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FACTS & FIGURES ON NLNG 2014

Facts & Figures on NLNG 2014

Facts & Figures on NLNG 2014

CONTENTS
The Company

Management Prole

11

The Plant

20

NLNG and its Contributions


to the Nigerian Economy

25

Gas Supply

32

Commercial

34

Shipping

38

Financing

51

Nigerian Content

56

The Environment

65

Community Relations
and Development

72

The Nigeria Prizes


for Science and Literature

92

Cover:
The image on the cover of this booklet shows Ikaki, a traditional cloth native to the people of Bonny
Kingdom, the production of which involves an intricate weaving process.

Facts & Figures on NLNG 2014

Facts & Figures on NLNG 2014

Nigeria Ltd (15%) and Eni (10.4%).


The company has two whollyowned subsidiaries: Bonny Gas
Transport (BGT) Limited and NLNG Ship Management Limited
(NSML).

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, NLNG's shareholders.

NLNG Ship Management Limited

THE COMPANY

NLNG Ship Management Limited (NSML) is another whollyowned subsidiary of NLNG. The company was set up in 2008
to realise NLNG's vision of resourcing, developing and
managing shipboard personnel for BGT vessels.

Nigeria LNG Limited (NLNG) was incorporated as a limited


liability company on May 17, 1989 to harness Nigeria's vast
natural gas resources and produce Liqueed Natural Gas
(LNG) and Natural Gas Liquids (NGLs) for export.
It is owned by four shareholders, namely, the Federal
Government of Nigeria, represented by Nigerian National
Petroleum Corporation (49%); Shell (25.6%); Total LNG

Facts & Figures on NLNG 2014

for its operational excellence, cost leadership, high HSE


standards, honesty and integrity.
We help to build a better Nigeria by processing, shipping and
marketing efciently and protably the country's gas resources
and by putting out the ares, 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 fullling 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.

Our Mission
Our Vision
a global LNG company helping to build a better Nigeria.
Nigeria LNG Limited will be a global LNG company renowned

To market, produce and deliver liqueed natural gas and


natural gas liquids to buyers safely, reliably and protably,
growing our company and its people to their full potential, and
being a trusted partner with all our stakeholders in the
sustainable development of Nigeria's gas industry and NLNG
host communities.

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Our People
Nigeria LNG Limited's workforce comprises direct-hire staff
and secondees from shareholder companies, working together
to achieve the company's corporate objectives, through a set of
shared values.
Direct staff are recruited after a rigorous interview following the
advertisement of vacancies on the company's website and in
national newspapers. Employment and appointments are made
on merit, based on academic qualication, 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

SHAREHOLDERS

Facts & Figures on NLNG 2014

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 industry - exploration,
production, rening, pipelines, marketing, crude/product
exports, and petrochemicals. NNPC owns 49% of the shares
in Nigeria LNG Limited.

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
Pacic. It is a member of the Royal Dutch Shell Group of
Companies which operates throughout the world in all subsectors of the petroleum industry. SGBV owns 25.6% 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. It explores in more
than 130 countries. The company is Nigeria's fourthlargest 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.

Shell Gas BV (SGBV)

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

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 world's
largest and most complex gas projects. Besides its interest in
Nigeria LNG Limited, Shell Gas holds the largest equity share

Eni is one of the world's major integrated oil and gas


companies engaged in all sectors of the petroleum business. It
is involved in exploration, development and production of oil
and natural gas in 70 countries. Eni owns 10.4% of the shares
in Nigeria LNG Limited.

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NLNG Board of Directors


Osobonye R. LongJohn
Babs Omotowa
Basheer Abubakar Koko
Andrew Yakubu
Danladi Kifasi
Cordelia C. Agboti
Bagudu Hirse
Ruud de Jongh
Markus Droll
Ronnie Aker
Guy Maurice
Carlo Bottaro
Edith Unuigbe

Chairman
Managing Director/Chief
Executive Ofcer
Deputy Managing Director

Luc Gillet
Donald H. Malcolm
David Astwood
Malcolm Mitchell

Company Secretary

NSML Board of Directors

General Counsel/
Company Secretary

David Ige
Basheer Abubakar Koko
John Meredith
Maikanti Baru
Richard Eccleston
Temilola Okesanjo
Laurent Routisseau
Antonino Fiore
Edith Unuigbe

Chairman
Vice Chairman

Company Secretary

BGT Board of Directors


Osobonye R. LongJohn
Babs Omotowa
Basheer Abubakar Koko
Andrew Yakubu
Danladi Kifasi
Aleruchi Cookey-Gam
Umaru Dahiru
Ruud de Jongh
Richard Eccleston
Ronnie Aker
Antonino Fiore

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President
Vice President

10

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NLNG MANAGEMENT PROFILE


Managing
Director/Chief
Executive Ofcer
Babs Omotowa has over 20
years experience in the oil and
gas industry. Prior to coming to
Nigeria LNG Limited, he was, at
various times, Vice President,
HSE, Infrastructure and Logistics
for Shell companies in SubSahara Africa, a Director of
Shell Petroleum Development Company (SPDC), Nigeria and
also Director of West Africa Pipeline Company.
Babs Jolayemi Omotowa holds a degree in Industrial
Chemistry and a Master of Business Administration
(Operations Research) from the University of Ilorin. He also
holds a Master of Business Administration (Supply Chain
Management) from University of Leicester, United Kingdom.
After a brief stint as a chemistry and mathematics teacher at
Bishop Smith College, Ilorin, he joined Shell Petroleum
Development Company (SPDC) in 1993 where he started his
career as a management trainee and rose rapidly to Head,
Operations Support, Warri, before he went on international
assignments with Shell in the United Kingdom, Holland, and

Facts & Figures on NLNG 2014

Norway, serving variously as Production Asset Manager,


Shipping Manager and Business Improvement Manager. He
returned to Nigeria in 2006 as General Manager Supply
Chain for SNEPCo and later SPDC, and he is a Fellow, UK
Chartered Institute of Supply, London
Over his distinguished career across Europe and Africa, Babs
has been renowned for strategic transformation, reengineering, successful turnaround, as well as maximizing
value chains. His stated goal in NLNG is to sustain the
historical excellent performance, move the company to the next
level and make NLNG an inspiration to Nigeria.

