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Nigeria LNG Limited

FACTS & FIGURES ON NLNG

2011

FACTS & FIGURES ON NLNG 2011

FACTS & FIGURES ON NLNG 2011

FACTS & FIGURES ON NLNG 2011

FACTS & FIGURES ON NLNG 2011

Contents
7 15 21 27 33 39 51 59 67 77 89
The Company Management Profile The Plant Gas Supply Commercial Shipping Financing Nigerian Content The Environment Community Relations & Development The Nigeria Prize for Science and The Nigeria Prize for Literature

Vision

a global LNG company helping to build a better Nigeria.

Facts and Figures on NLNG is an annual compendium of facts about Nigeria LNG Limited. This publication is produced by the Corporate Communications and Public Affairs Department of Nigeria LNG Limited. All correspondence to: Yemi Adeyemi, C & C Building, Plot 1684 Sanusi Fafunwa Street, Victoria Island, P.M.B. 12774, Lagos, Nigeria.Phones: +234-1-2804000, 4634000, 08039074000. Fax: +234-1-2616976. E-mail: yemi.adeyemi@nlng.com. Website: www.nigerialng.com Design: Design Services Bureau Limited. Production: Wahabro Inter-Link Limited

FACTS & FIGURES ON NLNG 2011

TheCompany

FACTS & FIGURES ON NLNG 2011

FACTS & FIGURES ON NLNG 2011

THE COMPANY

THE COMPANY

Our Mission Statement


To market, produce and deliver liquefied natural gas liquids to buyers safely, reliably and profitably, growing our company and its people to their full potential, and being a trusted partner with all our stakeholders in the sustainable development of Nigerias gas industry and of NLNGs host communities.

igeria LNG Limited (NLNG) is jointly owned by Nigerian National Petroleum Corporation (49%), Shell (25.6%), Total LNG Nigeria Ltd (15%) and Eni (10.4%). It was incorporated as a limited liability company on May 17, 1989, to harness Nigerias vast natural gas resources and produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for export.
The company has a whollyowned subsidiary: Bonny Gas Transport (BGT) Limited. Our Vision
Nigeria LNG Limited will be a global LNG company renowned for its operational excellence, cost leadership, high HSE standards, honesty and integrity. We help to build a better Nigeria by processing, shipping and marketing efficiently and profitably the countrys gas resources and by putting out the flares, thus diversifying the economy and minimising the environmental impact of our activities and products. We will set the standards in community relations and technology transfer, and actively promote the sustainable development of Nigerian businesses. We will provide to our shareholders a good return on their investment. We will provide an exciting and fulfilling place to work and the opportunity for staff to develop their potential. Finally, we will execute and operate our business in Nigeria with an international outlook and mindset.

Bonny Gas Transport Limited Bonny Gas Transport Limited was established in 1989, following the incorporation of Nigeria LNG Limited, to provide shipping capacity for NLNG project. The company was set up with an ordinary equity holding from Nigeria LNG Limited and preferential equity holding from the sponsors, NLNGs shareholders.

NLNG Ship Manning Limited NLNG Ship Manning Limited (NSML) is another wholly-owned subsidiary of NLNG. The company was set up in 2008 to realise NLNGs vision of resourcing, development and management of shipboard personnel for BGT vessels.

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THE COMPANY

THE COMPANY

Shareholders
Nigerian National Petroleum Corporation (NNPC)
Nigerian National Petroleum Corporation was established in 1977 under the laws of the Federal Republic of Nigeria. It is the corporate entity through which the Nigerian government participates in the oil and gas industry. NNPC and its subsidiaries dominate all sectors of the industryexploration, production, refining, pipelines, marketing, crude/product exports, and petrochemicals. NNPC owns 49% of the shares in Nigeria LNG Limited.

Total LNG Nigeria Limited


Total is a major integrated oil and gas company active in all sectors of the petroleum industry. Total operates in more than 130 countries and has proven reserves of 11.15 billion barrels of oil equivalent. With more than 60 years of natural gas experience, Total is the worlds fourth-largest listed gas producer. The company is Nigerias fourth-largest oil and gas producer through its involvement in more than 50 permits, including nine as operator. Total owns 15% of the shares in Nigeria LNG Limited.

Our People
Nigeria LNG Limiteds workforce comprise direct hire staff, supported by secondees from shareholder companies, working together to achieve the companys corporate objectives, through a set of Shared Values. Direct staff are recruited after a rigorous interview following the advertisement of vacancies on the companys website and in national newspapers. Employment and appointments are made on merit, based on academic qualification, relevant work experience and competence. The shareholders appoint representatives to the Board of Nigeria LNG Limited . To execute the decisions of the Board is a Senior Management Team (SMT). Supporting the SMT are the Extended Management Team (EMT) and over 1,000 quality staff.

Shared Values
Integrity Teamwork Excellence Caring

Shell Gas BV (SGBV)


Shell Gas B.V (SGBV) is a company incorporated under the laws of the Netherlands. For more than 40 years, Shell Gas has been investing in and delivering some of the worlds largest and most complex gas projects. Besides its interest in Nigeria LNG Limited, Shell Gas holds the largest equity share of LNG capacity among international oil companies, with a leading position in LNG shipping, marketing and trading of natural gas and power in Europe, North America and Asia Pacific. It is a member of the Royal Dutch Shell Group of Companies which operates throughout the world in all sub-sectors of the petroleum industry. SGBV owns 25.6% of the shares in Nigeria LNG Limited.

Eni International (N.A.) N.V.S.a.r.l


Eni is one of the worlds major integrated oil and gas companies engaged in all sectors of the petroleum business. Eni is involved in exploration, development and production of oil and natural gas in 77 countries. Eni owns 10.4% of the shares in Nigeria LNG Limited.

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NLNG BOARD OF DIRECTORS

BGT BOARD OF DIRECTORS

NSML BOARD OF DIRECTORS

Osobonye LongJohn Chima Ibeneche Basheer Abubakar Koko Austen Oniwon Goni M. Sheikh Cordelia C. Agboti Jean - Eric Molinard Bagudu Hirse Guy Maurice Ian Craig Ruud de Jongh Vincenzo Armanna Edith Unuigbe - Offiong

Chairman Managing Director/Chief Executive Officer Deputy Managing Director

Osobonye LongJohn Chima Ibeneche Basheer Abubakar Koko Austen Oniwon Goni M. Sheikh Jean - Eric Molinard Ruud de Jongh Aleruchi Cookey-Gam Umaru Dahiru Luc Gillet Antoninio Fiore James MacDonald Donald H. Malcolm

President Vice President

Basheer Abubakar Koko Grant Akata Mohammad Buhari Richard Eccleston Laurent Routisseau Antonino Fiore Temilola Okesanjo Mukhtar Idi Edith Unuigbe - Offiong

Vice Chairman Managing Director

Company Secretary

General Counsel/Company Secretary Malcolm Mitchell Company Secretary

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Management

Profile

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MANAGEMENT

PROFIL E

MANAGEMENT

PROFILE

MANAGING DIRECTOR

Limited. Chima holds a degree in Electronics and Electrical Engineering from the University of Nigeria, Nsukka. He has over 31 years of experience in the oil and gas industry. Seventeen of these years have been in senior leadership positions. He spent his first three years with Schlumberger where he started out in 1978.

Shortly after joining Shell Petroleum Development Company (SPDC) in 1986, Chima was sent overseas on assignment as Senior Petrophysicist, Land Operations, in the Nederlandse Aardolle Maatschaappij, a Shell/ Esso company in Assen, Northern Netherlands. He returned to Nigeria in 1989 to become the Divisional Chief Petrophysicist. He was later appointed Chief Petroleum Engineer in the Western Division of SPDC. Chima

drilled the first horizontal well in Shells operations in Nigeria. From 1994 to 1999, he served as the Petroleum Economist for Europe and Africa at Shell International Headquarters in The Hague, Holland; Acting Petroleum Engineering Manager, Western Division; Human Resources Manager; and Deputy Development Director and Corporate Well Engineering Manager and Service Director at SPDC. In 2004, Chima Ibeneche

became the Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo), pioneering offshore and deepwater exploration in Nigeria. Chima joined NLNG in 2008 as the first Nigerian Managing Director from SPDC.

professional with extensive

He has been Managing Director, Svenska Shell AB Sweden, Country Chairman for Shell in Sweden and Deputy CEO Operations, Alliance Refining Company (ARC) Thailand (an alliance comprising two refineries: the Star Petroleum Refining Company Limited, SPRC, and Rayong Refinery Company Limited, RRC). Before coming to Nigeria

LNG Limited in November 2006, Mats was General Manager, Fleet Management, STASCO and was responsible for the management of the worldwide Shell Group controlled andoperated fleet, including the LNG carriers that STASCO manages on behalf of NLNGs BGT.

hima Jonathan Ibeneche, Nigerian, is the Managing Director, NigerianLNG

GENERAL MANAGER, Production

experience in plant operations with a successful track record in managing high performing production sites with diverse workforce. He began his career with Shell Raffinaderi AB, Sweden as a Process Engineer, and has worked at management level in different companies within the Shell International group.

ats Gjers, Swedish, holds a Master of Science degree

in Chemical Engineering/ Engineering Physics from Chalmers University of Technology in Gothenburg, Sweden. Mats is a seasoned

DEPUTY MANGING DIRECTOR

asheer Abubakar Koko, Nigerian, is Deputy Managing Director of Nigeria LNG Limited. With more than 25 years in the global oil and gas industry, Basheer has a grasp of cutting edge management practices as well as a clear understanding of the delicate workings of government policies. Beginning his career in 1982 at Kaduna Refinery (NYSC), Basheer joined NNPC Crude Oil Marketing Division in 1983. He has held several key positions including: Deputy Head, NNPC

London Office (1988-1991); Manager, Marketing and Sales at Eleme Petrochemicals, Port Harcourt (1997-1998); Manager, Marketing and Shipping, LNG Division (1999-2003); Office of The Group Managing Director, Nigerian National Petroleum Corporation (January 1999 November 2003); and Executive Director (Services) of Kaduna Refining and Petrochemical Company Limited (November 2003September 2007). Earlier, he was Special Assistant to the Honourable Minister of Petroleum Resources/ OPEC President (MayNovember 1988) and the Technical Assistant

to the Honourable Minister of State for Petroleum Resources (FebruaryAugust 1998). Between 1999 and 2003, Basheer represented NNPC at NLNG MAC and SAC meetings and also participated in MOU/ SPA negotiations with potential buyers of volumes from NLNG Plus (Trains 4, 5 & 6) as the Head of NNPC Representatives. A member of the Energy Institute UK, Basheer holds a Post Graduate Diploma in Petroleum Economics from Oxford in the United Kingdom and bachelor degree in Business Administration from Ohio University, United States of America (U.S.A.).

