₦airaland Forum

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Petroleum Corporation, NNPC, as the major shareholder, with 46.75 per cent stake, while BG Group, which had earlier withdrawn, has 14.25 per cent.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.

Chevron, Shell pull out of Olokola LNG project

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

After, reading all the comments here, my soul is at peace. Nigerians have begun to think with their heads. Nothing is wrong with 40,000MW in 4-8 years, but as most people have already said, TALK IS CHEAP.

[quote author=Kay-Dee]Says who ? Many employed Nigerians pay taxes. Most businesses pay taxes too. You may not see it on your grocery receipt as 'tax' but they get it back from you through that N1 or N2 hike in prices.

The problem is mismanagement of resources and corruption.[/quote]What resources the $27B Federal budget in a country of 160M people Corruption has become the new word for laziness in Nigeria.

pro01: Is it justifiable (or at least possible), then, that Nigeria has an unwieldy number of dollar billionaires with so much wealth and yet so little economic output? This is one reason why some cynics scoff at the likes of Dangote and other so-called billionaire entrepreneurs, not to mention pretenders like Folorunsho Alakija and countless other profiteers.. The economy does not seem to be broad and deep enough to make genuine Forbes-rated wealth possible -without underhand dealings. and shady business practices.

Since we're so poor, is it not ironic that there is a disproportionate number of stupendously wealthy individuals in the country? Relatively low earnings/budget/GDP, yet so many wealthy individuals, yet extremely low employment rate - what Pat Utomi referred to as a "jobless growth economy". Is there a valid explanation for this, other than that Nigeria is essentially a rentier state in which a few privileged and well placed parasites harvest the collective wealth while disguising as "entrepreneurs"? Questions, quesrions.

If our annual budget is indeed a mere $27b give or take , I find it difficult to understand why Nigeria's richest man (Dangote) should be worth up to $20b. America's annual budget is in the $$ trillions, while its richest man (Bill Gates) is worth $60something billion - an infinitesimal fraction of the country's budget. Perhaps you guys could attempt a quick survey of the richest men in other countries and compare their networth with their countries' annual budgets.

The Nigeria state(government) is poor. This is quite different from Nigeria as a country. People look to the government for all their need, yet refuse to pay their fair share in tax. If Nigeria were able to collect just 50% of VAT on all goods and services in Nigeria. Our vat will be $50B or more. All we do today is wait for 2.5M barrels of crude oil and budget from there. Check the per capital taxes paid in Nigeria. The federal budget of $27B will make more sense then.

Maybe the, some of us should rethink the phrase, Nigeria is a very rich country. We are not. We never were.

Symphony007: and you think investors will come into a country as uncertain as nigeria to dump billions without substancial assurances that there will be a profit. It does'nt work like that dear. This country has the money to fund a high speed rail network from lagos to p.h and when investors see how much profit is being made, they will be in line to be partners in the next phase, lagos-kano and they will pay through their nose to own the existing lines. That is how you encourage investment in an uncertain environment. And that goes for everyother part of the nigerian economy.

I was watching a BBC documentary "why poverty" and they showed the nigerian minister for agriculture having a meeting with potential investors in our agric sector. When they finished and the investors were interviewed they replied, "he was all talk and no proof". "he spoke so eloquently on the need for us to invest but there was nothing on ground for us to build on, we need a foundation, no investor will throw money into a mirage".........that speaks volums my dear.

If you have the funds needed, help lagos state finish their rail project or Rivers state. Where funding is becoming a very serious issue, mostly the lack thereof. See, if you make any profits or not. Show me one multinational company in Nigeria loosing money? Talk is cheap, but you have to put your money where your mouth is.

Symphony007: If you bought a nokia 3310 today in a world were smart phones are the norm, will that be a cause for you to celebrate or beat your chest about?

So it is with the recent rail revitalization project of the jonathan administration, in a world of high speed rail lines, the jonathan government has spent and is still spending billions of naira on rehabilitating colonial era rail tranks and buying "LOCOMOTIVES" to run on them.