Deputy Managing Director


Basheer Abubakar Koko holds a Post Graduate Diploma in
Petroleum Economics from
Oxford in the United Kingdom
and a Bachelor in Business
Administration from Ohio
University, United States of
America. These are
complemented by numerous
international courses and
development attachments in
Harvard University; The
Wharton School of the
University of Pennsylvania; IMD,
Lausanne, Switzerland and energy companies in the United
Kingdom, Italy, America and Canada. He is also a fellow of

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the Energy Institute, UK.


With considerable experience (over 30 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 Renery, he has held several key positions
including Manager, Marketing and Sales at Eleme
Petrochemicals, Port Harcourt (1997-1998); Manager,
Marketing and Shipping, LNG Division (1999-2003); and
Executive Director (Services) of Kaduna Rening and
Petrochemical Company Limited (November 2003-September
2007).
Earlier, he was Special Assistant to the Honourable Minister of
Petroleum Resources/ OPEC President (May-November 1988)
and the Technical Assistant to the Honourable Minister of State
for Petroleum Resources (February-August 1998). Between
2001 and 2003, Basheer participated in MOU/SPA
negotiations with potential buyers of volumes from NLNG Plus
(Trains 4 & 5) as the Head of NNPC representatives. He has
also been the Representative of NNPC to NLNG Shipping
Advisory Committee (SAC) and Marketing Advisory Committee
(MAC).
Basheer was President of Calson Bermuda Limited,
NNPC/Vitol Group Joint Venture, and Managing Director,
Hyson (Nig) Limited, another of NNPC/ Vitol Joint Venture
from 2007 before he came to NLNG in 2009.

12

General Manager, Production


Chima Isilebo is the General Manager, Production at the plant
complex in Bonny, Rivers State.
Chima is a seasoned
professional with more than 30
years oil and gas industry
experience in both Upstream
and Midstream businesses,
covering diverse disciplines
including Engineering and
Project Management, HSSE, Risk
and Quality Management,
Business Planning/Economics,
Venture Governance, LNG Commercial/Business Development
as well as Operations/ Asset Management.
A 1980 graduate of the University of Nigeria, Nsukka with a
First Class (Hons.) degree in Mechanical Engineering, Chima
joined Shell Nigeria in August 1981, and has had a series of
challenging assignments in various locations both within
Nigeria and around the world including, Europe (UK and The
Netherlands), the Middle East (Oman) and South East Asia
(Brunei and Singapore). Following early carrier assignments in
Engineering/Project Management, HSSE, Business
Planning/Economics, he worked as Operations Adviser at
Shell UK Exploration & Production and Operations
Support/HSEQ Manager at Brunei LNG, before being
appointed as the Start-Up Manager (in 2004), and the rst

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Nigerian Operations Manager for Nigeria LNG Limited


(NLNG) in 2006.
Between 2008 and 2010, he was back in Shell Gas & Power
(later Upstream International) in Singapore as Vice President
for South-East Asia region, with responsibility for New Business
Development in Indonesia, Philippines, Thailand, Vietnam, as
well as Governance of existing ventures in Brunei and
Malaysia.
In that capacity, he served as a Director on the boards of a
number of Shell Joint Venture companies in Brunei and
Malaysia, including Brunei Shell Petroleum (BSP), Brunei LNG
(BLNG), Brunei Shell Tankers (BST), Brunei Gas Carriers (BGC)
and Shell Gas-to-Liquid Plant (SMDS) in Malaysia.
He returned to NLNG again in 2011 as the rst Nigerian
General Manager, Production (PD).

General Manager,
Commercial
Patrick Olinma holds a bachelor
and a master of Law degrees
from the Universities of Benin
and Lagos respectively, as well
as a Master of Business
Administration (MBA) from the
Grand Ecole ESCP, Paris,
France.

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He began his career as a legal counsel in Abudu, Akinyemi &


Ogunde in 1990 and was managing counsel when he left the
law rm to join French oil giant Total Nigeria in 1996 where,
amongst other roles, he had oversight function of technical
services contract and advised operations teams on host
communities, conict 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 USD1.2 billion
unitisation & unit operating agreement for the Amenam/Kpono
elds off-shore, Nigeria, and the USD1.06 billion gas sellers'
direct agreement with lenders to 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 per year LNG Sales & Purchase Agreements with BG
Gas Marketing Limited and Occidental Energy Marketing Inc.
for NLNG's Train 7 Plus project. Before he came to Nigeria
LNG Limited as General Manager, Commercial in 2007,
Patrick was Deputy General Manager (NLNG Commercial) at
Total Exploration & Production Nigeria.