These are complemented by numerous top-of-the-shelf international courses and development attachments in Harvard University, USA; the Wharton College; University of Pennsylvania; IMD, Lussane Switzerland; and energy companies in the United Kingdom, Italy, America and Canada. Basheer was President of Calson Bermuda Limited, a NNPC/ Vitol Group Joint Venture and Managing Director, Hyson (Nig) Limited, another NNPC/ Vitol Joint Venture before he came to NLNG in 2009.

GENERAL MANAGER, Commercial

where, amongst other roles, he had oversight function of technical services contract and advised operations teams on host communities, conflict resolution, as well as relations with state and local government agencies. He was also lead counsel in the negotiation of various production sharing contracts and joint venture oil and gas agreements, notable among them, the $1.2 billion unitisation & unit operating agreement for the Amenam/Kpono fields off-shore, Nigeria, and the

$1.06 billion gas sellers direct agreement with lenders to the Nigeria LNG Limited Trains 4 & 5 Project. He was also Secretary, Total Nigeria Pension Fund with responsibility for legal aspects of pension fund management and regulatory reporting and compliance matters. Patrick, who has a strong track record in closing complex deals, in 2005 led the 2.5 million tonnes/year LNG Sales & Purchase Agreement negotiations with Suez LNG for the Yemen LNG Project and was responsible for

the 3.25 million tonnes/year LNG Sales & Purchase Agreements with BG Gas Marketing Limited and Occidental Energy Marketing Inc. for NLNGs Train 7 Plus project. His last posting before his appointment in Nigeria LNG Limited was as Deputy General Manager (NLNG Commercial) in Total Nigeria. Patrick speaks regularly at international energy conferences around the world.

P
France.

atrick Olinma, Nigerian, holds a bachelor and a master of law degrees

from the Universities of Benin and Lagos, as well as a Master of Business Administration (MBA) from the Grand Ecole ESCP, Paris, He began his career as a legal counsel in Abudu, Akinyemi & Ogunde in 1990 and was managing counsel when he left the law firm to join French oil giant Total Nigeria in 1996

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MANAGEMENT

PROFIL E

MANAGEMENT

PROFILE

GENERAL MANAGER, Finance

secured $1.06 billion for the NLNGPlus Project (Trains 4 & 5 in 2002). Between 2003 and 2004, he was Co-Leader of the Londonbased NNPC-MPN Financing Team on NGL-II Project. On returning to Nigeria in mid2004, he worked as Manager, Joint Venture Finance at NNPCNAPIMS. While at NAPIMS, he was chairman of the industry-wide Uniform Accounting Policy Committee (UAPC) which aims to improve financial reporting practice of major upstream

entities and thus allow for comparison and equitable cost sharing. A prolific leisure-time writer, Victor has two books to his credit, including the widelyacclaimed Nigerian Petroleum Business A Handbook and numerous published articles and commentaries. A well-known industry resource person, he enjoys speaking at notable international conferences related to oil and gas finance. He is a member of the Energy Institute, London. Victor joined Nigeria LNG

Limited in February 2007 from NNPC where he was General Manager, Finance and Accounts, NNPC-NAPIMS, responsible for coordinating all the financing and accounting activities essential to operating NNPCs joint operating agreements with international companies and for tracking costs under the product-sharing contracts (PSCs). While at NLNG, he has provided leadership in cost management, changing the spending culture.

GENERAL MANAGER, Shipping

he worked briefly as a Master Mariner on Oil Tankers & Terminals before proceeding to World Maritime University in Malmo, Sweden, to pursue a Master of Science degree in Shipping Management which he obtained in 1994. Temilola also sat for the (London) Institute of Chartered Shipbrokers (ICS) examination, qualifying as a Chartered

Shipbroker (MICS) in 1995. He has at various times worked as a Marine Superintendent/ SBM Pilot for Texaco Overseas Petroleum Company; Shell Petroleum Development Company (SPDC); Mobil Producing Unlimited; and Petroleum Development Company of Oman before joining NLNG in 1999 as Head of Shipping Operations. Temilola became the first

Nigerian Head of the Shipping Department (Shipping Manager) in 2002 and the first Nigerian employee to rise to the position of a General Manager in 2005.

ictor Eromosele, Nigerian, is a chartered accountant with a

masters degree in Business Administration from University of Benin. Starting out as a Budget Accountant for the Warri Refinery in 1980, Victors career with NNPC has spanned some 29 years, 16 of which have been in management positions. In 2000, he was appointed NNPC Representative/Deputy Leader of the Nigeria LNG Financing Team that successfully

industry in 1981 as a Deck Cadet in the now defunct Nigerian National Shipping Lines (NNSL). He later graduated from Australian Maritime College as a Master Mariner in 1990. Soon after graduation,

emilola Fatai Okesanjo, Nigerian, started his career in the maritime

GENERAL MANAGER, External Relations

on Nigerian television from mid 70s to the mid 90s, Siene spent over two decades as a network radio and television broadcaster, rising to the position of General Manager, Rivers State Television in 1996, before leaving for a short stint in legal practice in 1996. She was employed by Nigeria LNG Limited as its pioneer General Manager, External Relations in October 2000. Siene had her early education in the then Eastern

Nigeria in Aba and her secondary education at A C M Girls School Elelenwa, Port Harcourt. She joined the Nigerian Broadcasting Corporation (NBC) straight after school in 1973 as continuity announcer and moved on to NBC-TV, now the NTA in 1976 as a network newscaster and a reporter on the judicial desk. She took time off for her A Levels in 1979 at Kilburn Polytechnic, London followed by a degree in law from the Middlesex

University, London in 1984. She returned to the Nigerian Law School and was called to the bar in 1985. She is a Justice of the Peace and a titled citizen of Grand Bonny Kingdom. Siene has a passion for dressmaking, walking and enjoys witty writings.

GENERAL COUNSEL/ Company Secretary

Vice President of Nigeria in the defunct second republic during her compulsory national youth service as a Senior State Counsel, on secondment from Sherman & Sterling, Washington, DC, advisers to The Nigerian LNG Project. In 1984, she joined Kapital Merchant Bank Limited as legal officer and sub-manager. She moved up to become the companys Legal Adviser/ Company Secretary in 1988 before leaving for Commercial

Trust Bank Limited in 1990. At Commercial Trust Bank Limited, she was Head, Export Unit; Head, Financial Services; and Head, Investment Group. Between 1992 and 1997, she served as the Chairperson, Constitution Review Committee of the Money Market Association of Nigeria. Edith joined Nigeria LNG Limited in 1997 as Head Legal (Commercial) and rose to the position of Company Secretary and Legal Adviser in 1998. In

2006, she became the General Counsel/Company Secretary of Nigeria LNG Limited where she manages NLNGs legal services and secretariat services to the Boards of Directors of NLNG, BGT and NSML. While at NLNG, she drafted & negotiated the Engineering, Procurement & Construction (EPC) contracts for all the NLNG expansion projects and gas sales agreements (GSAS) with the joint venture partners of NNPC.

Manager External Relations. As GM External Relations, she oversees the Community Relations, Government Relations and Corporate Communications & Public Affairs Departments, making her the custodian of the companys brand, image and reputation. A well known face and voice

iene Allwell-Brown, journalist, broadcaster and lawyer is the General

Obafemi Awolowo University, Ile-Ife and a master of law degree from Harvard Law School, Harvard University in Cambridge. She is the General Counsel/ Company Secretary of Nigeria LNG Limited and Company Secretary of NLNG Ship Manning Limited. Edith began her career in 1982 with the Office of the

dith Unuigbe-Offiong, Nigerian, holds a bachelors degree from

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The Plant

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THE

PLANT

THE

PLANT

n November 1995, a Final Investment Decision (FID) was signed by the shareholders to build a liquefied natural gas plant in Finima, Bonny Island in Rivers State. In December 1995, a consortium of engineering firms comprising Technip, Snamprogetti, M.V. Kellog and Japan Gas Corporation (TSKJ) was awarded a turnkey Engineering, Procurement and Construction (EPC) contract for the construction of the Plant (consisting of two trains and subsequently identified as the Base Project), the Gas Transmission System and the Residential Area.
production capacity to 30 mtpa of LNG are currently at an advanced stage. The plant has rapidly and successfully made the transition from a construction project to a stable production operation, with a robust integrated delivery chain underpinned by relentless focus on asset integrity and HSE assurance. This has made NLNG to achieve, within a short span, the status of a very reliable supplier of LNG in the Atlantic Basin, serving the European, North American, South American, Middle East and Far East markets.

The Plant is built on 2.27sq. km of largely reclaimed land in Finima, Bonny Island. The main elements of the facilities already in operation are: Six LNG processing units (trains) with a total nameplate processing capacity of 23.5 MTPA Diversified Gas Supply (Associated Gas & NonAssociated Gas) and six main dedicated gas transmission pipelines with the four on-shore pipelines passing through over 110 communities Four LNG storage tanks with a capacity of 84,200 cubic metres each A common fractionation plant to process LPG A condensate stabilisation process unit Three Condensate storage tanks with a capacity of 36,000 cubic metres each Four 65,000 cubic metre LPG refrigerated tanks (for propane & butane) Ten generators with a total capacity of 320 MW Two LNG export jetties; one of which also exports LPG 24 LNG ships dedicated to NLNG service Materials off-loading jetty Passenger Jetty Terminal A residential area covering 2.08sq.km.

