Published 20th September 2006
The four shareholders of Brass LNG Limited today signed the Shareholders' Agreement for the Brass LNG Project. The shareholders are Nigerian National Petroleum Corporation (NNPC), ENI International, Phillips (Brass) Limited (an affiliate of ConocoPhillips) and Brass Holdings Company Limited (an affiliate of Total). The Shareholders' Agreement regulates the manner in which Brass LNG Limited will undertake the project for the construction and operation of two liquefied natural gas (LNG) trains at Brass in Bayelsa State and the delivery of LNG to the Atlantic Basin gas market.
The contract for the Front End Engineering Design (FEED) for the project was awarded to Bechtel Corporation; a San-Francisco USA based engineering company, in November 2004. Brass LNG Limited has continued to progress FEED work towards completion, through optimizing FEED designs, preparing the scopes of work for the award of Engineering Procurement and Construction (EPC) contracts and pre-qualifying contractors for the EPC activities.
The Company has completed the prequalification process and has invited pre-qualified contractors for early works and site preparation to bid for these works. Brass LNG Limited is poised to invite pre-qualified contractors to bid for the rest of the EPC works.
Brass LNG Limited plans to make its recommendations for contract awards for the majority of EPC work soon, in preparation for shareholders to take a Final Investment Decision for the EPC phase of the project as soon as practicable thereafter in 2007
Memoranda of Understanding have been signed with six buyers for the sale of the entire LNG production of the first two trains of the Brass LNG facilities. The fully termed sale and purchase agreements are being negotiated with buyers with a view to signature by the end of 2006.
An Environmental Impact Assessment (EIA) study of the project has been completed. Brass LNG Limited has received provisional approval from the Federal Ministry of Environment and the Department of Petroleum Resources to enter the construction phase of the project.
Brass LNG Limited has taken a proactive stance to engage the communities, holding several stakeholder workshops, conducting an education and enlightenment campaign and sponsoring capacity-building initiatives.
The Group Managing Director of the Nigerian National Petroleum Corporation, Engineer Funsho Kupolokun commented that "Government considers Brass LNG fundamentally a sound project with an excellent value proposition and confirms that it is at the centre piece of the Nigerian Government's efforts to efficiently monetise its Gas resources."