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General Manager,
Finance
Solomon Segun Folaranmi is a
chartered accountant with an
accounting degree from
University of Lagos, and a
Master of Business
Administration (MBA) from
University of Benin.
His career spans more than 30
years in corporate nance,
project accounting, investment portfolio management, joint
venture nancing, capital assets oversight and investor
relations. These are complement by numerous international
courses from Cambridge to Oxford.
He began his career at the University of Lagos as a Graduate
Assistant before joining NNPC in 1983 as a treasury
accountant. In 1986, he moved to Nigerian Gas Company
Limited where he spent 18 years as accountant in various gas
projects including Imo-River/Aba Gas Supply Project,
Alakiri/Onne Gas Supply Project, Escravos/Lagos Gas
pipeline project, Obigbo/Afam Gas Supply Project. He rose
through the ranks to become Finance Manager, CFO, in
2004.
In 2005, he left Nigerian Gas Company Limited for NNPC
London ofce where he served at different times as Finance
Manager and Acting General Manager, NNPC London

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Ofce, before proceeding to NNPC Pension Fund Limited in


2012 as the General Manager, Finance, where he managed
an investment and assets portfolio worth N270 billion.
In 2013, Solomon was appointed General Manager, Finance,
of Nigeria LNG Limited.

General Manager,
External Relations
Kudo Eresia-Eke, a seasoned
and accomplished
communicator and administrator
with rich experience in the
media, academia, government
and the oil and gas industry,
holds a PhD in Political Theory
from the University of Port
Harcourt, and a bachelor's
degree in Mass Communication from the University of Lagos.
He started his communication career straight from secondary
school, joining the Nigerian Television Authority as a presenter
and newscaster. He later served at the Daily Times, the
Guardian Newspaper, Rivers State Television, Radio Nigeria,
Radio Rivers, Sunray Group of Newspapers, from where he
resigned in defence of professional principles and ethics. For
years, he was also a columnist for the Vanguard Newspaper.
Kudo has a wealth of experience in Public Service, too. He
served variously as Rivers State Commissioner for Information

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and Culture and State Director of the National Orientation


Agency.
He has also enjoyed teaching stints in various universities in
Nigeria and South Africa and was the founding staff of the
Centre for Advanced Social Science, Port Harcourt.
Since joining the oil and gas industry 14 years ago as pioneer
Community Relations and Development Manager for Nigeria
LNG Limited, Kudo has served in other managerial positions
including Public Affairs Manager, and Government Relations
Manager. He is a prolic writer with numerous publications
spanning poetry, short stories, inspirational and academic
essays. He belongs to several professional organizations
including the International Association of Business
Communicators.

General Manager,
Human Resources
Peter Ogheneovo Odjoji
obtained a bachelor's degree in
Philosophy and a master's
degree in Industrial and Labour
Relations from the University of
Ibadan in 1980 and 1982
respectively. He is a member of
Nigeria Industrial Relations
Association and Institute of
Chartered Mediators and
Conciliations and an Associate Member of the Chartered

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Institute of Personnel Management of Nigeria (AIPM).


Peter's over 30 years work experience in the Nigerian oil and
gas industry kicked off at Warri Renery and Petrochemical
Company (WRPC), a subsidiary of Nigerian National
Petroleum Corporation, NNPC, in 1983 where he was
employed as an Industrial Relations Ofcer and rose to
become Head, Industrial Relations; Head, Recruitment, Records
and Appraisals; Head, Management Training; and Head,
Litigation & Discipline. He was the Secretary to WRPC Top
Management Committee and Services Executive Management
Committee for over eight years. In 1999, he was moved to the
Centre for Petroleum Studies, Kaduna where he handled NonTechnical Programmes.
He was transferred to NNPC Headquarters in 2001 where he
rose to the position of Manager, Employee Relations in 2006.
Peter has participated in over 20 Executive Committees
involving HR practices, Strategic Planning, Recruitment,
Management Promotions, Value and Vision, Discipline and
Total Quality Management. His career has recorded sterling
achievements, notably, the establishment of an Industrial
Relations System in NNPC adjudged to be the best in the
industry and the resolution of Industrial Relations conicts
involving some of the IOCs with the national unions. He was
Chairman and Coordinator of the Nigerian Oil & Gas Industry
Games (NOGIG) for 10 years.
He was also bestowed with several awards including the

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NNPC's Group Managing Directors Award for Excellence in


2005 and Best Employee Relations Manager in the Oil and
Gas Industry in 2006.
Before his appointment as General Manager, Human
Resources, Nigeria LNG Limited in January 2014, he was
General Manager, Human Resources in the Corporate
Headquarters of Nigerian National Petroleum Corporation
(NNPC). Married with children, Peter has attended numerous
senior management courses locally and internationally.

General Manager,
NLNG Shipping
Temilola Fatai Okesanjo started
his career in the maritime
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, he worked briey 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.

16

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 rst Nigerian employee to rise to the
position of General Manager, Shipping, in 2005. He has
inspired landmark achievements in the Shipping Division,
remarkably the setting up of the subsidiary, NLNG Ship
Management Limited (NSML), a ship management and
manning subsidiary company of Nigeria LNG Limited. He
currently leads the BGT Plus Project - a project that will deliver
six newbuild LNG Carriers into BGT Fleet in replacement of the
six old BGT LNG Carriers.

General
Counsel/Company
Secretary
Edith Unuigbe holds a
bachelor's degree in Law from
Obafemi Awolowo University,
Ile-Ife and a Master of Laws
degree from Harvard Law
School, Harvard University in
Cambridge. Massachusetts,

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USA. Edith qualied in the Mini MBA in Oil and Gas in


Houston USA in 2008; obtained the International Executive
Programme Certicate from Insead Business School,
Fontainebleau, France in 2009; attended and obtained a
Certicate in the Women's Leadership Forum (Innovative
Strategies) from Harvard University, Cambridge, Massachusetts
in 2011; and the Advanced Management Programme
Certicate from Wharton Business School, Pennsylvania, USA
in 2012.
She is the General Manager/General Counsel/Company
Secretary of Nigeria LNG Limited and Company Secretary of
NLNG Ship Management Limited.

