₦airaland Forum

larryUG:
It is obvious that you and the people who liked your comments dont know how these things work.

2 billion dollars will be invested, but all the money does not come from Shell Alone. It is a contribution between all parties that own interests in the block. The sharing formula will also be the same when the revenue starts coming in, and on top of that Royalties will be paid to the government.

In a JV system where NNPC owns 60% interests, NNPC will contribute 60% of the development cost (assuming it is this $2bn) and also earn 60% of the profits (assuming it is your $100bn figure to be earned).

Shell is a foreign company, that's the point and bulk of the profit goes back to the country for resources indigenous companies could have tapped and retained the wealth in Nigeria...

Brendaniel:
Shell is a foreign company, that's the point and bulk of the profit goes back to the country for resources indigenous companies could have tapped and retained the wealth in Nigeria...

Ok. Engaging you in this discourse will not be productive. The foreign company paid money to acquire the field, paid money to explore and discover the field. after spending money on exploration and drilling, you dont want them to make profits. Which local company has come out to explore oil and the government stopped them? Do you think it is easy to explore for gas offshore and develop it? Man, let me not continue this convo with you. It is pointless

larryUG:
Ok. Engaging you in this discourse will not be productive. The foreign company paid money to acquire the field, paid money to explore and discover the field. after spending money on exploration and drilling, you dont want them to make profits. Which local company has come out to explore oil and the government stopped them? Do you think it is easy to explore for gas offshore and develop it? Man, let me not continue this convo with you. It is pointless

Wouldn't it have been better if it was an indigenous company?

Brendaniel:
Wouldn't it have been better if it was an indigenous company?

Start your company and explore for the oil/gas yourself. Or work with other established indigenous companies and explore for the resource. No one is stopping you. Please dont tell me about you applying to Govt for loan. That is bullshit.

larryUG:
Start your company and explore for the oil/gas yourself. Or work with other established indigenous companies and explore for the resource. No one is stopping you. Please dont tell me about you applying to Govt for loan. That is bullshit.

So you are saying it is bullshit for the government to support indigenous companies with loans for oil and gas exploration?

Tinubu na baba. Another gbas gbos to the wailing wailers and the coalition of bandits and serial losers.

Governors, Senators, Honorables are defecting to APC in droves. And some agalu fraudsters with tiny voices and a midget from another planet are dancing all over the town celebrating their impending loses.

No be juju be that....

But don't Shell have other gas supplying unit? They can simply rechannel from any of the other ones na, abi I am missing something?

larryUG:
T7 will be finished much earlier than this. Once T7 comes onstream, any of the parties that signed gas supply agreements with them (Shell, Total Energies, NNPC, Eni) and does not meet up with supply obligations will pay penalties. HI will not be commissioned till 2028. It is HI & Ubeta that are supposed to feed T7. The other existing gas fields are feeding Trains 1-6

9jatriot:
But don't Shell have other gas supplying unit? They can simply rechannel from any of the other ones na, abi I am missing something?

Yes you are missing something. The other gas supplying 'Units' are already supplying gas to Trains 1-6. if they channel it to T7, they will stop meeting those obligations to T1-T6 and will start paying penalties. So the way it works is that if you will have a new LNG train, then you will have a new gas supply plan. if you plan to use existing facilities, then you will need to expand those to get more gas. That is the way it works

Brendaniel:
Investing 2 billion dollars to drill more than 100 billion dollars of your natural resources for their benefit...

it is well

Guess why they with their home governments will not want Nigeria to split into more manageable countries; the millions of Nigerians being killed due to imperfections of one Nigeria not withstanding.

If Nigeria were to be an European country, Nigeria would have split many years ago.

Brendaniel:
Investing 2 billion dollars to drill more than 100 billion dollars of your natural resources for their benefit...

it is well

How do we solve the problem?

AuthegaPRIMUS:
How do we solve the problem?

Government should support indigenous interests

So they have returned?shell from hell are really pretenders.i thought this trouble makers have gone for good or abi ,they thought we will beg them

CodeTemplarr:
Yekini be like "waaoooh. The investors are coming back. I am sagacious!"
They left petroleum and entered gas.

Let them enter any SECTORS,the Investors are Welcome back to Nigeria.
In actual Facts - they did not go because Nigeria has what it takes to Make Nigeria Great Again;

I dnt know jack about all this happening... Omoh, some ppl are really informed ooo..

