Four years after BG Group divested from Olokola LNG project, two other International Oil Companies, IOC, Chevron and Shell, have pulled out, a source has said.

Both companies have a combined shareholding of 39 per cent in the project, having 19.5 per cent stake each in the company.

According to the source, a senior official in the company, the pulling out of the oil majors is due to a number of factors, ranging from the lack of commitment on the part of the Federal Government to pursue the completion of the project and also the non-passage of the Petroleum Industry Bill, PIB

However, efforts to get the comments of the companies regarding the development, proved abortive, as Mr. Precious Okolobo and Mr. Kayode Adeboye, spokespersons for Shell and Chevron, respectively, refused to respond to enquiries put forward to them.

When contacted, both men promised to respond to the issue, but as at the time of going to press, their responses were yet to be received.

BG Group, the United Kingdom’s third-largest natural gas producer, had in August 2009, said it was pulling out from the LNG export project.

The Olokola LNG project was initiated in 2005, with the Nigerian National Petroleum Corporation, NNPC, as the major shareholder, with 46.75 per cent stake, while BG Group, which had earlier withdrawn, has 14.25 per cent.

The source said the project, which is the most cost-effective LNG project in Nigeria, if allowed to come on stream, would have served as a major contributor to Nigeria’s economy development.

According to the source, a number of projects already undertaken at the site, risk being abandoned, such as the pioneer camp among others.

The source said, “The project was going ahead of schedule, all of a sudden, funding ceased.”

The Olokola Liquefied Natural Gas project is located between Ogun and Ondo States. The project was solidified in 2007 with the signing of an MOU between the shareholders. The plan of the project was for gas producers/owners to send natural gas to the facility where it would be converted to LNG for a fee and pumped into owner ships for sale.

The source said the frustration stems from the fact that many years after the memorandum of understanding (MoU) was signed, nothing concrete has been recorded.

According to the source, the MoU and shareholders agreement were signed in 2005 and 2007 respectively, Final Investment Decision was billed for 2007, while production was scheduled to begin in 2009; till date nothing concrete is seen.

“Presently, all the expatriates have left; the only people remaining are NNPC’s staff on secondment to the company and a few contract staff.”

http://www.vanguardngr.com/2013/08/chevron-shell-pull-out-of-olokola-lng-project/

Another political plant bites the dust.

Why did they not site the project in the Niger Delta? Is it not from the Niger Delta that the gas will come from?

I ''prophesized'' this will happen to that project, back in the days..haha.
https://www.nairaland.com/21679/olokola-lng-niger-delta-question

What the heck are you talking about?
Chevron's main oil and gas field is located in ondo state.
Lagos state is about to start producing oil.
There are gas fields off badagry and republic of Benin .
Olokola is located in ondo state.
So dangote was stupid to site his refinery in olokola too,abi?
Which international corporate entity too you think is stupid enough to site a capital intensive project of that nature again in the niger delta?with the insecurity in the place, do you think it is a strategically smart thing to do?
Why do people just open their mouth without thinking?
MARK MY WORD , IT IS GOING TO GET BUILT AND THERE IS NOTHING AGENTS OF RETROGRESSION CAN DO ABOUT IT.

otokx: Why did they not site the project in the Niger Delta? Is it not from the Niger Delta that the gas will come from?

1. ND is not the only oil producing region in Nigeria, Ondo state where the project was sited is an oil producing state too.

2. Chevron's oil activities is in Ondo state hence their involvement in the project in Ondo state.


3. ND is not the beginning and end of oil in Nigeria, oil id flowing in other regions too and it's about to start flowing in Lagos too.


4. Ondo and Ogon state are building the OK FTZ/Energy hub and a deep sea port to move LNG and other energy products all over the world in the same area.

5. Dangote is spending $8 billion on his Refinery in the same Olokola FTZ

6. Covenant Ground Refinery is building another refinery in the same Olokola (OKFTZ) in Ondo State too.

The FG and the rest of the shortsighted clowns in Abuja can sabotage and play their usual bad bele game, but their failed LNG project is not the only game in town. It's still full steam ahead for Olokola (OKFTZ).

This is going to be the new Energy Capital of Sub Africa and next in line is the Badagry Energy city...



Thank and like me for this wonderful education...

nigeria govt is playing ethnic politics. this is why, it is not the best for nigeria to remain one.

[size=38pt]
since you claim we have no oil. we have told you to be confident and remove western nigeria, where there is no oil now, look at the video[/size]




https://www.youtube.com/watch?v=94eK8HkZNGg

https://www.youtube.com/watch?v=IqZXRDMdZZQ

https://www.youtube.com/watch?v=p-ozQR3us-Q


https://www.youtube.com/watch?v=NO5FblPrIFI

https://www.youtube.com/watch?v=oZiYLN9sM0k

https://www.youtube.com/watch?v=Vel_ylViLJg

https://www.youtube.com/watch?v=yKdqoUL83L0

nothing from that article confirms that chevron and shell have withdrawn from the project only BG withdrawal is confirmed.
read it again.
I am tired of the ethnic lenses that colors everything in nigeria and nigerians. irrespective of where the LNG is built will it not contribute to the development of nigeria?

