735i: The same mistakes we made in the '60's we are making again now.
Why on earth should Chevron Nig Limited have 70% stake and NNPC just 15%?
Who is signing off these contracts?

735i: The same mistakes we made in the '60's we are making again now.
Why on earth should Chevron Nig Limited have 70% stake and NNPC just 15%?
Who is signing off these contracts?

atlwireles:

You are commenting on the wrong thread.

735i: The same mistakes we made in the '60's we are making again now.
Why on earth should Chevron Nig Limited have 70% stake and NNPC just 15%?
Who is signing off these contracts?

HNosegbe:

So it cost almost $10billion to construct this plant in Nigeria, yet cost just about one-eighth of the amount for a similar-sized plant in Qatar?

Even when you account for the time value of money over 8 years at the rate of 10%, $1.2 billion amounts to less than $1.5 billion (or thereabouts).

The cost of doing business in Nigeria ehn...

Rich4god: Nice one... I hope this will improve our economy on the high side and not get abandoned after some period...

HandOfChukwu: NO, you are the one who is commenting in the wrong thread, you should be in the GEJ d1ckriding thread instead.

atlwireles:

How is that?

AroOkigbo:
.
You are right to an extent- but note the following:
Unlike in Qatar,
1. EGTL is built on a reclaimed land (you don't want to know how many cubic feet of sand was used)
2. The modules were fabricated in Qatar, Korea, etc and shipped to Nigeria. A new wharf had to be built to take these heavy modules. Moreover, the low water depth meant the sea had to be dredged to take heavy ships.
3. Location. Escravos is only accessible by air or water. A lot of money was spent on flying staff and contactors from Warri and Lagos. Aero contractors, Arik and other airlines made a lot of money. Logistics took a good chunk of the cost of the project.
4. Converting gas to liquid is a whole new technology owned by Sasol. Chevron spent a lot to train operators in SA, US and Qatar. Over 200 people were trained at a point...with some trainees spending over 3yrs in SA.
5. Power supply. A brand new power plant had to be built to take care of energy requirements. And believe me, the energy requirement is high.
6. etc...etc. I don't want to talk about money spent to settle communities, ...and govt. big boys to keep the project going. Uduagha must be commended though. ..without him, the project would have been cancelled by the senate midway.


The GT Diesel and naphtha produced will be exported...100%. Our trucks cannot run on that quality of diesel. So don't expect the price of diesel ever coming down as a result of this project.

atlwireles:

NNPC brings zero to the table, their only claim to some shares here, is title/ownership of the mineral rights.

AroOkigbo:
.
You are right to an extent- but note the following:
Unlike in Qatar,
1. EGTL is built on a reclaimed land (you don't want to know how many cubic feet of sand was used)
2. The modules were fabricated in Qatar, Korea, etc and shipped to Nigeria. A new wharf had to be built to take these heavy modules. Moreover, the low water depth meant the sea had to be dredged to take heavy ships.
3. Location. Escravos is only accessible by air or water. A lot of money was spent on flying staff and contactors from Warri and Lagos. Aero contractors, Arik and other airlines made a lot of money. Logistics took a good chunk of the cost of the project.
4. Converting gas to liquid is a whole new technology owned by Sasol. Chevron spent a lot to train operators in SA, US and Qatar. Over 200 people were trained at a point...with some trainees spending over 3yrs in SA.
5. Power supply. A brand new power plant had to be built to take care of energy requirements. And believe me, the energy requirement is high.
6. etc...etc. I don't want to talk about money spent to settle communities, ...and govt. big boys to keep the project going. Uduagha must be commended though. ..without him, the project would have been cancelled by the senate midway.

The GT Diesel and naphtha produced will be exported...100%. Our trucks cannot run on that quality of diesel. So don't expect the price of diesel ever coming down as a result of this project.

Blockus:


You sound like a vulcaniser.

MoyoGENERAL: [color=#770077][/color]
na wa for your facts oooo Mr Patrick atuanya @ business day..
how come shell GTL qatar .....come be 34,000bpd.....
don't just give us wrong info and expect all to accept it hook line and sinker!!!...

atlwireles:

NNPC as usual might not have even contributed one kobo to this project.

HNosegbe:

So the diesel is not intended for the domestic market? Interesting.

Your detailed explanation still highlights the infrastructure and human capital deficit problems that Nigeria faces, which reinforces my point about the high cost of doing business in Nigeria.

iamord:

Na Land dem bring come and make connections with tribal leaders and political elites to chop. Not forgetting the militants.. Their cut dey inside..

U see the only difference between slavery era and now is that we deal in oil and not humans.. The trade pattern has been the same

atlwireles:

Nigerians and the people that ran NNPC for years refused to learn. The day we come to the understanding, and close NNPC down, then allow private companies both local and international, manage our oil sector. We will come to realise, what a waste NNPC has been for 40 years.

atlwireles:

Is shell GTL Qatar the same thing as Oryx GTL Qatar?

iamord:


I believe in the african dream.. But sadly you are right! We keep proving that we can't do it..even when we say we can.. I mean what's the use of nnpc anyway. A ministry should just be created to ensure the oil and gas sector policies and followed and monitor the likes of shell etc, cos NNPC is just a puppet for making money.. but at that the truth is that we don't really own our Economy... Chai!!! U know what this picture creates in my mind??

Our leaders and we as a people have shot ourselves in the foot!!!

arbitrage:

No, Shell's Pearl GTL in Ras Lafan, Qatar is the world's largest GTL plant in capacity (size and production per day) and was completed on schedule after Orxy GTL, which is owned by Qatar Petroleum and Sasol of South Africa, the licence owner of the GTL technology. ExxonMobil planned to build the largest then in the sane Ras Lafan industrial city of Qatar but canceled their plan before Shell became the biggest.

atlwireles:

We can do it, just not under a government lead framework. Allow the African private sector lead, they have proven themselves in Nigeria already with their marginal wells. Lots of small companies doing way better than NNPC in the oil sector.

Rich4god: Nice one... I hope this will improve our economy on the high side and not get abandoned after some period...

atlwireles:

That's what this thread is about. That's why I opened it. Now go and look for a thread for almajirs, janjaw**eed, and Boko haram supporters. Where you can vent your hate and anger.

iamord:


But can you tell me one that is big enough to handle these kind of project . Like how shell does?

PassingShot: "The Escravos GTL project had been severally delayed and capital expenditure on it is approaching $10 billion, according to Chevron.

This compares with the $1.2 billion that was spent on the 34,000 bpd Oryx GTL in Qatar, a similar project in terms of technology and capacity, which was inaugurated in 2006".


It is in GEJ voice not inflation, but ordinary stealing
Please let someone explain what this means.

A typo or what? Inflation or "stealing"?

Anyway, congrats that we're finally getting there.

735i: The same mistakes we made in the '60's we are making again now.
Why on earth should Chevron Nig Limited have 70% stake and NNPC just 15%?
Who is signing off these contracts?