I hail my people!!!?

larryUG:
I disagree. it is not a Fraud. You cannot compare T7 to Nigerian refineries and it could not have been there at Bonny since Abacha's days.
You are mistaken on this one sir

Different Government have talked about this yet ...Budgets has been passed year in year out it's still not working yet ..
It's part of the fraud going on in NLNG.. ..
Just like refinery in NNPC and Pengassan

Lanruze:
This new investment is a birth of the PIA initiated by President Muhammed Buhari.

The credit goes to late PMB and not PBAT.

The unbundling of roles, responsibilities and tasks of the Upstream (Exploration), Midstream (Refining) and Downstream (Distribution) has made investments more attractive in the Upstream sector.

Shell had announced this investment since last year with a total of $5B but has just concluded the first tranche of the $2B. This investment has been captured as an FDI inflow since last year.

Them go whine you (Propagandist) but please no panic.

The OBJ government created PIA; GEJ sat on it, but credit goes to Buhari for putting it into law. However, it was the Tinubu government that enabled the law to work, with the removal of oil subsidies and generous packages for investors. The reason Shell is investing in gas is that it will acquire a majority stake of 51%.

Brendaniel:
Can't your government loan me the 2 billion dollars so that I do it and retain the money inside Nigeria instead of exporting it to another man's land?

based on the one wen your papa dash the government na. Awon entitlement mentality.

FreeStuffsNG:
Shell sold its assets to Nigerian players to raise the money and FG insisted that they invest the raised funds in Nigeria.
It's a win-win for everyone.

Nobody insisted on anything for the money to be invested in Nigeria, please stop spreading false info. The truth is, gas is the future, and Europe needs gas from Africa so it can get rid of Russian gas.

EdiskyHarry:
Putin was right when he said that Nigeria is a branch of British investment.
Nigeria is a failed nation.

And when Putin was selling gas and is still selling gas directly to Europe through his pipeline, he was not right to say that Russia was a European investment Abi. You people can be so easily deceived I don't know why. It is now that Europe is trying to get rid of Russia's oil and gas, and they are now turning to Africa as their new market, that destructive elements are now trying to take Africa backward with their witchcraft mentality, like this. It's such a shame that Africans cannot really tell who their real enemies/competitors are. Russia is our biggest competitor and enemy at the moment.

fxexperts:
based on the one wen your papa dash the government na. Awon entitlement mentality.

Nobody insisted on anything for the money to be invested in Nigeria, please stop spreading false info. The truth is, gas is the future, and Europe needs gas from Africa so it can get rid of Russian gas.

Smh.

You really think NUPRC is playing or FG will sit idly and watch them divest, repatriate the funds away from Nigeria elsewhere while we continue to shop for investors. You are obviously naive about these things. You think it's Nigeria of 1940s abi?

Even Seplat was caught in the crossfires when NUPRC insisted that the divesting IOC must part with a significant chunk of the funds to Nigeria, couched in remediation,before NUPRC can approve the deal.

Go and read what EU is now brazenly planning to do in order to forcefully steal Chinese technologies. Gas kor Goat ni. Nobody has come to play like you o.

fxexperts:
based on the one wen your papa dash the government na. Awon entitlement mentality.

Nobody insisted on anything for the money to be invested in Nigeria, please stop spreading false info. The truth is, gas is the future, and Europe needs gas from Africa so it can get rid of Russian gas.

So Dangote papa dash government money wey e collect over 3 billion dollars loan from the same government abi?

GUNITGuy:
Train 7 just like Nigerian refinery
It's just an another fraud ...
It's been there at Bonny tight from Abachas days ...
Let them keep to train 1 may be 3

. Maybe in your mind, Train 7 is just like those trains that used to carry goods from one location to another, that is why you are saying this, the mentality is really something else. Please stop spreading false information. Train 7 is a plant they want to build to process gas for sale and the projects was just recently awarded and construction has started and it will soon be completed just like Train 1 - 6 which was built over 20 years ago, and by far it is still functional to date, and it is the only profitable business in Nigeria been owned by the NNPC.

