Page 8 - AfrOil Week 37 2019
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AfrOil PROJECTS & COMPANIES AfrOil
SDC consortium wins Nigeria LNG contract
NIGERIA
NIGERIA LNG indicated last week that it had taken a step toward making a final investment decision (FID) on plans for the construction of a seventh production train at the Bonny Island gas liquefaction plant.
Specifically, it revealed that it had chosen an international consortium known as SCD for engineering, procurement and construction (EPC) work on Train 7.
In social media postings, Nigeria LNG said it had signed a letter of intent (LoI) with the group, whose members include Saipem (Italy), Chiyoda (Japan) and Daewoo Engineering & Construction (South Korea). It explained that it had done so after naming SCD as the winner of an international tender for the EPC contract.
Nigeria LNG has declined to reveal the value of the deal under discussion with the consortium, citing a confidentiality clause in the EPC contract. According to the Korea Her- ald, though, industry sources say the project is worth around $5bn.
Meanwhile, Tony Attah, the company’s managing director, said that he expected the construction of Train 7 to bring more than
$10bn worth of foreign direct investment (FDI), including the upstream end of the LNG value chain, into Nigeria. The project will also lead to the creation of around 10,000 new jobs while pushing Nigeria LNG’s production capacity up by 35%, he added.
The Bonny gas liquefaction plant is currently capable of turning out 22mn tonnes per year of LNG. Once Train 7 comes on stream, its pro- duction will rise by 8mn tpy to 30mn tpy.
Shareholders in Nigeria LNG – Eni (Italy), Nigeria National Petroleum Corp. (NNPC), Royal Dutch Shell (UK-Netherlands) and Total (France) – said last week that they expected to make the FID on the Train 7 project by the end of October. Once this milestone is reached, they noted, SCD will be able to start work and wrap up construction of the new production train in four to five years.
The Nigerian federal government has voiced its support for Nigeria LNG’s choice of an EPC contractor. The Permanent Secretary of the country’s Ministry of Petroleum Resources said last week that it backed plans for “speedy implementation” of the deal.
South Africa gives Eni, Sasol green light for exploration drilling at Block ER236
KBR
SOUTH AFRICA
Italy’s Eni and its South African partner Sasol have gained permission to conduct exploration drilling within Block ER236, an offshore licence area in the Indian Ocean.
South Africa’s Department of Mineral Resources and Energy recently gave a green light
to the long-delayed project, announcing that it
had granted environmental authorisation to the drilling programme. It did so within the frame-
work of Operation Phakisa, a governmental ini-
tiative that aims to promote the development of
the country’s marine resources..
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w w w . N E W S B A S E . c o m Week 37 17•September•2019