I don't knw y some people jubilate over economic sarbotage in certain part of d nation, when we knw we will all sufer d effect.
Well since d fed gov has successfully change d mind of General electric from building their manufacturing plant in Ogun state, i knew ds gov is up to something.

ujoinme: nothing from that article confirms that chevron and shell have withdrawn from the project only BG withdrawal is confirmed.
read it again.
I am tired of the ethnic lenses that colors everything in nigeria and nigerians. irrespective of where the LNG is built will it not contribute to the development of nigeria?

Believe me when i say that there are groups actively working against this project out of sheer jealousy .
Instead of articulating an idea and asking the FG to do something's in their regions ,
They start beefing
When we say that nigeria is holding the SW back, we know what we are talking about.
The sheer amount of money being wasted on irrelevant projects around the country show that the people at the helms of affairs do not know the ABC of national development.
This project is capable of earning billions of dollars ,while producing thousands of jobs .
I know that one way or the other, this is going to get built.

Only foools blame their neighbour for their inability to service their wife

bloggernaija:

Believe me when i say that there are groups actively working against this project out of sheer jealousy .
Instead of articulating an idea and asking the FG to do something's in their regions ,
They start beefing
When we say that nigeria is holding the SW back, we know what we are talking about.
The sheer amount of money being wasted on irrelevant projects around the country show that the people at the helms of affairs do not know the ABC of national development.
This project is capable of earning billions of dollars ,while producing thousands of jobs .
I know that one way or the other, this is going to get built.

otokx: Why did they not site the project in the Niger Delta? Is it not from the Niger Delta that the gas will come from?

Read the article. This is not about "site" choice and you should not make it about that. It is about incompetence and lack of will to do what secures progress. At times like this when the problem is identified openly before us, we should not trivialise what is important. We must ascribe blame where stakeholders themselves have told us it belongs.

According to the source, a senior official in the company, the pulling out of the oil majors is due to a number of factors, ranging from the lack of commitment on the part of the Federal Government to pursue the completion of the project and also the non-passage of the Petroleum Industry Bill, PIB

Mods please update us on frontpage with today football matches

@Gbawe,
Hmnn...you sound like one new guy on Nairaland. Did you click on the link I posted earlier on? The whole Olokola thing was founded on corruption.

Anyway, when you're done reading the thread I opened about that project in 2006, come back lets chat.

otokx: Why did they not site the project in the Niger Delta? Is it not from the Niger Delta that the gas will come from?

Such pattern of reasoning is unfortunately the reason why majority of meaningful projects in Nigeria hit the rock. Politicians would then happily loot the mobilization fees.

Sometimes when we consider the type of government we have, all we need to do is just pray that projects can survive till completion instead of raising dust over contentious issues like these.

R

ujoinme: nothing from that article confirms that chevron and shell have withdrawn from the project only BG withdrawal is confirmed.
read it again.
I am tired of the ethnic lenses that colors everything in nigeria and nigerians. irrespective of where the LNG is built will it not contribute to the development of nigeria?

+100. Very good post.

Firstly, it has not been confirmed that they are pulling out.

Secondly, remember what Rotimi Amaechi said in his Hardtalk interview? He said that the oil majors are not pulling out, but are concerned that the PIB has not been passed. It's difficult for them to plan and invest, if they don't know the rules that would guide their operations.

Naija again

Does this mean FORBES didnt research very well before publishing that with the supposedly death of Shekarau foreign investors will be trooping into Nigeria to invest?

Four years after BG Group divested from Olokola LNG project, two other International Oil Companies, IOC, Chevron and Shell, have pulled out, a source has said.

@naptu2,
So, what then is the above saying about Shell and Chevron? - oh okay, because their spokesmen were not on ground to ''confirm'' Vanguard's story? Well.

I don't think Vanguard will publish something like this if there isn't anything concrete to suggest same. But then again, you may be right, anything can happen in Naija.

Obj blackmailed Ibori to secede land to Ondo so yorubaland can be called oil producing state and went ahead to build that LNG to pipe gas from ND.

That LNG will not work cos ondo and ogun has no gas. Obj's second name is injustice.

naptu2:

+100. Very good post.

Firstly, it has not been confirmed that they are pulling out.

Secondly, remember what Rotimi Amaechi said in his Hardtalk interview? He said that the oil majors are not pulling out, but are concerned that the PIB has not been passed. It's difficult for them to plan and invest, if they don't know the rules that would guide their operations.