Construction at the plant site commenced in February 1996 and by August 1999, Train 2 was completed. On August 12 of the same year, the plant was ready for start-up. Production of LNG commenced on September 15. The second train of the Base Project, Train 1, came on stream on February 27, 2000. Train 3 came into operation in November 2002. NLNGPlus, comprising Trains 4 and 5, came on stream in November 2005 (for Train 4) and February 2006 (for Train 5). Train 6 was completed and became operational in December 2007. With six trains now operational, the entire complex is capable of producing 23.5 mtpa of LNG and 4 mtpa of Liquefied Petroleum Gas (LPG) and Condensate from 3.5 bcf/d feedgas intake. Plans for building Train 7 that will lift the total

MTPA: Million tonnes per annum NW: Megawatt

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THE

PLANT

THE

PLANT

May 17, 1989 November 1995 February 1996 September 1998 February 1999 August 12, 1999 September 15, 1999

Incorporation of Nigeria LNG Limited Final Investment Decision (FID) by shareholders for Trains 1 and 2 Commencement of plant construction Completion of Gas Transmission System Final Investment Decision (FID) by shareholders for Train 3 Plant Ready For Start-Up with Train 2 Commencement of production Export of first LNG cargo Start-Up of Train 1 Completion of Initial Supply Period Export of first Condensate cargo Export of first LNG spot cargo Export of 50th Cargo Plant Commissioning Ceremony Export of 100th cargo End of Build Up Period Commencement of Contract Year Final Investment Decision (FID) by shareholders for Trains 4 and 5 EPC Contract Award to TSKJ for Trains 4 and 5 Train 3 ready for Start-Up Commencement of LNG production from Train 3 First LNG shipment from Train 3, three months ahead of schedule Signing of the $1.6 billion loan for NLNGPlus Start-Up of LPG Facility First Shipment of LPG from NLNG Plant,Bonny Final Investment Decision (FID) by shareholders for Train 6 (NLNG Six) Start-Up of Train 4 Start-Up of Train 5 1000th LNG Cargo Feedgas reception facilities for the 6-Train complex became fully operational First Butane cargo destined for domestic market loaded Hand over of Train 6 to NLNGs Production Division. Record rundown of LNG to storage tanks within nine days of hand-over Nigerianisation of the Managing Director position 10 years of LNG, NGLs production Export of 2000th cargo New LNG daily production record of 64,700 tons/day

NLNG Major

October 9, 1999 February 27, 2000 March 31, 2000 April 4, 2000 May 25, 2000 August 5,2000 September 21, 2000 February 4, 2001 September 30, 2001 October 1, 2001 March 20, 2002 March 22, 2002 November 7, 2002 November 28, 2002 December 17, 2002 January 21, 2003 February, 2003 June 25, 2003 July 2004 November 2005 February 2006 December 2006 June 2007 October 2007 December 2007 May 2008 October 2009 October 2010 December 2010

Milestones

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Gas Supply

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G A S S U P P LY

THE

PLANT

The country is ranked 7th in terms of proven natural gas reserves in the world, the natural gas reserves/production being estimated at over 100 years.
Geologists believe that there is a lot more gas to be found (potentially up to 600 tcf), if companies deliberately explore for gas, as opposed to finding it while in search of oil. The government aims to eliminate all flaring of gas associated with the production of oil. And NLNG continues to play a significant part in this. In the period 19992009, NLNG has converted 67 bcm or 2.4 tcf of Associated Gas (AG) to export LNG/NGL products (705 cargoes in 2009) which otherwise would have been flared. With further improvements in the collection of associated gas, NLNG with its 6-Train LNG/NGL complex will be reducing flaring even further. Other demands on the use of Nigerias gas are domestic power generation, domestic utilities and industry, as well as export gas projects such as the West African Gas Pipeline (WAGP) and

igeria is blessed with abundant reserves of associated and nonassociated gas estimated in excess of 180 trillion cubic feet (tcf).

potentially other future LNG projects. NLNG is the biggest gas consumer/exporter in Nigeria. During 2009 the gas production was lower than planned. Gas production and supply have however significantly improved in 2010, particularly after the start-up of Shell Petroleum Development Company (SPDCs) 1 bcf/d Gbaran/ Ubie Integrated Gas and Oil Supply facility in June of that year. Resultantly, NLNG has now sufficient gas to operate all of its 6 trains at capacity.

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G A S S U P P LY

THE

PLANT

Gas Supply
Feedgas is produced by the JVs from various concession areas in the Niger Delta, from on-and off-shore fields. The agreements ensure efficient gas supply to the plant throughout the life of the projects. SPDC Joint Venture is currently supplying feedgas from a number of fields including Gbaran/Ubie (with a capacity of 1 bcf/d, which started-up in June 2010),Soku, Bonny (on-shore) and Bonga, and EA (off-shore) processing plants receiving gas from a wide range of fields. The NAOC Joint Venture supplies gas to NLNG from their Obiafu (OB/OB) gas processing centre which receives gas from a wide range of fields. These fields will be expanded in the future (Tebidaba and Ebocha / Irri fields). The Elf Joint Venture (TEPNG) derives gas supplied to the Plant from the on-shore Obite, Ibewa and Obagi fields. Additionally, rich gas from the off-shore Amenam and Akpo platforms is sent to NLNG. Currently TEPNG is running a project to increase its supply capacity from the Obite Gas Plant. A separate 42 inch diameter gas transmission pipeline is also in project execution phase, to bring the additional gas from Obite Plant to NLNG in 2012. At present, with six trains in full operation, the total gas requirement of the companys liquefaction plant is about 3500MMscf/d (3.5 bcf/d). Gas is transmitted to the NLNG complex through six independent Gas-Transmission-Systems (GTS). GTS-1/2/4 and BNAG piping systems are on-shore, while GTS-3 and

Gas Supply Agreements


Nigeria LNG Limited has long term Gas Supply Agreements with three Joint Ventures (JVs) for the supply of feedgas

to the plant. These JVs are Shell Petroleum Development Company of Nigeria Limited (SPDC), Elf Petroleum Nigeria Limited (EPNL, now Total Exploration Production Nigeria, TEPNG) and Nigerian Agip Oil Company Limited (NAOC). Details of the agreement are as follows (% vol. of gas requirements by each JV):

Project Name

Train

Joint Venture Company


NNPC/SPDC*/ NAOC/EPNL NNPC/EPNL* 23.4 0 23.4 23.4 19.7 NNPC/NAOC*/ POCNL 23.4 30.5 23.4 23.4 24.5

Base Train 3 Expansion NLNGPlus NLNGSix Consolidated

1&2 3 4&5 6 1-6

53.2 69.5 53.2 53.2 55.8

Legend: * NNPC SPDC NAOC EPNL POCNL -

Operator Nigerian National Petroleum Corporation Shell Petroleum Development Company of Nigeria Limited (Shell Affiliate) Nigerian Agip Oil Company Limited (Eni affiliate) Elf Petroleum Nigeria Limited (Now Total Exploration Production Nigeria, TEPNG) Phillips Oil Company (Nigeria) Limited

Mscf/d: Million Standard Cubic Feet per Day bcf/d: Billion Cubic Feet Per Day

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Commercial

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COMMERCIAL

COMMERCIAL

GTS-5 are off-shore lines.

MARKETING & SALES ADMINISTRATION


Since October 1999 when the first LNG cargo was loaded for delivery to France, NLNG has maintained its reputation as a reliable and secure supplier of Liquefied Natural Gas and Natural Gas Liquids (Condensates and LPG) worldwide. With a 6-Train complex of 22 mtpa LNG production capacity and 5 mtpa NGLs production capacity, NLNG now has the capacity to load and safely deliver over 330 cargoes of its products annually.

Europe, Turkey, Mexico and the United States of America. In recent times, NLNG has been delivering cargoes to the Far East, Middle East, South America, and the United Kingdom through its existing customers, with LNG cargoes delivered to Japan, South Korea, Taiwan, China, India, Kuwait, Brazil and Wales. This has positioned the company as a global player in the gas industry. NLNG has also executed over 42 Spot Master Agreements, both DES and Free on Board (FOB), with various companies located across major markets, enabling the sales of excess production volumes to the spot LNG market.

NLNG has entered into a number of Sales Agreements with its shareholders and third party companies for sales of the entire NGL volumes produced at the plant.

DOMESTIC LPG SUPPLY (DLPG)


NLNG commenced the supply of LPG to the Nigerian domestic market in 2007. That first NLNG LPG cargo into the domestic market was discharged at the Apapa jetty on December 26. NLNG has signed Sales and Purchase Agreements (SPAs) with off-takers (all Nigerian companies) in which the company is committed to deliver 150,000 tonnes of LPG into the Nigerian market annually. The number of off-takers involved in the Domestic LPG Supply scheme increased to Eleven (11) in 2010. This is in line with the companys commitment to contribute significantly to the stimulation and development of the domestic LPG market in Nigeria. The scheme, which has been an outstanding success, has also led to a guaranteed supply of the product and a significant reduction in the end-user price of LPG in the domestic market.

LNG CONTRACTS
NLNG currently manages sixteen (16) long term LNG Sales Purchase Agreements (SPAs) executed with 11 buyers on a Delivered Ex-Ship (DES) basis. These buyers include Enel, Repsol Gas Natural LNG (Stream), Botas, GDF Suez, GALP GN, BG LNG, Endesa, ENI, Iberdrola, Shell Western LNG BV and Total Gas and Power Ltd. The Long Term LNG buyers take delivery of their volumes in receiving facilities spread across the Atlantic Basin in countries such as Spain, France, Portugal and Italy in

NATURAL GAS LIQUIDS


High quality Liquefied Petroleum Gas (LPG) and Condensate are by-products of natural gas liquefaction. They are known as Natural Gas Liquids (NGLs). NLNG currently produces and loads over 45 cargoes of these by-products annually. Both LPG (fully refrigerated Propane and Butane) and Condensate are sold as feedstock for the petrochemical industry on Free on Board (FOB) basis.

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COMMERCIAL

COMMERCIAL

IN THE FUTURE
NLNG intends to consolidate its position as one of the largest producers and exporters of LNG in the world, becoming the 3rd largest supplier. Currently, NLNG delivers some 8% of the worlds demand. NLNGs 8.4mtpa Train 7 project, which will raise the liquefaction capacity to 30.4mtpa, is now awaiting Final Investment Decision (FID). SPAs have already been executed with 5 buyers.

