Page 11 - AfrOil Week 04 2020
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The group, which made a final investment deci- sion (FID) on the project earlier this month, dis- covered oil at Sangomar in 2014.
The partners have estimated that the off- shore block, which includes the Rufisque,
Sangomar Offshore and Sangomar Deep Off- shore fields, holds approximately 645mn barrels of oil equivalent (boe) in recoverable reserves, including 485mn barrels of crude and 160mn boe of natural gas
NLNG in 10-year supply deals with Total, Eni
NLNG’s Trains 1 and 2 (Photo: KBR)
NIGERIA
THE Nigeria LNG (NLNG) consortium has concluded 10-year supply deals with two inter- national majors within the last week. The buyers are Eni (Italy) and Total (France), both of which are members of the group.
The first of the two was the sales and pur- chase agreement (SPA) signed between NLNG and Total last week. This document provides for the delivery of 1.5mn tonnes per year of LNG to Total Gas & Power, a subsidiary of the French company. The LNG will consist of remarketed volumes from Trains 1, 2 and 3 of the group’s liq- uefaction plant on Bonny Island, NLNG noted in a statement.
The second agreement is similar to the first, as it calls for the delivery of 1.5mn tpy of remar- keted LNG from Trains 1, 2 and 3 over a period of 10 years. This document was signed between NLNG and Nigerian Agip Oil Co. (NAOC), a subsidiary of Eni, the consortium said in a sep- arate statement on January 27.
This is not Eni’s first contract with NLNG. In December 2019, the Italian company signed another SPA that will see it take delivery of 1.1mn tpy of LNG from the group.
The statements did not reveal when NLNG intended to begin deliveries to Total and Eni under the new contracts. The group has said previously that it intends to make its first ship- ments of remarketed LNG to Vitol in October 2021. (The global commodities traders signed
its own SPA with NLNG in December 2019 and will receive 500,000 tpy.)
Last week, NLNG said in its statement that the supply deal with Total would support its “drive to continue to deliver LNG globally in consolidation of its position as one of the top-ranking LNG suppliers in the world.”
Eyono Fatayi-Williams, NLNG’s external relations manager, spoke similarly, saying that the contract was sure to “boost the company’s global presence and market reach.” She also highlighted the consortium’s efforts to secure its position as “a global LNG company helping to build a better Nigeria.”
The consortium’s existing contracts with Total, Naturgy (Spain), Galp (Portugal) and Botas (Turkey) for 2.67mn tpy of LNG from Trains 1, 2 and 3 are due to expire in 2020 and 2021. As a result, the group has been working to remarket production volumes from the three trains.
NLNG has four shareholders. Nigeria National Petroleum Corp. (NNPC) has 49%, and the remaining 51% is split between Royal Dutch Shell (UK-Netherlands), Total and Eni. The partners recently made a final investment decision (FID) on the construction of a seventh production train at the Bonny Island plant. When complete, Train 7 will raise the facility’s production capacity from its current level of 22.5mn tpy to 30mn tpy.
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