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NNPC, Partners To Rake In Over $760 Million Revenue From OML 130 Gas Supply Agreements

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From Left: Managing Director of SAPETRO, Mr Toyin Adenuga, MD TEPNG, Mr Mike Sangstar, GMD NNPC, Mallam Mele Kyari, Rep of CNOOC Mr. Yuguang Pan and MD Prime 130 Limited, Mr. Emeka Phil Ebasie, at the execution of OML 130 Gas Supply Agreements ..

The Nigerian National Petroleum Corporation (NNPC) and its partners in the Oil Mining Lease (OML 130) Production Sharing Agreements (PSA) and Production Sharing Contract (PSC) are set to earn over $760m from fresh Gas Supply Purchase Agreements (GSPAs) and Gas Entitlement Agreement (GEA) executed Thursday at the NNPC Towers.

The agreements which are part of the Corporation’s gas commercialization programme involve Total Exploration and Production Nigeria (TEPNG), China National Offshore Oil Corporation (CNOOC), South Atlantic Petroleum Nigeria Limited (SAPETRO) and Prime 130 Limited.

The sale structure under which the agreements were executed is designed to provide a clear delineation for the allocation of the gas sale proceeds to all the participating parties, including midstream handling and transportation.

“This a very proud moment for all of us. I understand all the delays, they are completely unavoidable. It is desirable for us to have full alignment of all parties before we proceed. The end result is that there would be clarity around our relationship and we would be unlocking resources that have been on the table for many years. We now have a clear line of sight around gas revenue of up to $250million dollars, and also another $510 million dollars that is applicable to the rest of us,” Mallam Kyari enthused.

He noted that apart from the revenue boost, the agreements have also opened up an opportunity to have the dispute settlement agreement for the OML 130 PSC and ultimately to have a renewed production sharing contract which would now guide the relationship going forward.

On the recently passed Petroleum Industry Bill, the GMD assured the parties that the fiscal terms proposed in the oil reform legislation remain some of the most attractive in the global oil and gas industry, noting that investors have no cause to worry.

In his response, Mr. Mike Sangster, Managing Director of TEPNG, expressed delight at the signing of the agreements, adding that the parties were committed to the terms of the agreements.

He commended the GMD and the NNPC for their vigorous pursuit of the aspiration of the decade of gas programme of the Federal Government.

OML 130 is a deepwater block located 130kilometres offshore Niger Delta at water depths of well over 1000metres. The block contains the producing Akpo and Egina fields and Preowei discovery.

The asset originally known as Oil Prospecting License (OPL) 246 was awarded in 1998 to SAPETRO and was later converted to OML 130 in February 2005 after commercial discovery of oil in Akpo and Egina in 2000 and 2003 respectively.

At conversion, the Federal Government, represented by NNPC, exercised its rights as concessionaire of the block in April 2005 whereby it entered into a PSC with SAPETRO as contractor and TUPNI as operator for 50% of the interest in OML 130 PSC and a Production Sharing Agreement (PSA) between TUPNI, SAPETRO and PRIME 130 for the other 50% interest in the OML 130 block.

In April 2006, SAPETRO farmed-out 90% of its Contractor interest in the OML 130 PSC to CNOOC.

The remaining reserves on the block are estimated at One billion barrels of liquids and over 1.2trillion cubic feet of natural gas.

Gas from the block was transported and sold to the Nigeria Liquefied Natural Gas (NLNG) via the Akpo-Amenam Gas Pipeline and was funded in kind by the PSC under the Gas Utilization Agreements (GUAs) for a consideration of 1TCF of gas which was achieved in July 2018, thus terminating the GUA.

It was projected that the parties would agree on the post- 1TCF regime for the monetization of the gas upon the expiration of the GUA. However due to underlying disputes on the PSC and other reasons, the post-1TCF regime was never agreed upon.

The new agreements offer the gas sales framework for the 100% volume under the PSC and the PSA, according to a statement by Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division of the NNPC.

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Aviation

FG TO PARTNER WITH HUNGARIAN COMPANY TO PRODUCE AIRPLANES IN NIGERIA

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In line with its desire to bequeath sustainable growth and development in the aviation sector, the Federal Government has expressed its readiness to partner with the Magnus aircraft Manufacturing industry in Hungary to establish an assembling plant and begin to manufacture in Nigeria from start to finish before the end of the Buhari administration.

The Minister of Aviation Senator Hadi Sirika expressed the interest when he paid an inspection visit to the Magnus Aircraft Industry in Pogany, Hungary.

He explained that “if we venture we them, we may start with assembling plant and later manufacturing”, adding that the Magnus aircraft is an aeroplane that is good for Military training, has an aerobatic manoeuvre and is made of fully composite materials high strength and very lightweight.