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 her various roles, she drafted &
negotiated the Engineering, Procurement & Construction (EPC)
contracts for all NLNG expansion projects and Gas Sales
Agreements (GSAs) with the joint venture partners of NNPC. In
2006, she became the General Counsel/Company Secretary
of Nigeria LNG Limited where she manages NLNG's legal
services and provides secretariat services to the Boards of
Directors of NLNG, BGT and NSML.

Edith began her career in 1982 with the Ofce of the 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.
Her banking career began in UBA as a Legal Counsel,
Corporate Finance. In 1984, she joined Kapital Merchant
Bank Limited as legal ofcer and sub-manager. She moved up
to become the company's Legal Adviser/Company Secretary
in 1988 before leaving for Commercial Trust Bank Limited in
1990. At Commercial Trust Bank Limited, she was an AGM
and Group Head of the Investment Group, Financial Services
and Export Unit.

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18

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19

THE PLANT
In November 1995, a Final Investment Decision (FID) was
signed by the shareholders to build a Liqueed Natural Gas
(LNG) plant in Finima, Bonny Island in Rivers State. This was
followed in December 1995 by the award of a turnkey
Engineering, Procurement and Construction (EPC) contract to a
consortium of engineering rms comprising Technip,
Snamprogetti, M.W. Kellog and Japan Gas Corporation (TSKJ)
for the Plant (consisting of two trains - Trains 1 and 2, called
the Base Project), the Gas Transmission System (GTS) and the
Residential Area (RA).
Construction at the plant site commenced in February 1996
and on August 12, 1999, Train 2 was ready for start-up.
Production of LNG commenced on September 15. Train 1
subsequently came on stream on February 27, 2000.
The second phase of development, called Expansion Project,
commenced with an FID in February 1999 to develop Train 3
and the plant's condensate stabilisation system. Train 3 was
completed and came into operation in November 2002.
The next phase of development called the NLNGPlus project,
comprising Trains 4 and 5, commenced with an FID in March
2002. Train 4 came on stream in November 2005 and Train 5
was started up in February 2006.
NLNGSix project, consisting of Train 6 and additional

20

condensate processing, LPG storage and Jetty facilities


commenced with an FID in 2004. Train 6 became operational
in December 2007.
With six trains currently operational, the entire complex is
capable of producing 22 Million Tonnes Per Annum (mtpa) of
LNG, and 5 mtpa of NGLs (Liqueed Petroleum Gas (LPG) and
Condensate) from 3.5 Billion (standard) cubic feet per day
(Bcf/d) of natural gas intake.
Plans for building Train 7 that will lift the total production
capacity to 30 mtpa of LNG are currently progressing with
some preliminary early site preparation work initiated. Further
work awaits an FID by the shareholders.
The plant has rapidly and successfully made the transition from
a construction project to a stable production operation with
relentless focus on operational excellence, de-bottlenecking
and regular Turn-Around Maintenance (TAM) of the assets
whilst imbibing proven techniques and processes to maximise
production, and manage human interferences and impacts. All
these activities are underpinned by a Health, Safety, Security &
Environment (HSSE) culture that continually seeks improvements
in the safe and sustainable utilisation of our assets. Additional
projects are in development to extend and rejuvenate the
assets beyond their original design life.
The plant performance is regularly benchmarked internationally
with other LNG plants around the world and continues to rank

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amongst the biggest and top performers.

NLNG has, within a short span of time, grown in status to


become a very reliable supplier of LNG in the Atlantic Basin,
serving the European, North American and Far East markets.

10 gas turbine electricity generators with a combined


capacity of more than 320 MW

The Plant is built on 2.27 sq.km of largely reclaimed land in


Finima, Bonny Island. The main elements of the facilities
already in operation are:

Two LNG export jetties; one of which also exports LPG,


and the other also exports Condensate, with a combined
capacity of more than 400 loadings per year

24 LNG ships dedicated to the service of NLNG

A Materials Off-loading Jetty

A Passenger Jetty /terminal

A Residential Area (RA) covering an area of more than two


2 sq.km

Six LNG processing units (trains) with a total nameplate


processing capacity of 22 MTPA.
Diversied Gas Supply (Associated Gas & Non-Associated
Gas) and six main dedicated gas transmission pipelines
with four of them located on-shore

Four LNG storage tanks, each with a capacity of 84,200


cubic metres

A common fractionation plant to process LPG

A common condensate stabilisation plant

Three Condensate storage tanks, each with a capacity of


36,000 cubic metres

Four LPG refrigerated storage tanks, each with a capacity


of 65,000 cubic metres (two each for propane and butane)

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21

NLNG: Major Milestones


May 17, 1989
Incorporation of Nigeria LNG Limited
November, 1995
Final Investment Decision (FID) by shareholders for Trains 1
and 2
February, 1996
Commencement of plant construction
September, 1998
Completion of Gas Transmission System
February, 1999
Final Investment Decision (FID) by shareholders for Train 3
August 12, 1999
Plant Ready For Start-Up with Train 2
September 15, 1999
Commencement of production from Train 2
October 9, 1999
Export of rst LNG Cargo
February 27, 2000
Start-Up of Train 1
March 31, 2000
Completion of Initial Supply Period (Gas Supply Agreement
GSA)
April 4, 2000
Export of rst Condensate Cargo
May 25, 2000
Export of rst LNG Spot Cargo

