makes our job easier. It might interest you to know that the visit you undertook today, the President had undertaken it and the legislature had undertaken it too. We had undertaken an international invitation to tender (ITT), evaluated the tenders received and what was between us and the Final Investment Decision (FID) was the choice of the preferred bidder for onshore works, after government had provided all the payment guarantees, when ConocoPhillips decided to exit the country.
“The work that has been carried out including what you saw during your visit and the shareholders commitment should allow us to hit the ground running” he said.
Gaius-Obaseki also told the visitors that the remaining shareholders had seen the commitment of the government on the project and decided not to seek a replacement for ConocoPhillips.
“The government is very much in support; the shareholders have demonstrated their commitments; the communities have their expectations. Therefore, we should not behave as if nothing has been done. After spending over $1 billion, we cannot throw the baby and the bath water away.” Gaius-Obaseki said.
Speaking on behalf of the pre-FEED team, the leader of the team, Mr. Giampaolo Bachmann, said the group was excited to be in Nigeria and to visit the project site.
“We are happy with what we saw and promise to meet your expectation,” he added.
The Managing Director of Brass LNG Limited, Giovanni Romani, said he was confident that the work of the team would make positive impact to the realization of the project.