INVESTMENT DECISION ON BRASS LNG TO BE TAKEN IN 2013 - BOARD
The Final Investment Decision (FID) on the two-train Brass Liquefied Natural Gas (LNG) project would be taken in the first quarter of 2013 the Board has said.
Board of the Brass LNG Limited disclosed that the 10 million metric tonne per year (mmt/y) project would proceed despite earlier doubts about the progress due to indications by ConocoPhillips, one of its shareholders, to divest its Nigerian assets.
Chairman of the Board, Dr. Jackson Gaius-Obaseki, while speaking yesterday during the company's 8th Annual General Meeting (AGM) in Abuja, assured that the project was expected to see its FID taken within the Q1 of 2013.
'I am happy that by the end of the first quarter of 2012, management presented to the board their Overall Integrated Master Schedule (OIMS) and estimated that with full commitment and unwavering efforts by all, the FID is possible within the first quarter of 2013, with possible mitigation efforts bringing it earlier,'' Obaseki said.
He informed that the contractual agreement for the supply of gas to Brass LNG would not be flouted by suppliers upon the project's completion and eventual operation.
On speculations regarding the future of the project Obaseki said: 'when the news of their exit from Nigeria came on air, I, in company of Nigerian National Petroleum Corporation (NNPC) nominated directors, met with ConocoPhillips executive management on April 27, 2012. ConocoPhillips was palms up confirming their intention of a possible exit from Nigeria whilst committing to the realisation of that project through supporting it to FID.'
He confirmed that ConocoPhillips has lived up to its commitment to the project as it recently approved a budget that would lead the project to FID, adding that the FID for the project is in view considering the near completion of all fundamental requirements to its actualisation.
He said the major fundamentals required which includes gas supply, Engineering, Procurement and Construction (EPC) contracting, funding plan and LNG sales are all at a final stage.
ConocoPhillips, Total and Italian company Eni holds 17 per cent stake apiece in the Brass LNG, while the NNPC holds 30 per cent equity with the Bayelsa State government having 10 per cent stake in the project.