22

August 5, 2000
Export of 50th LNG Cargo
September 21, 2000
Plant Commissioning Ceremony
February 4, 2001
Export of 100th LNG Cargo
September 30, 2001
End of Build-Up Period (GSA)
October 1, 2001
Commencement of Contract Year (GSA)
March 20, 2002
Final Investment Decision (FID) by shareholders for Trains 4
and 5
March 22, 2002
EPC Contract Award to TSKJ for Trains 4 and 5
November 7, 2002
Train 3 ready for Start-Up
November 28, 2002
Commencement of LNG production from Train 3
December 17, 2002
First LNG shipment from Train 3,
January 21, 2003
Signing of the USD1.6 billion loan for NLNGPlus
February, 2003
Start-Up of LPG Facility
June 25, 2003
First Shipment of LPG

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July, 2004
Final Investment Decision (FID) by shareholders for Train 6
(NLNGSix)
November, 2005
-Start-Up of Train 4
February, 2006
-Start-Up of Train 5
December, 2006
-1000th LNG Cargo
June, 2007
-Feedgas reception facilities for the 6-Train complex became
fully operational
October, 2007
-First Butane cargo destined for domestic market loaded
December, 2007
-Hand over of Train 6 to NLNG's Production Division. Record
rundown of LNG to storage tanks within nine days of handover
May, 2008 

-Nigerianisation of the Managing Director position
October, 2009


-10 years of LNG, NGLs production
October, 2010 


-Export of 2000th LNG cargo
December, 2012 

-Highest number of cargoes produced in a year (333)
January, 2014


-Shipment of 3000th LNG cargo

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Facts & Figures on NLNG 2014

NLNG AND ITS


CONTRIBUTIONS TO THE
NIGERIAN ECONOMY

purchases from oil producing companies, of which the Federal


Government of Nigeria owns 55%-60%.
Nigerias overall earnings from NLNG is now over 70%,
comprising of the 49% dividend, 30% CIT, and other taxes

With the incorporation of Nigeria LNG Limited (NLNG) on


17th May 1989, the LNG industry in Nigeria was born. It is
successfully harnessing associated gas volumes which would
otherwise have been ared. It is now also considered one of
the most important economic projects in Nigeria. NLNG has
already generated signicant revenues for the nation.

With its plant construction, the company has generated


considerable Foreign Direct Investment (FDI) for the country.
The project today has assets worth over USD13 billion. And
49% of this belongs to the country through the Nigerian
National Petroleum Corporation (NNPC).

Environmental Hazard Reduction

Gross Domestic Product (GDP)

NLNG has converted about 119 Bcm (billion standard cubic


metres) or 4.2 Tcf (trillion cubic feet) of Associated Gas (AG) to
exports as LNG and Natural Gas Liquids (NGLs), thus helping
to reduce gas aring by Upstream Companies from over 60%
to less than 25%. Flares are only permitted in order to
eliminate waste gas which cannot be converted to any further
use. Flares also act as safety systems for non-waste gas and
are released via pressure relief valves, when required, to ease
the strain on equipment.

Since it began operations, the company has contributed about


4% of Nigeria's Gross Domestic Product (GDP). As a good
corporate citizen, the company also contributes immensely to
national wealth and to the wellbeing of states in which it
operates, by paying all applicable taxes and tariffs. Beginning
from 2014, corporate income tax will exceed N220 billion per
annum, by far the highest in Nigeria and Sub-Sahara Africa.

Monetisation of Gas
NLNG mops up gas that would otherwise be ared, thus
making signicant contributions to the nation's income,
delivering in the last thirteen years over USD13 billion in
dividends. The company has paid over USD18 billion on gas

Facts & Figures on NLNG 2014

Foreign Direct Investment (FDI)

Job Creation
Nigeria LNG Limited provided more than 2,000 jobs each
construction year. Overall, the major sub-contractors employed
about 18,000 Nigerians in technical jobs in the Base Project
(Trains 1 and 2). About 500 expatriates played mainly
supervisory roles during the Base Project and were
understudied by the Nigerians whom they worked with. These

25

Nigerians, with enhanced skills, have long joined the country's


workforce, providing a support base for technology transfer
and industrialisation.
Local Content Development
An average of 46 local companies and 398 local suppliers
were involved throughout construction of the existing six trains.
A total of 11,284 Nigerians were trained and the percentage
of local content on community projects was 100% with a total
value of USD14.1 million during NLNG Plus (Trains 4 and 5)
and NLNGSix (Train Six) projects, where the community
project components were handled by NLNG.
In its present production phase, many Nigerian companies
have beneted from NLNG's Nigerian Content Policy which,
among other things, encourages full participation of
indigenous rms in the company's contracting and
procurement processes. One such beneciary is Enchep
Limited whose facilities were revamped with NLNG's help to
supply thousands of different sizes and ranges of gaskets to
Trains 4, 5 and 6. Dorman Long Nigeria Limited, also with
NLNG's help, has supplied steel structures and low-pressure
carbon steel vessels for Train 3. Yet other beneciaries include
AluminiumNow, Niger Delta Petroleum Resources, Nexans
Kabelmetal, Holborn Nigeria Limited, and Waste Pipes and
Drainages, to mention only a few.

Community Development
In our host communities, especially Bonny, housing, catering

26

and transportation enjoyed a boom as a result of huge capital


inow into the economy during NLNG's construction phase. A
number of industries were also attracted to the Island, notable
among which were banking and joint venture companies in the
area of equipment and spare parts manufacturing. This is in
addition to the over N25 billion NLNG has expended on
community projects over the years.