Recntly, the lagos-kano rail line was opened and the nigerian government beat their chest to the world that the nigerian rail sector is back so as expected BBC world news came to withness the new wonder of the world. BBC reporter komla dumor took a train ride from lagos to kano and it took him 22 hours to get there and the coaches were crowded and hot. One commentator called it a "cargo train". And it raised questions about how a country that aims to be an economic powerhouse have such a disfunctional internal transport system? How is it possible that it takes more than a whole day for people,goods and services to move within a country the size of califonia plus texas.

Nigerias don't deserve 20th century locomotives. Nigeria deserves a high speed rail network connecting essential cities. This is the approach this government should have taken. All the money being spent currently could have gone a long way combined with investments from the private sector to fund a high speed rail network from port harcourt to lagos and kano. Even if the government could not find foreign or local private investment, this country can afford to fund such a project by itself. Can you imagine the possibility of travelling between port harcourt to lagos in 3 to 5 hours, can you imagine living in ogun state and working in lagos? Imagine what that will do for the economy, the fast and mass movement of people, goods and services, the relief on nigerian roads, even the massive revenue it will bring in for the government.

Now, my all i have articulated above are open to debate. But they are my candid feelings on the "transformation agenda"...the jonathan administration is all over the place and that has made pointing at a specific area and say gee, they have really tried in this area. It's sad due to the high hopes nigeria had for the guy with fresh air.

There are hundreds of projects, waiting for private capital in Nigeria. That capital, people like you think grows on tress, but they are nowhere to be found. Petrol chemical complex, Gas plants, Power plants are still waiting for billions of Naria of investment. The railroad you seem to like trashing is open for private investments. You and your equity partners can build a bullet rail system across the country, nobody is stopping you. Government is not made to do everything.

Biodup: Can you imagine this thief still dey smile.

Did he declare this monies in Nigeria answer has to be no. Over to oga custom for explanation.

sobastical: Talking Lubbish!

This man wants to become the gov of delta State? Not in this life time. We need a proven private sector manager after Uduaghan . No more political hacks. This state boasts some of best men in Private business in this country. This is time for them to step up and take the mantle of leadership from these political jobbers.

danjohn: In a popular vote system, you need to win votes everywhere. In 2011, GEJ won over 300K votes in Sokoto and over 290K votes in Gombe. The number of people voting is not what counts in a popular vote system, what counts is the margin of victory. Below are the margins of victory in each region in the 2011 election:

Northwest: Won by Buhari by 3,057,713 votes
Northeast: Won by Buhari by 1,792,297 votes
Northcentral: Won by Jonathan by 1,631,995 votes
Southwest: Won by Jonathan by 2,464,808 votes
Southeast: Won by Jonathan by 4,964,911 votes
Southsouth: Won by Jonathan by 6,068,630 votes


If you look at the above you would see that the margin of victory in the SS and SE are the widest because CPC and ACN were not formidable second place finishers in those regions. APC cannot win a Presidential election if it plans to get 2% in the Southeast. I attached a model for you to analyze the result.

Why is your margin of victory in the south south so close? 17% for APC not possible.

Just read the story, if truth, my respect for Jonah and his wife just went up 100000%.

[quote author=Jingo-OAU]And you are staying in the same western region, enjoying every fresh air of the progressive achievements, never minding the cave or region you came from.....[/quote]THIS IS THE PROBLEM WITH SS2 DROPOUTS. THEY CANNOT READ, HOW DID YOU KNOW I LIVE IN LAGOS

YOU DON'T HAVE TO SAY ANYTHING. THE SIMPLE TRUTH IS, YOU ARE NOT GOING TO WIN PERIOD!!!!. FASHOLA HAS SUCCEEDED IN MAKING HIMSELF NOT ELECTABLE ANYWHERE IN NIGERIA, THAN HIS WESTERN REGION.

Tolexander: show us how the countries that formed the defunct USSR are better than the USSR!