Off-takers
Trains 1 & 2 ENEL GAS NATURAL GALP GAS NATURAL (TRANSGAS) GAZ DE FRANCE BOTAS Train 3 GAS NATURAL GALP GAS NATURAL (TRANSGAS) Trains 4 & 5 BG LNG ENDESA ENI IBERDROLA SHELL

Receiving Facility
Montoir Terminal Bilbao, Huelva, Cartagena, Barcelona, Sagunto Huelva, Sines, Cartagena Montoir Terminal Marmara Ereglisi

Huelva, Cartagena, Barcelona Sines, Huelva, Cartagena

TOTAL

GALP GAS NATURAL (TRANSGAS) Train 6 SHELL


NLNG is delivering about 8% of world LNG NLNG is contributing about 7% of Nigerias GDP NLNG supplies over 70% of Nigerias LPG needs

Lake Charles (Louisiana, USA) Barcelona, Huelva & Cartagena (Spain) Mugardos, Sagunto Sines (Portugal), Huelva (Spain) Huelva (Spain) Lake Charles (Louisiana, USA), Altamira (Mexico), Cove Point (Maryland, USA), Barcelona, Bilbao, Cartagena, Huelva & Sagunto (Spain) Lake Charles (Louisiana, USA), Zebbrugge (Belgium), Barcelona, Bilbao, Cartagena & Huelva (Spain) Huelva, Cartagena (Spain) & Sines (Portugal)

TOTAL

Altamira (Mexico), Cove Point (Maryland, USA), Barcelona, Bilbao, Cartagena, Huelva & Sagunto (Spain) & Lake Charles (Louisiana, USA) Lake Charles (Louisiana, USA), Zeebrugge (Belgium), Barcelona, Bilbao, Sagunto, Cartagena, Huelva (Spain) & Altamira (Mexico)

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Shipping

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SHIPPING

SHIPPING

NLNG has a total of 24 ships on long-term charter for its six-train operation. All 24 ships are utilised on an integrated scheduling basis for ex-ship deliveries to NLNG buyers in Europe, US, Middle East and Asia. The ships are owned as follows:
Bonny Gas Transport (BGT) BW Gas Nippon Yusen Kaisha (NYK) Shell Bermuda Overseas Limited (SBOL) 13 8 2 1 In addition to the above, NLNG chartered thirteen (13) vessels on Short Term Time Charter basis at different times in 2010 and for a range of charter periods, to augment existing fleet capacity. NLNG chartered vessels have so far delivered an excess of 2000 cargoes. In addition to our traditional deliveries to Europe and the US, NLNG also supplies LNG to Asia with deliveries to Japan, South Korea, India, China, and Taiwan and most recently to Kuwait.

Operational and technical management of nine (9) BGT vessels is provided by Shell International Trading & Shipping Company Ltd (STASCo). The remaining four (4) BGT vessels are managed by Anglo-Eastern Ship Management (AESML). The other Long Term Time Chartered vessels are owned and managed by BW Gas (8 vessels), NYK (2 vessels) and SBOL (1 vessel).

NLNG SHIPPING SERVICES (NLNG SS)


Ship Management Knowledge Transfer with STASCo
Shell International Trading and Shipping Company Limited (STASCo) manages one of the worlds largest fleets of Liquefied Natural Gas (LNG) carriers and oil tankers. STASCo provide group businesses and operations with vital resources and plays a vital role in the safe and secure delivery of energy around the world. The company is known for its high level expertise and decades of

experience regarding maritime safety & environment, vessel quality assurance, oil spill preparedness, port and berth assessments, and emergency management. The shipping group also carry out audits as a governance assurance process for all group businesses with exposure to shipping and maritime activities. The company is based in London and has experienced hands all over the globe, who advise on a wide range of ship and port projects. The Shipping Division of STASCo provides consultancy advice in over 40 countries and has been in partnership with NLNG as a Fleet Manager since inception. NLNG reached an agreement on Ship Management Knowledge Transfer with STASCo in 2008 with the contract

formally signed on June 23, 2009. The project has achieved the early milestones identified in the project schedule and the current timeline would see the new Ship Management Company, NLNG Ship Management Services Limited (NLNGSS) take over the management of the first four BGT vessels, from STASCo in June 2011. The project will slowly evolve through to 2014 when NLNGSS will have nine vessels under its control. Currently there are twelve NLNG secondees on training for proficiency in various aspects of ship management. Three of the secondees have completed their training and are on substantive roles as Technical and Operations Superintendent, whilst the others are at different stages of their training.

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SHIPPING

SHIPPING

Ship Management Knowledge Transfer with AngloEastern Group


In pursuit of NLNG plan for NLNGSS ability to manage all BGT vessels, NLNG signed Secondee Training agreement with AESML on 15th June 2009. As part of the agreements, the first batch of NLNG secondees commenced their training with AESML in January 2010, with further secondees due to join AESML in 2011. The Anglo-Eastern Group, AESML, has well over 11,000 crewmen and over 700 seasoned shore-based workers all over the world. It offers the complete spectrum of ship and crew management and technical services, which include technical support,

superintendence, procurement, accounting, insurance and agency services. Anglo-Eastern has won several laurels for its technical expertise in ship management. It has managed

growth year on year, culminating in the establishment of several technical centres worldwide to attend to the needs of its clients. The group manages LNG, heavy lift and offshore vessels from its UK Office.

NLNG Operational Shipping Performance 2009 versus 2010


2009 Availability Utilisation Total number of cargoes loaded 95.14% 63.37% 188 2010 95.13% 81% 264

SHIPPING SAFETY RECORD


Continuous improvement of the HSE and operational performance of each ship in the fleet is important to BGT and NLNG, and is subject to continuous review. Each ship in the fleet is continuously monitored and benchmarked against LNG industry standards. This is done through: Application and adherence to NLNG HSE Policy and Procedures. Shipboard Audit Programme and Safety Management Systems Continuous implementation and improvement of HSE initiatives. Independent LNG Shipping Performance Benchmarking Program Introduction of behavioural based safety. Analysis and sharing of incident report recommendations across the Fleet in a process called Learning from Incidents (LFI) Continuous engagement with fleet managers for improved performance This has resulted in downward trend in NLNG Chartered Fleet TRCF from 2008 to 2010 as shown below;

2008 TRCF 1.75

2009 1.50

2010 0.78

2010 BGT VESSELS NLNG VESSELS

MAN HOURS 4,239,789 7,677,192

TRCF 0.71 0.78

LTIF 0.24 0.26

TRCF Total number of recordable cases expressed as a frequency in relation to fleet wide exposure hours. LTIF Total number of Lost Time Injuries expressed as a frequency in relation to fleet wide exposure hours.

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SHIPPING

SHIPPING

DOMESTIC LIQUEFIED PETROLEUM GAS (DLPG) OPERATIONS


NLNG is continuing in its quest to maintain unbroken supply of LPG (cooking gas) to the Nigerian market. Previously, LPG was delivered to the Nigeria market by a Ship-to-Ship (STS) model where the NLNG Chartered LPG Ship (BW Boss) loads LPG from NLNG Terminal in Bonny and transfer to offtakers daughter vessels at sea for onward delivery to the buyers reception facilities. Following NLNG Board approval in 2010 the model was changed from STS to Delivered Ex Ship (DES) model and the LPG ship, Navigator Taurus was chartered. Under the DES model, Navigator Taurus loads from NLNG Terminal Bonny and deliver directly to the buyers terminal at the various ports in Nigeria. BW Boss was redelivered to her owners on 25th October 2010.

Shipping: Major Milestones


1089 1990 December 11 January 10 May June 7 1999 August September 14 October 19 December 31 2000 February November 2001 February 4 September August October 10 December 2002 2003 June 11 September 30 February 26 February/March March 21 April 26 September 22 October 13 November 05 November 05 Nov/Dec 2004 November 16 November 21 Incorporation of Bonny Gas Company (formerly Enellengee Limited; renamed BGT Limited on September 1, 1991) BGT acquired its first two vessels, LNG Bonny and LNG Finima BGT commenced time charter with Malaysia LNG BGT exercised its options to purchase LNG Lagos and LNG Port Harcourt Contract with Hyundai Heavy Industries (HHI)_for the construction of two new builds, Hulls 1295 and 1296 (LNG Rivers and LNG Sokoto) BGT and NLNG signed Time Charter Party for four vessels LNG Lagos delivered first cargo to Enel of Italy at Montoir LNG Terminal, France Finance close, vessels 8 & 9 (Hulls1295 & 1296) Commenced construction of the first of three new ships (LNG Rivers, LNG Bayelsa & LNG Sokoto) Contract with Hyundai Heavy Industries for the construction of third new build, Hull 1429 LNG Bonny loaded the 100th LNG Cargo to Montoir Finance close, Vessel 10 (Hull 1429) Ownership of two vessels (LNG Edo and LNG Abuja) transferred to BGT LNG Abuja delivered NLNGs first spot cargo to Europe Contract with Hyundai Heavy Industries for construction of four new builds Hulls nos. 1469, 1472, 1470, 1471 & 1472. Delivery of LNG Rivers Delivery of LNG Sokoto Delivery of LNG Bayelsa Condition Assessment Programme (CAP) survey LCFS conducted on LNG Bonny and LNG Finima Finance close vessels (Hulls 1469-72 Yusuf A.H joined LNG Bayelsa as the first NLNG trained Captain LNG Lagos delivered NLNGs 400th cargo to Enel Montoir LNG Lagos Delivered 1st LNG cargo to gas natural at Bilbao terminal in Spain Keel laying of Hull 1469 LNG Port Harcourt delivered 1st cargo to Transgas at Sines Terminal, Portugal Life Extension Studies and CAP surveys conducted on LNG Port Harcourt Delivery of LNG Akwa Ibom LNG Bayelsa delivered 1st Nigerian LNG cargo to Barcelona June June July July 16 Sept 1 October October October 2010 2008 2009 2007 2006 September 30 June 29 October 13 November June June September September December June January March 15th June 23rd June June 2004 2005 December 10 March 30 June 01 September LNG Abuja loaded first 500th cargo carried by BGT ships for NLNG. First batch of Nigerian ratings joined LNG Sokoto Delivery of LNG Adamawa Successful BGT Nigerianisation: Capt Temilola Okesanjo appointed GM BGT, first Nigerian to hold the position. Delivery of LNG Cross River Delivery of LNG River Niger Finance close, refinancing of BGTs third party loans Delivery of LNG Lokoja Delivery of LNG Ogun Delivery of LNG Gemmata Delivery of LNG Ondo Delivery of LNG Borno First Ship-to-Ship transfer of LPG destined for domestic market from BW Saga to Blue Gas Delivery of LNG Imo Creation of NLNG Shipping Division NLNG conducted her first SIRE inspection of a chartered vessel Signing of Training Agreement with AESML Signing of Ship Management agreement with STASCo NLNG shipping database, ASSETT, used as independent tool with NLNG Quality Assurance Policy for vetting marine crafts and terminals for NLNG business LNG Bayelsa successfully delivered first NLNG cargo at Egegaz LNG terminal, Izmir, Turkey LNG Finima successfully delivered first NLNG cargo at Dragon Terminal, Milford haven, Wales, UK LNG Finima successfully delivered first NLNG cargo at Guanabara bay, Brazil. Release of NLNGSS Safety Management System (Integrated Management System IMS) Set up of NLNGSS cell within STASCo NLNG 2000th cargo delivered by LNG Sokoto Charter of Navigator Taurus for the DLPG DES model Redelivery of BW Boss to the owners

improvement in standards of design and operation. NLNG is represented in the OCIMF General Purposes Committee (GPC) and in the Ports & Terminals Committee (PTC).