Facts & Figures on NLNG 2014

Domestic LPG supply


NLNG commenced the supply of Liqueed Petroleum Gas
(LPG) otherwise known as cooking gas to the domestic market
in 2007 when reneries became challenged. This is in line
with the company's commitment to contribute signicantly to
the stimulation and development of the domestic LPG market in
Nigeria. Our intervention brought down the price of cooking
gas from N7,000 to N3,500 per 12.5kg cylinder. NLNG has
signed sales and purchase Agreements (SPA) with off-takers (all
Nigeria companies) in which the company is now committed
to deliver 250,000 tonnes of LPG into the Nigerian market
annually.

Nigerianisation
NLNG and its shareholders agreed on a Nigerianisation
scheme on September 1, 1997. This was revisited and updated
in 2004. The objective of the scheme which was to Nigeranise
the company's workforce was achieved in 2012. It started by
recruiting Higher National Diploma graduates and training
them as technicians and operators. This is a deliberate policy
to enable the relatively young minds imbibe the skills, work
culture, discipline and professionalism that the business
requires. NLNG also instituted a staff training and
development drive for different cadres of technical staff to help
them acquire the requisite skills and competence for
management, supervisory and operational positions in the
company. The company continues to recruit young engineers
and other technical staff, as part of this initiative.

Facts & Figures on NLNG 2014

Following the successful close-out of the Nigerianisation


scheme, NLNG is currently engaged in staff domestication
(NLNGnisation) a gradual and phased development of
NLNG direct staff to occupy positions currently occupied by
shareholder staff (Non-Zoned Positions in NLNG).

Increased Shipping/Marine Human


Resources
With the incorporation of its rst subsidiary, Bonny Gas
Transport (BGT), in 1989, the LNG shipping industry in
Nigeria was born. Currently, NLNG, through NLNG Ship
Management Limited (NSML), another of its subsidiaries, is the
biggest employer of Nigerian seafarers on board its 13 NLNG
directly-owned carrier ships.
In order to ensure that Nigeria continues to expand its
capacity to produce capable seafarers, Nigeria LNG continues
to support the Maritime Academy oF Nigeria (MAN), Oron in
Akwa-Ibom State through provision of equipment and training
of personnel. MAN provides education, training and
upgrading of ofcer cadets to enable them to perform duties at
sea as Deck and Engineering ofcers. NLNG has trained
hundreds of sea-going ofcers, some to the level of Captains
and Chief Engineers.

Corporate Social Responsibility


Nigeria LNG Limited currently provides uninterrupted power to
over 200,000 inhabitants and businesses on Bonny Island
through a rural electrication project managed by the Bonny

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28

Facts & Figures on NLNG 2014

Utility Company (BUC). BUC is an initiative of NLNG-led Joint


Industry Companies (JIC) which also includes water supply to
the Island.
With its N500 million micro-nance scheme, NLNG has
brought alive the concept of good neighbourliness in its host
(Bonny) and 110 contiguous pipeline communities. These
pipeline communities have also enjoyed amenities from NLNG
such as roads, hospitals, schools, and supply of learning aids,
among others.
Nigeria LNG Limited also promotes the sciences and arts
through its sponsorship of The Nigeria Prize for Science and
The Nigeria Prize for Literature, one of the most prestigious
awards for excellence in science and literature in Africa, each
worth USD100,000 in prize money.

funding of the Bonny Vocational Centre (BVC). BVC is the only


accredited City & Guilds Centre in Nigeria. It empowers
youths with appropriate vocational skills that will make them
gainfully employed and capable of contributing meaningfully
to the development of themselves and the society.

Vendor Finance Scheme


NLNG recognises the fact that funding is the bane of the
Nigerian manufacturing industry. This led to the introduction of
USD 1 billion NLNG Local Vendors Financing Scheme (NLVFS)
which facilitates access to funds from participating banks by
NLNG-registered vendors (suppliers of goods or contractors of
services). This way, vendors get speedy access to nance for
their contracts, or procurement orders, at competitive rates.

Indeed, education is a special focus area for NLNG. The


company has earmarked N2 billion (USD12 million) for
the development of engineering education in six Nigerian
universities to support the countrys educational sector. NLNG
will spend N340 million (USD2 million) each on the
construction of modern engineering laboratories and supplying
them with cutting-edge equipment. The universities are
University of Ibadan, University of Ilorin, University of Port
Harcourt, University of Maiduguri, Ahmadu Bello University,
and University of Nigeria Nsukka.
The company promotes acquisition of vocational skills through

Facts & Figures on NLNG 2014

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30

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31

GAS SUPPLY
Nigeria is blessed with abundant reserves of associated and
non-associated gas estimated to be in excess of 180 Trillion
(standard) cubic feet (Tcf).
The country is ranked ninth in terms of proven natural gas
reserves in the world. The natural gas reserves are estimated to
be sufcient to sustain current production rates for over 60
years.

export NGL and gas projects such as the West African Gas
Pipeline Company (WAGPco) and, potentially, other future
LNG projects.
The NLNG six-train complex is the biggest gas consumer and
exporter in Nigeria with its current daily consumption of almost
3.5 bcfd, equivalent to the total daily consumption of
industrialised countries like the Netherlands.

