Chairman, Brass LNG Ltd, Dr. Jackson Gaius-Obaseki, has said positive engagement between the company’s shareholders with the federal government and quick decision making by both remained critical steps needed for an early Final Investment Decision (FID) for the firm.
Speaking at the company’s 9th Annual General Meeting (AGM) in Abuja, Gaius-Obaseki said: “Finally, let me close by still maintaining that FID is possible in the shortest possible time, but, only if the shareholders and government will embark on the necessary engagement to address the remaining obstacles. I remain optimistic that our shareholders and ever-supportive government will rise to this challenge. Engagement and quick decision making is highly recommended.”
His call was hinged on the ‘sudden and unexpected’ exit of one of Brass LNG’s shareholders and United States multi-national oil company, ConocoPhillips, from the project that has expectedly affected the gas company’s hitherto smooth ride towards the FID.
He explained that despite the exit of ConocoPhillips, the three remaining shareholders in the project, the Nigerian National Petroleum Corporation (NNPC) with an equity stake of 49 per cent; Eni with 17 per cent stake and Total also with 17 per cent shareholding, have all galvanised to cushion the shock and would now go ahead to sort out other conditions precedent to an early FID.
“In my address to the AGM last year, you may recall that I expressed the view that the final investment decision for the Brass LNG project was possible within year 2013 with the full commitment and unwavering efforts of all the project participants.
“At that point, it was not envisaged that the COP’s (ConocoPhillips) exit through the announced sale of their shareholding with its dampening effect on morale and confidence will be protracted. Notwithstanding this, I applaud the management and board for the numerous key accomplishments,” he said.
ConocoPhillips had pulled out of the project and some of its other concerns in Nigeria, citing changes in its global business focus and strategy away from Nigeria.
Gaius-Obaseki however said: “The recent challenges have indeed served to highlight the resilience of the Brass LNG project.”