GUNITGuy:
Different Government have talked about this yet ...Budgets has been passed year in year out it's still not working yet ..
It's part of the fraud going on in NLNG.. ..
Just like refinery in NNPC and Pengassan

, NLNG is not solely owned by the government of Nigeria. Please stop spreading lies, because most GENZ here will read your comment and believe it. It is better that you don't comment on stuff you have no knowledge of, because misinformation is worse than ignorance. Never at any time budget was passed on the Train 7 project; it was even Buhari who signed the FID for the Train 7 project, and the aim of the project was to increase the production capacity of the NLNG plant from 22 to 30 MTPA of LNG. And also at a time when Train 1 and 2 will soon be decommissioned. If the previous government talked about it does not mean they budgeted money for it. I know every year you or your parents can talk about buying a car does that mean you budgeted money for the car? The year you will finally buy that car or start building that house that is when you will start budgeting money for it; otherwise, you may only be saving money for it Plus, Train 7 is not an NNPC investment alone; Shell, Total, Exxon Mobil, AGIP all budgeted money for the construction of the train 7 project because they are all part owners of NLNG. So be informed, bro.

FreeStuffsNG:
Smh.

You really think NUPRC is playing or FG will sit idly and watch them divest, repatriate the funds away from Nigeria elsewhere while we continue to shop for investors. You are obviously naive about these things. You think it's Nigeria of 1940s abi?

Even Seplat was caught in the crossfires when NUPRC insisted that the divesting IOC must part with a significant chunk of the funds to Nigeria, couched in remediation,before NUPRC can approve the deal.

Go and read what EU is now brazenly planning to do in order to forcefully steal Chinese technologies. Gas kor Goat ni. Nobody has come to play like you o.

You people just keep spreading lies. There is a huge difference between Remediation and investing. It is the duty of the IOC to remediate the damages they have already done to the environment, and projects should be properly decommissioned after expiration, even the pipeline they lay on the soil; they are supposed to remove every piece of it and ensure the soil is tested to confirm every impurity they left there is removed. It has nothing to do with keeping the proceeds here, or if they can confirm that Seplat will be the one to bear the cost of remediation of the environment. Shell's decision to invest in HI and Bonga is all about strategies to boost gas sales to Europe, nothing more.

Brendaniel:
So Dangote papa dash government money wey e collect over 3 billion dollars loan from the same government abi?

Dangote is a name they can trust, so what about you? Do you have a name they can trust? If I ask you to borrow me just N1M, let me use and invest in your village, will you do it? Even Nigerian commercial banks will borrow Dangote money because they know they will get it back.

fxexperts:
You people just keep spreading lies. There is a huge difference between Remediation and investing. It is the duty of the IOC to remediate the damages they have already done to the environment, and projects should be properly decommissioned after expiration, even the pipeline they lay on the soil; they are supposed to remove every piece of it and ensure the soil is tested to confirm every impurity they left there is removed. It has nothing to do with keeping the proceeds here, or if they can confirm that Seplat will be the one to bear the cost of remediation of the environment. Shell's decision to invest in HI and Bonga is all about strategies to boost gas sales to Europe, nothing more.

Again I repeat. You're being naive

Brendaniel:
Shell is a foreign company, that's the point and bulk of the profit goes back to the country for resources indigenous companies could have tapped and retained the wealth in Nigeria...

Which indigenous comapny, company and country that cannot tap this same crude or gas, do you know that Nigeria has been falring this gas since God knows how long. which means we have been burning it, poluting our environment causing global warming without any impact to our life.

Brendaniel:
Wouldn't it have been better if it was an indigenous company?

Which indingenous comapny?

Brendaniel:
So you are saying it is bullshit for the government to support indigenous companies with loans for oil and gas exploration?

Indingenous company do not have the tecnical know hopw neither do they have the skill to do so. Neither do they even want to learn, corruption has finsished us alot. If governmnet decideds to fund them with such loan, the project will never be completed. they will completely siphone the money through corruption.

FreeStuffsNG:
Again I repeat. You're being naive

Again, I repeat, you are the naive one here. Oil and gas exploration is my field, where I have worked for over 15 years now. So if I am commenting on an issue around there, you should not be talking. You didn't know what was going o,n but people like us in the field then knew everything.

Read link below for more. Google is your friend.
https://www.thisdaylive.com/2022/03/28/responsible-oil-production-and-decommissioning/

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4103807

If you read the paper above, you will know that we have no single regulation to hold these guys accountable for any liabilities prior to 2023. Only the PIB, we were warned by the UK and co on having this issue of abandonment of assets. This next paper will only tell you that it was incorporated in 2023. How does a law of 2023 affect an asset built in the 1980s? Those guys were running away because they did not want to bear the cost of decommissioning.
Read this next paper to see that decommissioning was only introduced in 2023 after a lot of international warnings and outcry from concerned Nigerians like myself, who understand the oil and gas exploration sector.

extension://mjdgandcagmikhlbjnilkmfnjeamfikk/https://www.nuprc.gov.ng/wp-content/uploads/2023/07/DECOMMISSIONING-REGULATIONS.pdf


Read below.

