The Nigerian National Petroleum Corporation (NNPC) yesterday said only $1.2 billion has so far been committed to the Brass LNG project.
Speaking at the House of Representatives Ad-hoc Committee investigating the expenditure and implementation of the $22 billion Brass LNG project, General Manager, New LNG Venture of the NNPC, Engr. Ahmed Dikko, said the $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. Dikko said the project which was conceived and designed to assist in monetising the nation’s abundant natural gas resources, reduce gas flaring, and create jobs for the Niger Delta youth, was already at a critical point of Final Investment Decision before its major partner, the Conoco Philips, pulled out.
He said as contained in the shareholders’ agreement, Conoco Philips, whose investment value was $192 million received only one dollar as entitlement.
He said the exit of the oil firm was a serious setback, adding that the corporation’s decision to work with the firm to deliver the project was due to its readiness to provide the needed technology to drive the process