NLNG SHIP MANNING LIMITED (NSML)


In response to rapid changes and challenges in the maritime business and the dearth of ship board personnel in the country, NLNG Ship Manning Limited (NSML) was set up to deliver on NLNGs strategic plan to have a shipping Management service supported by a dedicated manning company to develop and supply qualified and competent manpower on its ships. A wholly owned subsidiary of NLNG, the company is saddled with the rapid development of Nigerian manpower in line with international standards of competence and practices. The establishment of the company is also in furtherance of NLNGs Nigerianisation policy which is in sync with the federal governments local content drive. NLNG has been pursuing its Nigerianisation Plan vigorously before NSML. Significant milestones were recorded with Fleet Manning Department where over 55% Nigerianisation has been achieved. Four Nigerian Masters or Fleet Captains have emerged from this exercise. Two additional Nigerian Masters were to emerge in 2010 but have been transferred to the SMKTA project, and they are making the desired progress. Of the many cadets recruited in the early years, a number are now serving as senior and middle level officers on the NLNG fleet, others including the four Masters have assumed senior shore positions in the Shipping Division. From 2002 to 2007, 168 cadets were trained. As part of their training, all cadets go on board BGT vessels for practical experience; this is aimed at instilling in them the discipline required for successful career at sea and at meeting the competency certification requirements of the STCW 95 regulations. Between 2008 and 2009, 56 cadets were recruited. They are currently at Warsash Maritime Academy and Glasgow College of Nautical Studies in the UK.

SHIPPING & MARINE QUALITY ASSURANCE


NLNG has established a Shipping Assurance and Compliance Department that will ensure that each segment of the entire NLNG shipping and marine business operations comply with best industry practice and international standards. All vessels and terminals used for NLNG business are positively vetted using a mixture of inspections, assessments and due diligence reviews. These activities are conducted in line with industry best practise with the shipping assurance department also conducting a number of Oil Company International Marine Forum (OCIMF) accredited inspections. To this end, NLNG has been admitted as a member of the Oil Companies International Marine Forum (OCIMF), an organisation with the mission to be the foremost authority on safe and environmentally responsible operation of tankers and terminals, and to promote continuous

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SHIPPING

SHIPPING

In 2010, 16 cadets have been recruited and they are scheduled to commence training in the UK in 2011. BGT now has 155 Nigerian officers and 366 Nigerian ratings in its employment. The company plans to recruit additional ratings in 2011 to bring the total number to 400. NLNG continues to support the Nigerian Maritime Academy, Oron, to train manpower for the industry. Warsash Maritime Academy, Southampton, was engaged to review the academys STCW 95 courses. The Warsash Maritime Academy is also facilitating the accreditation process of Maritime Academy of Nigeria, Oron, certifications for the approval of the UK Maritime and Coastguard Agency (MCA) Authority. The cost for this project which includes purchase, installation and testrunning some equipment for the Academy is fully borne by Nigeria LNG limited. The Company has spent over US $100,000 on the equipment, besides sponsorship of four lecturers and a Life craft Technician for an update training in United Kingdom. In 2010, NLNG donated a Proficiency in Survival Craft and Rescue Boat (PSCRB) worth N40 million to the academy.

CADETS RECRUITMENT/TRAINING TABLE Year of Recruitment


1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010

Total number of Recruited Cadets


11 13 19 25 9 23 29 28 27 34 22 16

Year of Completion
2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013

Number of Graduated Cadets (vis-a-vis year of completion)


11 12 19 24 8 21 29 23 22 -

Above in table are the details of Cadets recruitment/Training from 2001 to date

PSCRB in Oron

A government representative, Sir Adeyemi Olayisade, commissions PSCRB equipment donated by NLNG in 2009 to NMA ,Oron.

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Financing

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FINANCING

FINANCING

PLANT Base Project


totalling US$620 million, an uncovered international bank loan of US$180 million, an uncovered Nigerian commercial bank loan of US$160 and an African Development Bank facility of US$100 million. The ECAs, namely US EXIM, ECGD, SACE and Gerling NCM, provided guarantees to a group of nineteen international banks led by BNP Paribas, Citigroup, Credit Lyonnais, MCC and West LB. The ECA backed facilities as well as the African Development Bank facility had eight year tenure. The facilities have been fully repaid on 15 December 2010, with a $72million place holder financing left for another year. The incredible strength of character displayed by NLNG in abiding by the loan covenants, terms and conditions throughout the tenure has significantly increased the appetite of international lenders for financing opportunities involving the company.

he Base Project (Trains 1 & 2), which cost US$3.6 billion, was

financed by NLNGs shareholders.

Expansion Project
NLNGs third train (Expansion Project), including additional tankage, cost US$1.8 billion. The financing was carried out in a similar manner as the Base Project. Besides the new equity injection by the shareholders, revenue and surpluses from the Base Project were re-invested in the Expansion Project. Much of the cost of the new LNG tankers was borne by third party financiers.

NLNGPlus Project
The NLNGPlus project (Trains 4 & 5) cost was US$2.2 billion (excluding ship acquisition). This was funded with a combination of internally generated revenue and third party loans amounting to US$1.06 billion. The third party loans comprise of four Export Credit Agency (ECA) guaranteed international commercial bank loans

Train 6
Final Investment Decision (FID) for NLNGSix was taken in July 2004 for the sum of US$1,748 million. Train 6 was principally financed from internally generated funds. StartUp was December 14, 2007 and production commenced on 23rd December 2007. The train is up and running.

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FINANCING

FINANCING

SHIPPING
Base Trains
In 1990, the company raised a third party loan of US$132 million through Citibank to buy four ships for the Base Projects. The ships, built for another company but not put to use, were refurbished and put into interim business until the plant began operations. BGT raised US$ 460 million in March 2003, to partly fund the construction of the vessels. This facility was arranged by ABN AMRO Bank, Credit Lyonnais, Fortis, ING Bank, HVB, Verein und Westbank and West LB. The balance of $282 million came from internally generated revenue and shareholders funds. BGT refinanced all the foregoing third party facilities in 2006 with a US $680 - million facility through Standard Chartered Bank. This is secured against the 13 vessels in BGTs fleet.

Train 6
Following the signing of NLNG Train 6 Final Investment Decision (FID), six LNG vessels were built and delivered at a combined cost of US$957 million on long term charter to NLNG. The vessels were built at Daewoo Shipyard and Samsung Shipyard in South Korea. Four of the vessels were chartered from BW GAS Asa of Norway and two from NYK LNG (Atlantic) Ltd of Japan.

Train 3
Following the Third Train Expansion, three vessels were acquired by BGT. Their construction was partly funded with third party financing, viz: LNG Rivers & LNG Sokoto were financed with US$160 million syndicated loan which was signed on December 20, 1999. Credit-Suisse First Boston was the lead arranger for this facility for which repayment started in 2002 following the delivery of the second vessel. The third external debt in connection with BGT fleet was the loan inherited from the acquisition of two exLachmar ships (LNG Edo and LNG Abuja) from NLNG on August 1, 2001 when the outstanding debt stood at US$ 210 million. In September 2001, another syndicated bank loan for US$ 100 million was arranged to assist with the construction of LNG Bayelsa. Again, Credit-Suisse First Boston played the lead role. The vessel was delivered in February 2003 and the debt is being serviced.

Trains 4 & 5
Eight additional ships needed for the NLNGPlus project were delivered. Hyundai Industries and Daewoo Shipyard built the ships. Of the eight vessels, BGT owns four while others are chartered from Bergesen d.y of Norway.

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Nigerian

Content

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NIGERIAN CONTENT

NIGERIAN CONTENT

Content Plan as a condition for taking Final Investment Decision (FID).


The approved Nigerian Content Plan is aimed at achieving enhanced Nigerian Content performance in all activities, with the ultimate goal of increasing Nigerian content in all projects and services and meeting governments directives on Nigerian Content now enacted into law as the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010. NLNGs commitment to maximizing Nigerian Content in all arms of its operations is geared towards developing indigenous service providers and suppliers (manufacturers and fabricators) to enable them attain excellence. Maximising Nigerian participation in projects will ultimately result in enhancing local capability and engender technology transfer and development. This is achieved through full compliance with the NOGICD Act in the award of contracts and purchase orders. The need to maintain the six trains currently in operation and continue sponsored community projects has presented ample opportunities for Nigerian companies and contractors. The companys performance on Nigerian Content is monitored by a committee on Nigerian Content set up by the Board of Directors and driven by various teams in the company. In a bid to discovering Nigerian sources, Nigerian Content surveys are conducted at scheduled intervals throughout Nigeria to identify indigenous companies which are capable of providing the goods and services required by NLNG. Surveys conducted so far have resulted in the discovery and utilisation of Nigerian manufactures like Shoreline Power and Nigerian Ropes.

LNG considers Nigerian Content as an important feature in all its activities projects, production and shipping. In line with this, all LNG projects are required to have an approved Nigerian

NIGERIAN CONTENT STAKEHOLDERS WORKSHOPS


To further enhance our in-country sourcing of local companies, NLNG carried out a series of Nigerian Content Stakeholders Workshops which has served as a forum for continual exposure of Nigerian companies to the needs of the oil and gas sectors and an avenue for discovering Nigerian manufacturers and services providers. Major oil and gas companies, government agencies and a total of 143 companies drawn from manufacturing, fabrication, plant maintenance services, engineering services providers and consultants have attended these workshops that were conducted in 2009 and 2010. These workshops have led to the discovery of Nigerian companies such as Klysat cables and Westcom Nigeria limited. NLNG continues to conduct site and facilities assessments and evaluation of other promising companies.

TRAINING AND SKILLS AQUISITION


NLNG trained over 11,284 Nigerians during construction of its plants and it continues to do so with local craftsmen employed during plant shutdowns. This has significantly increased the use of local technicians/artisans to more than 90%, with a corresponding reduction of expatriates. There is also deliberate effort towards increasing local participation in shipping by Nigerian companies. Through Bonny Vocational Centre (BVC), the company embarked on the training of local contractors in various cost estimation and project management courses, geared towards enhancing the capacity of local companies. Hundreds have been certified by London City and Guilds. Annual vendor training sessions are being carried out in Bonny, Port-Harcourt and Lagos. The Bonny Vocational Centre has trained a total of 1086 in electrical installation, fabrication, welding and pipework, mechanical fitting, metal machining, painting and

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NIGERIAN CONTENT

NIGERIAN CONTENT

decorating, plumbing, timber and trowel vocation, catering and hospitality, business and administration.

