NNPC and Agip sign deal for NLNG trains

The NNPC in Abuja signed a modified carry agreement with Nigeria Agip Oil Company (NAOC) to finance Train 4 and Train 5a- of the Nigerian Liquefied Natural Gas (NLNG) project. The project, which is expected to cost $ 473.3 mm (about N 71 bn), would guarantee gas supply of 131 mm cf of gas per day to the LNG plant trains.
The Group Managing Director (GMD) of NNPC, Mr Mohammed Barkindo, who signed on behalf of the corporation, said at the event that NAOC would, under the agreement, finance in full (100 %) NNPC's portion of the project cost, estimated at $ 284 mm (about N 42.6 bn).

Barkindo described the agreement as a milestone in the history of joint venture agreements in the country. He commended NAOC for agreeing to finance the huge project despite the current liquidity crisis in the oil and gas industry caused by the global financial meltdown. He noted that the terms of the agreement were competitive; stressing that very few creditors could match the terms of the agreement with NAOC.
"We are proud of the performance of the NLNG project despite the shortfall in gas supply," he said.

Barkindo said that the project was in line with the Gas Master Plan, as it would maximise gas utilisation, reduce gas flare and support gas supply to the domestic market. The GMD, however, said that the gas delivered under the project would be treated in dedicated LNG plants.
Barkindo gave an assurance that the development of Train 4 and Train 5 of NLNG project would not hamper the Federal Government's policy of making adequate gas available for the power sector. He noted that NAOC was one of the multinational oil companies which met their commitments under the Domestic Gas Supply Obligation.

In his remarks, the Managing Director of NAOC, Mr Ciro Antonio Pagano, said that the company had consistently remained committed to Nigeria's development aspirations. He noted that the agreement was the first he would be signing since his assumption of office three months ago.
"I am willing to sign more of these mutually beneficial agreements in future," Pagano said. Barkindo and Pagano commended the negotiating committees of NNPC and NAOC for a job well done.