Sirika being briefed by officials of Magnus

A statement by the Director of Public Affairs Ministry of Aviation, Dr James Odaudu described Aerobatics as the practice of flying manoeuvres involving aircraft attitudes that are not used in normal flight. Aerobatics are performed in airplanes and gliders for training, recreation, entertainment, and sport.

The statement further quoted Sirika as saying he was very satisfied with the features and more than willing to facilitate the production of the aeroplanes in Nigeria, saying one of the significant features of the Magnus aircraft is that it uses normal car petrol and outperforms any training aircraft of its kind”

The Minister who was at the facility on the invitation of the Company, said the proposed partnership with the aircraft manufacturer will be subjected to further analysis to verify the market and government willingness to partner with a significant amount of money and logistics.

He emphasized that the local production of aircrafts in the country will facilitate the growth of Nigeria as a regional aviation super power as it will also come with maintenance and repair facilities that will attract patronage from neighbouring countries.

Sirika trying his hands on the Magnus aircraft

According to him, the present administration has created an attractive environment for international investors in Nigeria, especially in the aviation sector, with the ongoing implementation of the development roadmap which places emphasis on public private partnerships.

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Request For Qualification for the Concession of Airport Terminals

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AIRPORTS CONCESSION GATHERS MOMENTUM, AS FG RELEASES REQUEST FOR QUALIFICATION

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The Federal Government through the Ministry of Aviation in compliance with the Infrastructure Concession Regulatory Commission (ICRC) and National Policy on Public-Private Partnership (N4P) has released a request for qualification for the concession of four International Airport terminals and related services.

In the document signed by the Permanent Secretary, Federal Ministry of Aviation, Engr. Hassan Musa, the four major commercial airports; Nnamdi Azikiwe International Airport Abuja; Murtala Muhammed Internatıonal Aırport Lagos; Malam Amınu Kano Internatıonal Aırport and Portharcourt Internatıonal Aırport and surrounding communities are intended to develop into efficient, profitable, self-sustaining, commercial hubs which will create more jobs and develop local industries through a Public-Private Partnership (PPP) arrangement.

A statement by the Director of Media and Public Affairs Ministry of Aviation,  Dr James Odaudu quotes the document saying “The Federal Government of Nigeria (FGN) through the Ministry of Aviation is inviting bids from reputable Airport Developers/Operators/Financiers/Consortia for prequalification for the Concession of selected Airports Terminals under a Public-Private Partnership (PPP) arrangement”.
It further stated that “The airport’s terminal concession is one of the critical projects under the Aviation Sector Roadmap of the FGN and fits well within the scope of the Ministry’s strategic plan for the sector. The execution of this project is meant to achieve the Federal Government’s objective in terms of air transport value chain growth by developing and profitably managing customer-centric airport facilities for safe, secure and efficient carriage of passengers and goods at world-class standards of quality”.

Hadi Sirika
Minister of Aviation

According to the document the eligibility requirements are; “Full names of firm/consortia; Evidence of Company Registration; Ownership structure of bidding entity; Audited Financial Statements; Sworn affidavit; Power of Attorney/Board Resolution and in the case of a consortium, evidence in the form of a letter of association agreement”.

It explained that to be prequalified for consideration as a prospective PPP partner for the project, the prospective firms/consortia must have technical, operational and financial capability including; Experience in the Development and Operation of an International Airport and Cargo Terminals; Evidence of Financial Capacity in support of the company or consortium’s ability to undertake the airport concession illustrated by a minimum net worth of NGN 30 billion and Letters of Support from credible financial institutions in support of the consortium’s ability to manage and operate the Airports terminals.

“The modalities for application submission shall be in a sealed envelope containing 7 copies neatly bound (1 original and 6 copies clearly marked) of the completed RFQ and the required supporting documents, which shall be clearly marked “RFQ for the Concession of Airport Terminals’ and address to the Permanent Secretary, Federal Ministry of Aviation, Federal Secretariat Complex Abuja.

The Application shall be submitted either physically or by pre-paid, registered/certified mail or courier to the address provided. The submission shall be on or before 15:00 hours Nigerian Time (14.00hrs GMT) on 27th September 2021”. It explained.
The request emphasis that the RFQ is the pre-qualification stage of the procurement process for the Project in which interested parties are required to meet the pre-qualification requirements specified in the RFQ package. Only pre-qualified parties will proceed to the Request for Proposal (RFP) stage and shall execute a Non-Disclosure Agreement prior to issuance of the RFP documents.

The document urged the interested international parties to partner with local firms in compliance with the requirements of the Federal Government of Nigeria local content development policy while submission of RFQs through electronic media will not be considered.

The document also states that additional information, can be found on the website: https://nacp.aviation.gov.ng

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