SERVICES AND PROCUREMENTS


NLNG encourages full participation of Nigerian companies in its contracting and procurement processes. This has yielded positive results in many aspects of our business. An instance of this is the award of major marine services like the provision of tug boats, towage and mooring services and emergency response to Nigerian indigenous companies. While doing this, NLNG strives to maintain international standards on Quality, Cost, Schedule and Health, Safety and Environment (HSE). This is done in the larger context of NLNGs policy on Corporate Social Responsibility. The driving theme here, therefore, remains sustainability.

The following passages explore some of the indigenous companies who have worked with and benefited from the NLNG Local Content Policy.

DORMAN LONG NIG. LTD.


NLNG began a relationship with Dorman Long during its Train 3 (Expansion Project) after its Nigerian Content survey had identified some capability for fabrication in Dorman Long Ltd. NLNG consequently brokered a merger between Dorman Long and Robey Oil & Gas Ltd., another company identified with some capability for engineering services. Robey Dorman Long Ltd. (RDL) subsequently delivered on an NLNG order for about 1067 tonnes of steel structures and 160 tonnes of low-pressure carbon steel vessels for Train 3.

The merger was short-lived, but Dorman Long became more positioned and was awarded a contract in Train 6 Project for the fabrication of vessels in excess of 200 tonnes. NLNG, by this order, supported the construction and installation of a large heat treatment furnace at the Dorman Long facility, a major technological leap that will aid the continued development and expansion of fabrication activities in Nigeria. Dorma Long and Nigerdock were also awarded contracts for the construction of total tonnage of 1038 (Dorman Long-500 tonnes; Nigerdock-538 tonnes) galvanized structural steel works. This was achieved after NLNGs involvement in the enhancement of their galvanization capability.

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NIGERIAN CONTENT

NIGERIAN CONTENT

NEXANS KABELMETAL
NLNGs relationship with Nexans Kabelmetal also dates back to Train 3. Nexans Kabelmetal was encouraged to increase its capacity for the production of cables through an order to supply to the Project (Train 3). This necessitated the acquisition of new equipment. Nexans Kabelmetal is currently expanding into manufacturing of instrumentation cables, medium- and high-voltage cables.

NIGERIAN FOUNDRIES
NLNG worked with Nigerian Foundries to improve their processes for the manufacture of trench grating for supply to the NLNG projects. It is interesting to note that these gratings made from cast iron products arose from an adapted specification made by NLNG specifically to meet an in-country capability. Over 1,260 gratings and castings were delivered to Train 6.

As in the case of Dorman Long and Nexans Kabelmetal, NLNGs order for gratings from Nigerian Foundries, aside from improving its processes, have also aided in the expansion of its facility and product base. Nigerian Foundries has now built another facility for manufacturing loading arms counterweights, one of the materials needed at NLNGS loading facility. It has also diversified into production of cathodic protection nodes.

ENCHEP LTD.
Enchep Ltd., is another company identified by the Nigeria content survey with capability for (some ranges of) gasket manufacturing, but unfortunately, Enchep used asbestos as feedstock. NLNG invited Flexitallic of the United Kingdom, which had undergone the same process of having to change over from asbestos to spiral wound metal as feedstock, to help Enchep make this change over. NLNG funded this change. NLNG further contracted the service of an internationally reputed foreign consultant, Admas Occupational and Environmental Health Consultants of Bradford, UK, who certified that Encheps production line was free of asbestos dust on completion of the asbestos clearing work by Flexitallic engineers. A partnership between Enchep and Flexitallic, encouraged by NLNG, ensued. This partnership has seen Flextallic introduce metal materials to Enchep as well as provide practical training to Encheps engineers. This is in addition to helping Enchep set up quality assurance and control processes.

Enchep is now ISO-9001 certified. The company supplied over 35,000 pieces of different sizes and ranges of gaskets to NLNG for the Plus Project (Trains 4 and 5) and over 84,000 pieces for Train 6. Enchep has since gone on to supply gaskets to companies within and outside Nigeria.

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Environment

The

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THE

ENVIRONMENT

THE

ENVIRONMENT

and safety of its employees and of other persons, and to give proper attention to the protection and conservation of the environment.
In line with this, NLNG plans its work to: Prevent injuries and ill-health to workers and surrounding communities; Prevent damage to assets and minimise any adverse impact on the environment; Avoid/eliminate future liabilities; and Meet requirements for demonstrable diligence. At the conception of the NLNG project, there was a major focus on carrying out preliminary environmental studies. Between 1987 and 2002, intensive environmental studies were carried out and Environmental Impact Assessment (EIA) reports prepared. The EIA reports for the Base Project (Trains 1 & 2) and the Gas Transmission System 1 (GTS/1) were reviewed and certified by the then Nigerian environmental regulatory body, the Federal Environmental Protection Agency, (FEPA). In early 1997, the final EIA report was approved, making NLNG the first major project in Nigeria to complete full EIA process before commencement of business. An important element of the EIA process is to mitigate potential adverse impacts. For the Base Project, a number of potential adverse impacts were identified and mitigation measures were immediately taken. Additionally, similar EIA studies have been conducted for subsequent projects (Expansion, NLNG Plus, Train 6 , Train 7 Plus and Bonny River Terminal (BRT) Airstrip). The reports for these studies have been approved by the current Nigerian environmental regulatory body, the Federal Ministry of Environment. To ensure adherence to EIA requirements, an Environmental Social and Health Management Plan was developed with the major objectives of ensuring compliance with legislation and NLNG HSE policy. The plan is regularly updated and its implementation evaluated by regulators.

LNG places a premium on Health, Safety and the Environment (HSE) in its activities. The company has a well-articulated HSE policy anchored on the need to take proper care of the health

DISCHARGES TO WATER
To ensure compliance with regulatory requirements, NLNG has adopted the principle of abatement through minimisation at source of aqueous discharges that have the potential of causing adverse impact on the environment. However, where this is not feasible, application of endof-pipe technology is adopted to minimise eventual environmental effects of discharge. Periodically, an assessment of the receiving environment is carried out to confirm that our activities are not interacting adversely with the environment.

SOLID WASTE MANAGEMENT


Nigeria LNGs waste management strategy complies with the concepts of waste management hierarchy and duty of care for both onsite and offsite waste treatment and disposal activities. The Cradle to Grave principle is adopted for the management of solid waste. The principle is essentially the proper and controlled handling, treatment and disposal of solid waste, being underpinned by the 4R philosophy of Reduce, Reuse, Recycle and Recover. Duty of care audits are regularly carried out with federal and

SEWAGE TREATMENT AND DISPOSAL


NLNG has a denitrification/ nitrification biotreater. Waste water and sewage from the plant, as well as all domestic sewage from the Residential Area, are treated in this facility so that only treated clean water flows into the river. The biotreater is designed to meet the stringent effluent water quality specifications as agreed in the EIA Health Safety Environment Premises.

state regulators to check compliance. The companys overall waste management performance objectives are to minimize waste generation and continuously increase the percentage of wastes recycled, recovered and/or reused when compared to the fraction disposed or stored on-site.

wastes. The fragile nature of Bonny Island does not allow for the creation of a landfill site. Consequently, all other nonhazardous solid wastes are temporarily stored on the plant site before being transported to disposal/treatment facilities off the Island duly approved by Federal Ministry of Environment as well as environmental sanitation authorities.

NON-HAZARDOUS WASTES
NLNG operates two (2) incinerators at its Bonny Plant site to handle non-hazardous combustible wastes and clinical

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THE

ENVIRONMENT

THE

ENVIRONMENT

HAZARDOUS WASTES
NLNG is very concerned about the environment and believes that proper disposal of hazardous waste is important in fulfilling the corporate commitment to protect the environment and promote sustainable development. To this end, all hazardous wastes are assessed and disposed using the best practical environmental options after approvals from the Federal and State Ministries of Environment. Other waste management initiatives currently pursued by NLNG particularly for hazardous wastes include the use of buy-back schemes.

BIODIVERSITY AND NATURE CONSERVATION


In fulfilment of its policy on protection of the environment, Nigeria LNG has established a Nature Park in Bonny Island to preserve the natural environment of its host communities. The site of the Nature Park is the natural habitat of the salt water hippopotamus, now rare in Nigeria, and other interesting flora and fauna endemic to Bonny Island.

NLNG HSE Performance EMISSIONS TO AIR


For emissions to air, the principle adopted is minimisation through abatement at source. Dispersion modelling was employed in initial environmental investigations to predict possible levels of regulated parameters. Stack emissions and ambient air monitoring are routinely carried out within the plant fence and surrounding communities to ensure that ground level concentrations at the workplace and in the nearby settlements do not exceed the tolerance limits for ambient air pollutants according to regulatory limits. NLNG is also in the forefront of addressing the Climate Change challenges in the way we manage our waste, effluents and emissions.

NOISE MEASUREMENTS
Noise level measurements within plant fence and nearby communities are carried out regularly to confirm that the plant meets regulatory requirements and Project Noise Design Specification.