Gas Production and Utilisation in Nigeria

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 nding it while in search of oil.
The government aims to eliminate all aring of gas associated
with the production of oil, and NLNG continues to play a
signicant part in this. In the period 19992013, NLNG has
converted 119 Bcm (billion standard cubic metres) or 4.2 Tcf
(trillion cubic feet) of Associated Gas (AG) to export products
(equivalent to more than 1460 LNG and NGL cargoes) which
otherwise would have been ared.
With further improvement in the collection of associated gas,
NLNG with its 6-Train LNG/NGL complex will reduce
upstream aring in Nigeria even further.
Other demands on the use of Nigeria's gas are domestic
power generation, domestic utilities and industries, as well as

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Facts & Figures on NLNG 2014

Gas Supply Agreements

Feedgas

Nigeria LNG Limited has long term Gas Supply Agreements


(GSAs) with three Joint Ventures (JVs) for the supply of natural
gas (feedgas) to the plant. These JVs are Shell Petroleum
Development Company of Nigeria Limited (SPDC), Total
Exploration Production Nigeria (TEPNG) and Nigerian Agip
Oil Company Limited (NAOC).

Feedgas is produced by the JVs from various concession areas


in the Niger Delta, from onshore and offshore elds and
supplied to NLNG under a long term Gas Supply Agreement
with each JV. The agreements ensure efcient gas supply to
the plant throughout the life of the projects.

Details of the agreements are as follows: (% vol. of gas supply


by each JV):

SPDC-JV is currently supplying feedgas from a number of elds


including Gbaran Ubie (with a capacity of 1.2 Bcf/d, which
started-up in June 2010), Soku, Bonny (on-shore), Bonga, and
EA (off-shore) supply facilities, each receiving gas from a wide
range of oil and gas elds.
Additionally, under a special supply arrangement with the
SPDC-JV, an indigenous marginal eld concessionaire
/operator - Niger Delta Petroleum Resources (NDPR)
commenced natural gas supply to NLNG in November 2012
from its Ogbelle-Obumeze oil and gas process facilities. At
35mmcf/d, it currently supplies 1 % of NLNG daily feedstock
with potential to grow to 100mmscf/d.

Legend:
*
NNPC SPDC NAOC EPNL -

Operator
Nigerian National Petroleum Corporation
Shell Petroleum Development Company of
Nigeria Limited (Shell Afliate)
Nigerian Agip Oil Company Limited (Eni afliate)
Total Exploration Production Nigeria (Total Afliate)

Facts & Figures on NLNG 2014

The NAOC-JV supplies gas to NLNG from its Obiafu-Obrikom


(OB-OB) Integrated Gas Supply centre which receives gas
from a wide range of elds including Idu, Akri, Kwale, Irri,
Oshie, Tebidaba and Ebocha oil and gas elds.
The TEPNG-JV derives gas supplied to the plant from the onshore Obite, Ibewa and Obagi elds. Additionally, natural gas
rich in liquids is supplied to NLNG from its off-shore Amenam

33

and Akpo platforms. 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.
At present, with six trains in full operation, the total gas
requirement of the company's Bonny Island natural gas
liquefaction plant is about 3500 MMscf/d (3.5 Bcf/d).
Gas is transmitted to the NLNG complex through six
independent Gas Transmission Systems (GTS). GTS-1, -2, -4
and Bonny Non Associated Gas (BNAG) piping systems are
on-shore, while GTS-3 and -5 are off-shore lines.

COMMERCIAL
Marketing & Sales Administration
Since October 1999 when the rst LNG cargo was loaded for
delivery to Montoir Terminal in France, NLNG has maintained
its reputation as a reliable and secure supplier of Liqueed
Natural Gas and Natural Gas Liquids (Condensates and LPG)
worldwide. With a six-train complex of 22 mtpa LNG
nameplate production capacity and 5 mtpa NGLs production
capacity, NLNG now has the capacity to load and safely
deliver over 300 cargoes of its products annually.

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, Gas
Natural, Botas, GDF Suez, GALP Gas Natural, 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 Europe, Turkey,
Mexico and the United States of America.
In recent times, NLNG cargoes have been delivered to the Far
East, Middle East, South America and the United Kingdom
through existing customers and via spot Master FOB

34

Facts & Figures on NLNG 2014

agreements with several companies. Volumes have gone as far


as 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 38 Spot Free on Board (FOB)
LNG Master Sales Agreements with various companies located
across major markets, enabling the sales of excess production
volumes to the spot LNG market.

Natural Gas Liquids


Known as Natural Gas Liquids, high quality Liqueed
Petroleum Gas (LPG) and Condensate (Natural Gasoline) are
by-products of the natural gas liquefaction process. NLNG
currently produces in excess of 1.5 and 1.0 million tons per
annum respectively of Condensate and LPGs per annum. 75%
of both LPG (Propane & Butane) and Condensate are sold on
Free on Board (FOB) basis to its shareholders on equity basis
using a matching mechanism on a price set by a competitive
tender, with prequalied companies taking up the remaining
25% of the product volume.

Domestic LPG Supply


NLNG commenced supply of LPG to the Nigerian domestic
market in 2007. That rst NLNG LPG cargo into the domestic
market was discharged at Apapa jetty on December 26.
At the moment, NLNG has signed Sales and Purchase
Agreements (SPAs) with 15 off-takers (all Nigerian companies)
in which the company is committed to deliver up to 250,000

Facts & Figures on NLNG 2014

tonnes of LPG into the Nigerian market annually, in line with


the commitment to grow the domestic LPG market in Nigeria.
LPG is delivered Ex Ship (DES) model with NLNG-chartered
LPG tankers. Under the DES model, the LPG tanker loads from
NLNG Terminal in Bonny and delivers directly to the buyer's
terminal at the various ports in Nigeria. From January 2013 to
August 2013, Gaz Providence, the LPG tanker, loaded
128,510.70 MT and discharged 128,389.81 MT of LPG to
the Nigerian domestic LPG market. In order to assure safe
operations at the local LPG terminals, NLNG conducted Due
Diligence Inspections of the respective discharge terminals and
also provided training to the operators of the terminals (NNPC,
TOTAL, PPMC, etc.).
The LPG Domestic Supply scheme, which has been an
outstanding success, has led to a signicant reduction in the
end-user price of LPG in the domestic market.