Does the recent divestment round by the IOCs change anything?

Recently, International Oil Companies operating in Nigeria have been divesting from their onshore and shallow water assets. In the last decade alone IOCs have exited their ownership of 26 Oil Mining Licenses. Shell Petroleum Development Company (SPDC) has parted ways with OMLs 4, 17, 18, 29, 38 and 42. Chevron has sold its shares in OMLs 83 and 85 with further plans to sell OMLs 82, 86, and 88. Total has also made plans to let go of its Nigerian Onshore and Shallow water projects. Recently, Exxon Mobil announced that it plans to sell its entire Nigerian shallow water and onshore portfolio to Seplat Energy. It is a move that has attracted the intense attention of the Nigerian National Petroleum Company (NNPC).

One of the biggest concerns industry stakeholders have about the divestment strategy being executed by International Companies is the question of responsibility. Oil production comes with environmental degradation. Nigeria has not been without its fair share of oil spills over the years. According to the National Oil Spill Detection and Response Agency there were 4,919 oil spills between 2015 and March 2021. Many of them are yet to be properly cleaned up, and their sites are yet to be completely remediated. Oil companies have a duty to execute these projects but what happens when there is a change of ownership? Does the liability remain with the original facility operator or is it transferred to the new owner of the oil field? In addition to this who bears the cost of the decommissioning of the asset, the new owner or the old owner? Clarity is needed on historic operator liability and current operator liability for decommissioning.

There are many fields in Nigeria that require immediate decommissioning or will do so in the near future. The federal government must shed light on where the financial liability lies and impose on the liable party the duty of investing in the activities required to achieve responsible oil production and effective decommissioning.

Around the world there is evidence of provisions international oil companies make towards ensuring the safety of the environment. The same measures should be applied in Nigeria as well. If there have been funds set aside for environmental remediation and decommissioning then stakeholders have the duty to audit the application of the funds.

Lanruze:
Lol...

I am above 50 you hear. He passed it into law since you get my drift you are the Gen Alpha.

You mean the watered-down and edited version that PMB passed into law is what you are celebrating. We really have a lot of ignorance in this country.

Ikpongiton:
So they have returned?shell from hell are really pretenders.i thought this trouble makers have gone for good or abi ,they thought we will beg them

Abeg read well, the never sold their deep water asset, only the onshore assets so they can run away from any responsibility of decommssioning the assets and also community problem and crude oil theft that was reducing their profit and cost of operation. So they were still very much in Nigereian watser and even also owning over 25% of NLNG gas.

[quote author=fxexperts post=137132517][/quote]Smh.
Now I see why . You push files around and don't have experience on national policy and strategy.

What I am enlightening you on is above your pay grade

fxexperts:
Dangote is a name they can trust, so what about you? Do you have a name they can trust? If I ask you to borrow me just N1M, let me use and invest in your village, will you do it? Even Nigerian commercial banks will borrow Dangote money because they know they will get it back.

Good response, I like how you you answered this, the only issue I have is Nigerian government not supporting indigenous startups the way they should and that's my point, so nothing like entitlement mentality like you posted earlier.

fxexperts:
Which indigenous comapny, company and country that cannot tap this same crude or gas, do you know that Nigeria has been falring this gas since God knows how long. which means we have been burning it, poluting our environment causing global warming without any impact to our life.

Which indingenous comapny?

Indingenous company do not have the tecnical know hopw neither do they have the skill to do so. Neither do they even want to learn, corruption has finsished us alot. If governmnet decideds to fund them with such loan, the project will never be completed. they will completely siphone the money through corruption.

You are just castigating indigenous companies like you have dealt with them before on a genuine aspect, when you hear indigenous companies misbehaving or under performing when given support by government is because they give it to cronies who some don't even have any business to do with what they were given the support for or are either not held accountable by their fellow cronies in power and this still boils down to the government itself.

So for you to blame indigenous companies and leave the government who is the cause for doing corruption with the support then you are just being biased.

If genuine and capable indigenous people tell you how much they have tried to get some of these issues you wrote done with the help or approval of the government and were refused because of the same corruption I talked about, you may start weeping for the country...