TRCF - Total Recordable Case Frequency LTIF - Lost Time Injury Frequency

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THE

ENVIRONMENT

THE

ENVIRONMENT

Environmental Performance
Typical Limits for Selected parameters in waste water effluents
SPECIFICATION Temperature pH Oil &Grease Ammonia Nitrate (NO3) Sulphide Total Suspended Solids Total Dissolved Solids Biological Oxygen Demand Chemical Oxygen Demand Residual Chlorine Dissolved Oxygen Domestic Sewage REQUIREMENTS Maximum limit 300c 6.5 - 8.5 Maximum limit 10mg/l Maximum limit 5mg/l Maximum limit 50 mg/l Maximum limit 0.2 mg/l Maximum limit 30 mg/l Maximum limit < 2000 mg/l Maximum limit 25 mg/l Maximum limit 125 mg/l Maximum limit 1 mg/l 1-5mg/l All domestic sewage to be sent to biotreater. Overflowing septic tanks are not permitted on the site

CONSERVATION
Finima Nature Park
Nigeria LNG Limited recognises that increased industrial activities on Bonny Island will put considerable pressure on certain aspects of community life and the ecosystem. To check this, NLNG established a nature reserve to ensure that some areas of the Island are conserved in their natural state. This is in recognition of the importance of the flora and fauna, the sacrifices of the Bonny people, and their aspiration and commitment to sustaining a permanent record of their natural heritage and culture. It is also part of NLNGs contribution to the national and global conservation objective in line with Rio Agenda 21, the Ramsar Convention and Biodiversity Convention. The park, named Finima Nature Park, is for conservation, recreational activities, and research on the fauna, flora and cultural heritage of Bonny Kingdom. It is approximately 700 hectares. The reserve area covers the rain forests and mangrove swamps, as well as an ecologically important area of sandy soil with fresh water ponds and tall timber between the swamps and the beach. This diversity is a good representation of the Niger Delta ecology, which will

afford a unique opportunity for research and educational activities. Already, the reserve is harbouring some wildlife species of high conservation value. There are also a variety of mammals, different bird species (mostly waterfowl) and reptiles, including crocodiles. At present, the nature reserve is managed by an NGO, the Niger Delta Wetlands Centre (NDWC), which undertook the feasibility study of the park area. In the future, it will be managed by a Board of Trustees drawn from the host community, thereby encouraging community participation and the sustainability of the park. In pursuing its environmental objectives, the company considers public consultation and enlightenment fundamental to fostering good relationships with its neighbours. It has initiated a forest enlightenment campaign in accordance with EIA mitigation measures. The company is partnering with the Bonny Environmental Consultants Committee (BECC) on the campaign to this end, a number of billboards urging the preservation of

Typical Waste Management Options For some Solid Wastes in NLNG facilities
SPECIFICATION Chemical containers/Drums Scrap metals Batteries Non-combustibles Clinical Waste REQUIREMENTS Avoid recycling for domestic use. Punctured and crushed for recycling Recycle via approved and registered contractors Collect and store in separate containers; Dispose via recycling. No incineration of batteries on site. Collect and store separately and dispose via recycling Incinerated in high temperature incinerator

forests have been erected at strategic locations on the Island.

Use of wildlife resources is prohibited on Bonny Island.

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THE

ENVIRONMENT

THE

ENVIRONMENT

Photographs of the Finima Nature Park Walk in 2010

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Development

Community Relations &

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igeria LNGs approach to corporate social responsibility is anchored on stakeholding, partnership and sustainability. In pursuing its CSR objectives, the company through the Community Relations and Development department provides support to its host communities for the enhancement of their living standards and economic potentials via two broad areas: business/human development and infrastructure development.
The business/human development programme involves the following activities: Encouragement of indigenous contractors; Employment of skilled and unskilled labour; Economic empowerment through micro-credit support, skills acquisition and agricultural development; Award of scholarships and educational support. Facilitation of health interventions
To build and maintain positive relationships with the communities, engagement specialists are assigned to specific settlements as liaison officers, covering over 110 pipeline communities. Others work as development officers specializing in key areas such as Health, Education, Economic Empowerment and Youth Development. The company operates an open door policy. Officers meet regularly with representatives of the host communities, formally and informally, to maintain constant interaction and good relationships.

BONNY UTILITY COMPANY (BUC)


The Bonny Utility Company (BUC), set up by the JIC in partnership with the community to provide sustainable electricity and water supply, manages the electricity project, with the local government and Rivers State Government as stakeholders. BUC offers free electricity in Bonny to cover basic consumption and executed the street lighting of the Bonny Bypass Road A1. However, private electricity consumption beyond the basic measure is paid for to ensure sustainability. There are over 9,300 connections to the BUC distribution grid. About 93% of BUC employees are Bonny indigenes. The BUC is also responsible for the supply and distribution of water in Finima town and most parts of Bonny, pending the completion of the water project.

The infrastructure programme is made up of the following components: Construction of new infrastructure; Upgrading of existing infrastructure; Road construction; Provision of potable water; and Power generation, distribution and maintenance.

JOINT INDUSTRY COMPANIES (JIC)


In 1998, the Joint Industry Companies (JIC), made up of NLNG, Shell Petroleum and Development Company Limited (SPDC) and Exxon Mobil signed an MOU with Bonny Kingdom. The MOU will improve electricity, water supply, provide two major roads of 2.7km and an accelerated development of Bonny Island through the design and implementation of a Bonny Master Plan. This development led to the establishment of a company called the Bonny Utility Company (BUC) to undertake these tasks.

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NLNGs donation of medical equipment to Braithwaite Memorial Specialist Hospital

RIGHT OF WAY MAINTENANCE CONTRACT


NLNG recognises the African attachment to land and the obvious fact that no legislation, no matter how well intended, captures all the expectations of the people. It is in this regard that it adopted a systematic approach in its pipeline communities which seeks to promote ownership and meet the communities expectations. NLNG, after paying compensation for Right of Way, trees and crops, went the extra mile to ensure that feelings of dispossession and deprivation were assuaged. This was done through the award of Gas Transmission System (GTS) Right of Way (ROW) surveillance contracts. Holders of GTS ROW Maintenance Contracts, which rotate among the land owning families, employ family members to execute the jobs which cover: Pipeline Right of Way surveillance and inspection Asset maintenance: painting of signposts and markers, grass cutting, etc.

has made the concept of good neighbourliness come alive in its host communities. It has constructed ultramodern health centres in Ubio and Okposi, a water plant in Ubeta, provided hospital equipment in Rumuji, Ubio and AmadiAma, and also installed electricity transformers in Rumuji. It has built several kilometres of roads in Rumuji and Bonny; health centre staff quarters in Peterside, several schools and primary health centres in several communities in Rivers State and promoted social interaction among communities. These are in addition to health awareness campaigns, engagement sessions, sponsorship of immunization campaigns, renovation of schools and town halls, sinking of water boreholes, provision of school desks and writing materials in other host and pipeline communities.

Trained 57 Female sex workers on life skills and another 52 and clients as Peer Educators Capacity building for 66 healthcare workers on effective programme implementation and service delivery Produced and distributed behaviour change communication materials Other efforts include: Baseline study of knowledge, attitude and practice Training of Health Peer Educators who serve as reservoirs and promulgators of social knowledge Campaigns targeted at different groups Youth Against Aids Club (YAAC) groups formed in secondary schools Direct support for People Living with AIDS Roll Back Malaria Campaign The Roll Back Malaria campaign was launched by both the Federal and Rivers State governments to combat malaria through improved sanitation habits and use of mosquito/insecticide treated bed nets. To support this drive, NLNG launched the campaign in all its host local government areas in Rivers State and actively participated in the facilitation and awareness of the World Malaria Day 2010.

IMMUNIZATION
The immunization campaign was done in collaboration with Rivers State Ministry of Health. For the 2010 first round campaign against poliomyelitis, NLNG provided support manpower, logistics (land and water transport) and banners in Bonny and GTS communities. At the end of the campaign, 424,469 children were immunized for polio in our host communities.

HEALTH
Bonny General Hospital
After carrying out a major upgrade of the Bonny General Hospital, NLNG signed an MOU with the Rivers Sate Government to facilitate a 3-year intervention programme that will support improvement of systems and processes, and professional skills of the health workers in the hospital in order to ensure sustainable health care delivery in the hospital.

HIV/AIDS
Expectedly, construction and production activities at various oil and gas company locations on Bonny Island have resulted in the influx of migrant workers into the island. These migrants come from within and outside Nigeria. The high concentration of migrant workers without families and the influx of commercial sex workers have brought many socio-cultural problems.

COMMUNITY DEVELOPMENT INFRASTRUCTURE PROJECTS


With activities ranging from electricity generation, road construction and repairs to water supply as well as building and furnishing of schools, Nigeria LNG Limited

One of such problems is the high prevalence rate of HIV-AIDS infection. The Rivers State Ministry of Health recorded an alarming increase on the number of people living with HIV /AIDS in studies conducted on expectant mothers in Bonny. The figure moved from 1.2 per cent in 1996 to 8.3 per cent in 2002. As a responsible corporate citizen, NLNG has put in place several programmes to check the spread of the virus in Bonny. A significant pointer to this effort is the launch of the Ibanise HIV/AIDS Initiative which is an outfit

established by the JIC in 2006 to respond to the growing prevalence of HIV/AIDS in Bonny kingdom. In 2010, the initiative was able to accomplish the following: Counselled and tested 11,972 with 626 testing positive. Facilitated HIV treatment for 97 persons. Reached 19,772 with HIV prevention messages. Established three support groups for People Living with HIV/AIDS Trained 355 in-school youths as Peer Educators.

EDUCATION
Scholarship
Another area of intervention is in human capital development. NLNG awards scholarships yearly to

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to make the participating youths economically and socially responsible and self-reliant through guided vocational and entrepreneurial development training. Since inception, over 400 youths have graduated and have been supported in eight vocations including welding, computer programming, tailoring, catering, events management, hair dressing, carpentry, photography and video production. Participation is open to youths from NLNGs host and pipeline communities. From 2007, concession was given to take in a limited number of physically challenged youths recommended by Play House, a charity home in Port Harcourt. NLNG solely bears the cost of the training welfare, training materials, training fees and support packs. Additionally, NLNG pays monthly stipends to the participants, bears the cost of Trade Test Examination

and supports them with appropriate starter packs on graduation.


Through YES, NLNG desires to reduce youth restiveness, vulnerability and dependence. It also seeks to transform the youths into role models and useful partners in development.

Nigeria LNG Agro Development Action (N-AGENDA)


The Nigeria LNG Agro-Enterprise Development was designed to enhance the revenue earning potential of rural entrepreneurs through the provision of value added agricultural and non-agricultural services capacity building in farm management techniques, exposure to improved varieties and crops, field trips and linkage to farming institutes, etc.

2010 BVC graduates

students in tertiary institutions. No fewer than 2,250 undergraduate students have benefited from this scheme in NLNGs host communities, Rivers State and rest of Nigeria. Under its Specialist Education Scholarship Scheme, NLNG has awarded full scholarships to 16 cadets in the Maritime Academy of Nigeria, Oron, to support technical education development in the maritime sector in Nigeria.

Provides text/exercise books and school desks. Rehabilitates dilapidated classroom and builds new block of classrooms as required. Supplies science equipment.

safety, construction, leadership & management.