The stuff in bold, I agree with totally.

otokx: Why did they not site the project in the Niger Delta? Is it not from the Niger Delta that the gas will come from?

1) Is Ondo State not part of Niger Delta?
2) Who said there are no gas reserves in Ondo State?
3) Must all the petroleum-related industries be loacted there?

Get fact b4 you criticize man

ujoinme: nothing from that article confirms that chevron and shell have withdrawn from the project only BG withdrawal is confirmed.
read it again.
I am tired of the ethnic lenses that colors everything in nigeria and nigerians. irrespective of where the LNG is built will it not contribute to the development of nigeria?

I disagree with you. It is the same way almost everything is in Lagos. Today people are being deported from Lagos. Tomorrow Ogun and Ondo will do same. They wont remember it is for the development of Nigeria.

4 dose pple wen nr knw Ondo na Naija Delta. Dere s a Chevron flowstatn cald Opuekeba close to d Atlantic ocean. Na Ondo e dy

agitator:

I disagree with you. It is the same way almost everything is in Lagos. Today people are being deported from Lagos. Tomorrow Ogun and Ondo will do same. They wont remember it is for the development of Nigeria.

Dont mind them. If that Ondo LNG dare pipe gas from ND then I am going to turn a militant ans blow up the pipes myself.

Billyonaire: Obj blackmailed Ibori to secede land to Ondo so yorubaland can be called oil producing state and went ahead to build that LNG to pipe gas from ND.

That LNG will not work cos ondo and ogun has no gas. Obj's second name is injustice.

why is it difficult for some people to come up with reasonable comments?which land are u talking about, u care to share?

Miss becky: why is it difficult for some people to come up with reasonable comments?which land are u talking about, u care to share?

You are too young and too sweet to understand .

otokx: Why did they not site the project in the Niger Delta? Is it not from the Niger Delta that the gas will come from?

Before the war they said the igboman wanted to take over nigeria, now tell what a major gas facility is doing between ondo and ogun? Is it cost effective to transport gas from warri, kparamatu, etc to somewhere between ondo and ogun for conversion into LNG? Deltans should not complain but enjoy the one nigeria.

bloggernaija: What the heck are you talking about?
Chevron's main oil and gas field is located in ondo state.
Lagos state is about to start producing oil.
There are gas fields off badagry and republic of Benin .
Olokola is located in ondo state.
So dangote was stupid to site his refinery in olokola too,abi?
Which international corporate entity too you think is stupid enough to site a capital intensive project of that nature again in the niger delta?with the insecurity in the place, do you think it is a strategically smart thing to do?
Why do people just open their mouth without thinking?
MARK MY WORD , IT IS GOING TO GET BUILT AND THERE IS NOTHING AGENTS OF RETROGRESSION CAN DO ABOUT IT.

Mumu! So u don't know the cause of the insecurity in the ND abi? When the ijaws, urobos, etc can not get a good job in the oil companies where yorubas flood around like parasites, u expect them to fold their hands and watch? The ND especially the ijaws are not cowards and will never allow anyone intimidate them in any way. If not for the insecurity the ijaws emitted on all of u, by now they would have all died of different sorts of diseases.

It's all down to viability. Truth is LNG is yesterday's news. The world has moved on. Nigeria's biggest LNG project (Brass LNG)has been stuck in phase 2 (called Train 2) when it was planned to have 4 trains. The multinational oil companies are also involved in that project.

The price of LNG collapsed on the world market a few years back, and though it has improved a bit, new gas discoveries have been made in many more countries (including East Africa)thus meaning there are more supply sources. Paradoxically, much of Nigeria's gas can't be sold locally due to low domestic prices.

With LNG no longer in hot demand (as it was when Olokola and the other projects were planned), and no viable domestic market, any surprise investors are pulling back. Investors are hard-nosed profiteers. They are no mugs.

To compound LNG's problem, there is the phenomenon that is shale gas, which is reshaping America's (and soon the world's) energy market. With the discovery of shale gas, LNG prices in America are so low that if you got a ship-load of Nigerian LNG for free, and ship it to the US, by the time it arrives there, the cost of shipping alone will ensure that the 'free' LNG will still be almost as expensive as the current cost of LNG in the American market.

As far as LNG is concerned, OLOKOLA IS DEAD. It's not politics. The project, and others in Nigeria simply are not adding up anymore. What to do is to keep it alive for other industries, and the proposed Dangote refinery is a good step. It can become a cluster for allied petrochemical, plastic, and other industries. It can still achieve serious success.

What we should be doing as a country is seriously looking at rebalancing the economy away from its over dependence on oil. But when you have a political class whose sole desire is to loot, there is no hope of any such rebalancing happening. They are simply not interested.

Ever wondered how much energy, resources, and valuable time this Presidency was spending on Amaechi and PDP's political machinations in Anambra? You get it! Their own personal financial considerations are far more important to them.