NNPC clarifies alleged $22bn Brass LNG project cost

… Says it paid $1 to  Conoco Philips

The Nigerian National Petroleum Corporation (NNPC) said it has so far spent $1.2 billion on Brass LNG since the inception of the project.

NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a statement on Wednesday in Abuja said that General Manager, New LNG Venture of the NNPC, Engr. Ahmed Dikko gave the clarification when he appeared at the House of Representatives Ad-hoc Committee investigating the expenditure and implementation of the $22 billion Brass LNG project.

There have been speculation that the project has so far gulped $22 billion.

Dikko said $1.2 billion was about the total money spent so far by the various shareholders to get the project to its current stage.

“This sum included the cost of acquiring project land, which covers approximately 606 hectres, cost of early works contract, Front End Engineering Design (FEED), Pre-FEED Concept Evaluation Study (PFCES), Project Environmental Impact Assessment (EIA), comprising both onshore and offshore studies, dredging, EIA activities and ambient noise survey, displacement and settlement action plan (FED-RAP), cultural site heritage study, staff and administration project cost from inception, sustainable development cost, among others”, he said.

Engr. Dikko said that the project which was conceived and designed to assist in monetizing the nation’s abundant natural gas resources, reduce gas flaring, and create employment for the Niger Delta youth, was already at a critical point of Final Investment Destination before the pull out of its major partner, the Conoco Philips.

He said as contained in the shareholders’ agreement, Conoco Philips, whose investment value was $192 million received only one dollar as entitlement.

Earlier in his remarks, the Committee Chairman, Jerome Amadi Eke, said that the essence of the meeting was to enable the Committee get the needed facts to deal with the petition and called for facility visit to confirm some of the projects as documented by the corporation.

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