Final investment decision for Nigeria Liquified Natural Gas’ (NLNG) Train 7 project has encountered another delay after the Federal Government, Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni failed to reach an agreement.
In the past 10 years, there have been series of delay, before the recent meeting, the Final Investment Decision was expected to be signed in October according to Nigeria LNG’s Chief Executive Officer, Tony Attah. This was a month after NLNG named Saipem, Chiyoda Corporation and Daewoo Engineering & Construction Co. Limited as the successful bidders to build the plant.
While the Group Managing Director, NNPC, Mele Kyari, had announced in last month that the final decision would be taken this month, it’s unknown if such feat would be achieved.
Nigeria LNG is a company co-owned by the NNPC (representing the Federal government) which holds a 49% stake, while the other stakeholders, Shell has 25.6 percent, Total holds 15 percent and Eni accounts for 10.4 percent.
Why the delay on investment? According to a report by Punch, there are areas in the agreement that still needs deliberation and until they’ve been addressed, nothing can be signed in a hurry.
“They didn’t finish the pre-signing formality for which reason they had to delay the signing. They are trying to dot the I’s and cross the t’s; until they are done, they can’t be in a hurry to take the FID,” A source said.