I don't need to show you anything. Google should do a better job for you.
Lithuania,Estonia,Latvia,Georgia,Ukraine,Belarus,Moldova,Azerbaijan,Kyrgyzstan,Uzbekistan,Tajikistan,Armenia,Turkmenistan, Russia,Kazakhstan. Please review all this new countries, some less than 25 years. They have all done better politically, economically and socially than they did in the USSR. Nigeria will do the same. The only thing, we have to fear is fear itself. You know deep down in your heart, that Nigeria is failed state, why pretend otherwise.

So many smart people in this country, yet 90% of them live on 3 dollars or less per day. They are so smart, yet 85% of them are still unemployed because they lack the content represented on their paper degrees. Nigerians mouth and yabish don kill una finish.

Breaking the country up will give us the new beginning we seek. USSR was a great country, but the Nations it birth are even greater. Look at the former Yugoslavia, even the Serbs today are happier. Nigeria is hell for all its people. The Yorubas will do better in their new country, the Hausa/Fulani, the middle betters, Igbos and the south south might even end up as 10 new countries. But their people will all be happier. Nigeria is not working for any of us. We should have enough courage to admit it.

Dieziani Allison-madueke keep on rolling, bad belle go kill all your detractors. There is no need to worry about any report from the southwest media. They are always bought and paid for by their masters.

Very impressed by this imam. People must learn to stand for something.

bloggernaija: Once nigeria ceases to exist,nor you get your biafra ,everybody would have to go to him papa land and that is a fact.

I think we should all pray for the end of Nigeria. This hell is not worth all the noise.

I have as most deltans cursed this man Uduaghan for 4 yrs plus. Things are changing and they are looking better in the state now. He seems to have remembered why he was elected in the first place. I only hoped, he did not spend his previous 4yrs plus doing nothing. Please keep up the tempo of service. Also tell your press people to stop lying about projects. Start complete and take credit for well done jobs.

PECO4KING: Let base our argument on scale of preference .

1.) Good road
2.) Good airport
3.) Stable power supply
4.) Employment
5.) Fight against terrorist
6.) Agriculture
7.) Fight corruption
8.) Good Refineries

Which one do you think come first and which one is the last from the above listed.

any can come first or last

take dat: Does the occupier of the Presidency have any value for me? Is he not promoting his own selfish interest and that of his cronies? I dey follow am chop N1billion food?lol!

You just made my point, so let's allow Abati do his job.

take dat: And those ones too will strip the Presidency bare, and flog it out in the open. Who has more prestige and image to Protect?

What prestige Do you have any value for the current occupant of the Presidency

plaindealer: Still, you lost the moral ground not only for responding with the same likewise insults, buit also for using the same insults and gutter language on Nigerians and other oponents.

This is not a communist country where you gag and lock people up for petty words against your poor performance. The kindergaten president should just shut and stay presidential.

Responding to every little thing is nothing but guilty conscience, pettiness an lack of focus.

There is no moral ground in Nigerian politics, it took Jonah and PDP almost 2yrs to find this fact out. A Nigerian politican insults you, insult their parents. If he slaps you, you cut off his hands. That is the only thing Nigerians understand. So Abati MUST strip the old man Akande naked in public the next time, his tongue refuse to count his teeth..

These are some of the best days in Nigeria. Now we all know, where we stand. No more pretending and some fake political alliances. God, please hasten the division of this hell you call Nigeria, so we can all find our ways. God bless Fani and Falana for saying, what most of his tribesmen would not say in public.. Only a mentally sick person will invest a penny in Lagos after all this and not make plans to begin sell their assets. Nigeria will end, there's just no two ways about it.

bisi16: He was bad, but I must giv him d credit 4 pegging d dollar at N86. It neva went beyond dat until d Abdulsalams, baba Iyabos and ofcos, d dum dum 1, Jonathan himself came along. Well credit still goes 2 Obj for our GSM of 2day, tho Abacha started it. Dnt get me wrong peeps, am no Abacha fan but giv credit 2 whom it is due. Peace out!

Pegging the naria is not the price. What was the price in the black market. That is the real price of the naria.