The Nigerian National Petroleum Corporation Limited (NNPCL) has pledged to revive the Olokola and the Brass Liquefied Natural Gas (LNG) projects, both worth $28.9 million.
This pledge is coming after various failed promises by the NNPC and the federal government to revive the same projects in the past.
The Olokola LNG project was conceived by the administration of President Olusegun Obasanjo, to diversify Nigeria’s oil and gas investments, and boost energy sources.
The Brass LNG project was initiated in 2006 as a joint venture between the NNPC with 49 per cent, and Italian oil firm Eni , French energy giant Total and ConocoPhillips. However, successive administrations after Obasanjo stalled the project.
Last year, the NNPC said it was in talks with some offshore investors to resuscitate both projects in order to meet local and international demands for LNG. But nothing was heard of the negotiations afterward.
On Thursday, the NNPC promised to revive them again, saying it was discussing with investors.
The Chief Financial Officer (CFO) of NNPC, Umar Ajiya, disclosed this at the 2024 Gas Technology Conference and Exhibition (Gastech) in Houston, United States, on Thursday.
“In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure (CAPEX), and this was a dis-incentive for investors and partners. Also, there was slow decision-making by the political class,” Ajiya said
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