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Brass LNG shareholders eye preferred bidder for onshore works

By on January 28, 2015

As a step ahead of the Final Investment Decision (FID) of the multibillion dollar Brass Liquefied Natural Gas (LNG) project in Bayelsa State, the shareholders now eye a preferred bidder for the onshore works.

Speaking in Lagos at a recent dinner in honour of the newly-constituted pre-Front End Engineering Design (FEED) team from Italy’s 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, told the visitors that what was between the shareholders and the FID was the choice of preferred bidder for the onshore works.

According to him, the federal government has provided all the payment guarantees when ConocoPhillips decided to exit the country.

Determined to ensure that the exit of ConocoPhillips and the discontinuance of the initial Cascade technology does not hamper the implementation of the project, the shareholders in the project recently constituted a new pre-FEED team and adopted a new technology, APCL.

ConocoPhillips, which held 17 per cent stake in the project, recently completed their “elegant exit” from the project.

THISDAY gathered that because ConocoPhillips was the licensors for the Cascade technology, which was the technology for building the plant, it was expedient for Brass LNG to change the technology.

To ensure that the 17 per cent stake left over by ConocoPhillips did not impede or cause unnecessary delays in the execution of the project, the continuing shareholders – Nigerian National Petroleum Corporation (NNPC), Total and Eni, agreed to take over the shares.

The partners have also taken a major step towards the realisation of the project by constituting a pre-FEED team to implement a new technology, APCL.

Gaius-Obaseki also told the visitors that the commitment demonstrated by the shareholders was very unusual for any project of the 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 COP 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 in 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. That is why when we met in London and the engineering group gave you all the data, I still insisted that we should visit the site,” Gaius-Obaseki said.

Speaking on behalf of the pre-FEED team, the leader of the team, Mr. Giampaolo Bachmann said they were 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.

In his remarks, the Managing Director of Brass LNG Ltd., Mr. Giovanni Romani, said he was confident that the work of the team would be productive.

He also thanked shareholders’ representatives for undertaking the site tour with the pre-FEED team.

“Shareholders’ representatives, many thanks for being here. Your presence is a proof that you are solidly with us on the project. They had a very good tour of the project. We are confident that your work will be be very productive. I am glad and excited with what you are doing in London,” Romani said.

A representative of Total, Joel Hervochon also said: “You have the picture of the horizon. We at Total are ever ready to help you as much as we can”.

On its part, the NNPC, through its representative, Adokiye Tombomieye, said the presence of the team was an indication that half of the job had been done.

“We will continue to support the project. We wish the team a successful study,” he said.

Also speaking, Joel Ayebapreye assured that his company would provide whatever support is needed for the project.

 

[ThisDay]