ECONOMIC EMPOWERMENT
Micro-Finance Scheme The micro-finance programme, a scale-up of the highly successful pilot micro credit scheme is designed as a financial and non-financial services intervention programme aimed at supporting clients with products that meet their continued financial and non-financial needs. At the first level, the introduction of the Village Savings and Loans Associations (VSLA) has led to the mobilization of credits and building of internal capacities in credits administration. The scheme produces strong, credible and accountable leadership at the village level, as members are chosen on trust, based on known history and proven integrity. In 2010, 567 Accummulated Savings and Credit Associations (ASCA), comprising of 8,862 individuals mobilised about N75 million own funds At a higher level, the Credit Guarantee Scheme provides

Bonny Vocational Centre


The Bonny Vocational Centre is an NLNG/Bonny Kingdom partnership project designed to promote vocational/ entrepreneurial skills acquisition, development of technical competencies and self-reliance in youths in Bonny community in particular and Rivers State in general. It is an educational establishment that is geared towards meeting the needs and aspirations of the community through a three-tier curriculum. On successful completion of training, the trainee is awarded the International Technical Vocation Level 3 Certificate of London City and Guilds and/or the Nigerian Skills Technical Certificate. From October 2009 till date, 278 students have been admitted into the mainstream programme while a total of 100 indigenous companies representatives have been admitted into Project and Procurement Administration qualifications. It has also received accreditation and new qualifications in food

Integrated Top Up Scheme


This was established in 1997 as Bonny Education Endowment Fund to top up Bonny teachers salaries. Over the years, NLNG has spent over N60 million on the project. It currently has about 190 academic and nonacademic staff from CSS Bonny, CSS Burukiri, GGSS Finima and BNGS Bonny. Although, this initially was an incentive to encourage teachers to remain in the classroom rather than move over to construction sites where the pay was more attractive. However, the scheme has been reviewed to be performance driven, as teachers classroom performances are appraised on a quarterly basis to provide a basis for such support. As part of its Education Support, NLNG also:

leverage for those involved in agro-enterprises whose capacities have been built beyond the scope of the accumulated savings and credit associations. To broaden the financial base of this programme, NLNG has gone into a tripartite Partnership with the Central Bank of Nigeria (CBN) and First Bank of Nigeria PLC. Development Initiatives (DEVIN) and Growing Businesses Foundation (GBF) were contracted as implementing partners of the programme. The NGOs are mentoring organizations with hands on experience in rural capacity building and have the role of formalizing the traditional village-level banking culture in a manner that is transparent, accountable and verifiable. 20 cooperatives were supported with N38.5m as loans. The micro credit scheme, which acted as the launch base for the micro-finance programme, also provided an avenue for the financial support to 40 cooperatives in 2010; with over N38 million naira provided for disbursement.

Youth Empowerment Scheme (YES)


The Youth Empowerment Scheme was launched in 2004 as a sustainable development initiative targeted at youths (1835 years) within NLNGs host communities. YES is designed

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2010 Economic Empowerment Development Day

During the pilot phase, 50 participants were trained and supported in agro enterprise development at the African Regional Aqua Culture Centre (ARAC) in Aluu, Port Harcourt and a second batch of 52 were also been trained and supported in the development of farming practices and yield improvement in roots, tuber and plantain production at the National Root Crops Research Institute, Umudike (NRCRI), in January 2007. Over 4,000 farmers have also attended various road shows across host communities in the past one year aimed at bringing home emerging practices on agro enterprises by our partnership with the NRCRI and ARAC. The execution strategy evolved in 2009 to having a close-knit selection of agro-business entrepreneurs who

were exposed to emerging thoughts and best practices in Agro Business Development and Management. The scheme currently has 300 agro-entrepreneurs from host communities who have formed the N-AGENDA Farmers Association (NFA) to enable them promote market linkages, harness group synergy, encourage value adding services and sustainably initiate change in the traditional agricultural practices within their communities. The scheme is being implemented on behalf of NLNG by Anpez Centre for Environment and Development. Business Development / Advisory Support Services Launched in October 2006, the Business Development Advisory Support Services is designed to provide accessible, high quality and complimentary business

development and management support services to entrepreneurs in the host communities. It serves as a warehouse of information on business opportunities and emerging markets and supports the entrepreneur with new business ideas, product management, feasibility studies and cash flow analysis. Its implementation helped to complement the gains of other economic empowerment programmes and filled identified gaps in business planning and management skills of 126 entrepreneurs from Abua, Ekpeye and Emohua. The scheme is being implemented on behalf of NLNG by Synergy For Development Center.

Host Communities Benefits from Empowerment Programmes Increased commercial activities spurred by infusion of capital and new skills Reduced poverty level Integrated financial and technical services to small businesses Creation of avenues for self-employment, plus reduced dependency Encouragement of savings and entrepreneurial habits Training and capacity building.

YES Beneficiaries

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The Nigeria Prize for


and

Science

The Nigeria Prize for

Literature

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THE THE

NIGERIA NIGERIA

PRIZE PRIZE

F O R S C I E N C E & F O R L I T E R AT U R E

THE NIGERIA PRIZE FOR SCIENCE & THE NIGERIA PRIZE FOR LITERATURE

Prof. Akaehomen Ibhadode, winner of the science prize, lifts his prize

2010 Grand Award Night in Lagos

he Nigeria Prize for Science and The Nigeria Prize for Literature are registered charities (companies limited by guarantee) with Corporate Affairs Commission. The prizes are aimed at bringing Nigerian scientists and authors to public attention and celebrating excellence in scientific breakthroughs and literary craftsmanship in the nation.

NLNG believes that the science prize will save scientists from their current low rating in national estimation; provide leaders with answers to crucial issues in development; and improve the standards of living. And with the Nigeria Prize for Literature, it is expected that the quest for a prestigious prize will improve the quality of writing, editing, proof-reading, and publishing in the country with far-reaching positive effect on print and broadcast journalism.

The prizes are administered, on behalf of Nigeria LNG Limited, by the Nigerian Academy of Science and Nigerian Academy of Letters. The prizes come with a prize money of $50, 000 each. It started with $20, 000 in 2004 and was increased in 2006 to $30, 000. In 2008, it was again upped to the current amount to drive the science and authorship. FACTS & FIGURES ON NLNG 2011

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Guest of Honour, Sam Loco Efe

Osondu Irobi speaks on behalf of late Esiaba Irobi

Prof. Ibhadode

President, the Nigerian Academy of Science, Prof. Oye Ibidapo - Obe

Chima Ibeneche, MD, NLNG giving the keynote speech at Grand Award Night 2010

From left, Osondu Irobi, Prof Ibadode, Mr Ibeneche, Ahmed Yerima and Dr. Adinoyi Onukaba

Amanyanabo of Grand Bonny Kingdom, HRM, King Asimini Dappa - Pepple III

Chief Joob Berkhout and Mr Ibeneche

Deputy MD, NLNG, Basheer Koko

The prizes are awarded at the Grand Award Night which holds in the second week of October, commemorating the first export of LNG cargo by the company on October 9, 1999. Eight years on, the Grand Award Night has taken a revered place in the order of social events in the country whilst honouring ingenuity in a colourful ceremony deserving of the winners.
Right, Chairman, NLNG Board of Director, Dr Osobonye Long John and Sam Loco Efe

literature prize on Prose Fiction. However, three authors, Bina Nengi-Ilagha, Omo Uwaifo and Prof Akachi AdimoraEzeigbo received honourable mention for their efforts. In 2005, there were no winners for the science prize whilst joint winners emerged for the literature prize which focused on Poetry. Ezenwa Ohaeto and Gabriel Okara were awarded for their books Chants of a Minstrel and The Dreamer respectively. Professor Micheal Adikwu in 2006 showed in his winning work, Wound Healing Devices (Formulations) Containing Snail Mucin, that snails mucins can play a key role in the pharmaceutical industry as a drug delivery agent. Dr Ahmed Yerima claimed the prize in literature (drama) for his book Hard Ground. Again, in 2007 there was no winner for the science prize and joint winners emerged for the literature prize on

In 2004, Professor Akpoveta Susu and his then doctoral student (now doctor) Kingsley Abhulimen, both of the University of Lagos, won the maiden edition of the science prize. They won based on their work Real-Time Computer Assisted Leak Detection/Location Reporting and Inventory Loss Monitoring System. Which was described by judges as an outstanding contribution to research in real-time leak detection in a network of pipelines, or other flow systems, carrying liquids. That year, there was no winner for the

childrens literature. Professor Akachi Adimora-Ezeigbo and Mabel Segun won with their books, My Cousin Sammy and Readers Theatre: Twelve Plays for Young People. Dr Ebenezer Meshida emerged winner of the 2008 science prize with his work Solution to Road Pavement Destabilisaion by the Invention of Lateralite: A Stabilisation Flux for Fine Grained Lateritic Soils which will make Nigerian roads durable through the elimination of potholes, gullies and erosion. The literature prize in 2008 returned to Prose Fiction. In 2008, Kaine Agary won the prize with her first book, Yellow Yellow. The 6th year of the prizes saw Professor Andrew Nok winning the science prize in 2009 for his ground-breaking discovery of the gene responsible for the creation of Sialidase (SD), an enzyme which causes sleeping sickness (Trypanosomiasis). No winner emerged for the literature prize.

Professor Akaehomen O. Akii Ibhadode, for his work in the development of a new method in Die Design, was crowned winner of the science prize in 2010. That year, the prize continued its circle with Drama, the genre in focus. The literature prize got it first post-humous winner, Dr Esiaba Irobi, who won the prize with his book Cemetery Road. He died May 3, 2010 after turning in his work for the competition. The seventh Grand Award Night in 2010 was a memorable one. In addition to celebrating the prizes winners, Nigeria LNG Limited, in partnership with the Nigerian Academy of Sciences, the Nigerian Academy of Letters and the National Gallery of Art, inducted 28 eminent men and women into The Nigerian Hall of Fame for Science and The Nigerian Hall of Fame for Letters. These leading lights were recognized for their great accomplishments and putting Nigeria on the world science and literary map.

A dance group, Beeta Universal

GM, External Relations, Siene Allwell-Brown, and Mrs Ugo Ibeneche

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INDUCTEES OF HALLS OF FAME FOR SCIENCE AND LETTERS

THE NIGERIA PRIZE FOR SCIENCE & THE NIGERIA PRIZE FOR LITERATURE

10

1. Umaru Shehu 2. Ayo Bamgbose 3. Ade Ajayi 4. Representative of Fela Anikulapo-Kuti, Yemisi Ransome-Kuti 5. Prof. Ibidapo - Obe decorates Sylvester Adegoke 6. Emmanuel Obiechina 7. Adenike Abiose 8. Mustapha Imam on behalf of Abubakar Imam 9. Oladipo Akinkugbe 10. Guests at Grand Award Night 2010 11. Emeka Dike, Son of Kenneth Dike 12. Idris Mohammed 13. Guests at Grand Award Night 2010 11 12 13

Prof. Ibhadode, his family and friends celebrate

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