In The Future
NLNG will continue to consolidate its position as one of the
largest producers and exporters of LNG in the world,
maintaining its position as a major, strategic and reliable
supplier. Currently, NLNG delivers some 7% of global supply.
NLNG's 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 ve buyers.

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Facts & Figures on NLNG 2014

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37

SHIPPING
NLNG has a total of 23 ships on long-term charter for its sixtrain operation. All 23 ships are utilised on an integrated
scheduling basis and load at NLNG Terminal in Bonny,
Nigeria, for ex-ship deliveries to buyers in Europe, South
America, Gulf of Mexico (GOM) including ports in Mexico
and US, Middle East and Asia.
The ownership structure of the ships is as follows:
Bonny Gas Transport (BGT) 13 (four membrane and nine
Moss carriers)
BW Gas
8 (All membrane carriers)
Nippon Yusen Kaisha (NYK) 2 (All membrane carriers)

Operational and Technical Management of


the Fleet Vessels

Ten BGT vessels are managed and operated by NLNG


Shipmanagement Services Department (NLNGSS)
Three BGT vessels are managed and operated by Shell
International Trading & Shipping Company Ltd (STASCo)
Eight BW Gas vessels are managed and operated by BW
Gas
Two Nippon Yusen Kaisha (NYK) vessels are managed and
operated by NYK
In 2013, NLNG chartered two additional vessels on an ad
hoc, single voyage basis: the LNG Jupiter from Statoil and the

38

Sonangol Sambizanga from Angola LNG. Both vessels were


th
th
redelivered to their owners on 15 and 13 September 2013
respectively. NLNG also has one vessel, Stena Clear Sky,
under medium-term charter. The vessel was chartered for a
term of three years in 2012, and will be redelivered to her
owner in 2015.
In addition to our traditional deliveries to Europe and the US,
NLNG also supplies LNG to South America, with deliveries to
Mexico and Brazil; and to Asia and the Middle East, with
deliveries to Japan, South Korea, India, China, Taiwan,
Thailand and Kuwait.

Ship Management Knowledge Transfer


Project (SMKTP)
NLNG reached an agreement on Ship Management
Knowledge Transfer Project (SMKTP) with Shell International
Trading and Shipping Company Limited (STASCo) in 2008
with the contract formally signed on June 23, 2009. STASCo
manages one of the world's largest eets of Liqueed Natural
Gas (LNG) carriers and oil tankers. The company is known for
its high level expertise and decades of experience regarding
maritime safety and environment, vessel quality assurance, oil
spill preparedness, port and berth assessments, and
emergency management, and has partnered with NLNG since
inception.
Ship Management Knowledge Transfer Project involves the
training of NLNG staff (called Secondees) in the acquisition of

Facts & Figures on NLNG 2014

appetite for more tonnage.


NLNGSS staff will be involved in design, plan approval and
construction supervision of the vessels at the designated
shipyards with the appointed Shipping Adviser.
Three NLNGSS staff are directly involved in the design and
plan approval and subsequent building of the six new BGTPlus
vessels, and will later move to the shipyards for active
participation in construction supervision during the construction
phase of the project.
Plans are also made for the training of Nigerians in the
acquisition of DFDE experience which will include cross-posting
to companies currently managing this class of vessels, and
early deployment to shipyards.
For more information, see Shipping under Nigerian Content on page 57.

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Facts & Figures on NLNG 2014

ship management skills /competencies in 13 core shipping


activities known as Business Elements. The project is overseen
by a third party assurance provider with series of audits aimed
at ensuring alignment with the plan, quality and agreed
project schedule. The project achieved milestones which
included the birth of a ship management department in
NLNG, NLNG Ship Management Services (NLNGSS), and
consequent phased take-over of the management of BGT
vessels from STASCo.
Between July 2011 and July 2013, NLNGSS took over the
management of six BGT-owned vessels which were previously
being managed by STASCo. NLNG secondees who were
previously undergoing training under the SMKTP agreement
with STASCo have been moved back to NLNG.
NLNG also had a similar agreement with Anglo Eastern UK
Limited (AEUK), the LNG arm of Anglo Eastern Goup (AESML).
The Anglo-Eastern Group (AESML) has well over 15,000
crewmen and over 1,000 seasoned shore-based workers
round 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.
NLNG signed Secondee Training Agreement and
Memorandum of Understanding for a Scheme of Ship
Management Knowledge Transfer with AESML on 15th June
2009 and 13th January 2011 respectively. The secondees that

Facts & Figures on NLNG 2014

were being trained by AESML have since completed their


training and have been transferred to various roles and
responsibilities within NLNG shipping division.
Until July 2013, AEUK had been the operational/technical
managers of four BGT-owned vessels. However, following the
increased capacity and capability of NLNGSS in eet
management and consequent Board approval, the
technical/operational management of these vessels were
successfully transferred to NLNGSS. AEUK has ceased to
perform this role within the project. AEUK, however, continues
to partner with NLNG in the supply of manpower for the
manning of BGT-owned vessels.
NLNGSS continues to increase ship management capacity
through training and development of NLNG mariners.
Currently, there are four Assistant Superintendents undergoing
ship management training directly under NLNGSS tutelage
and one secondee in training at STASCo.

Ship-Management Knowledge Transfer


Project for Acquisition of Competency in
DFDE LNG Carriers (SMKTAPlus)
Following an Economic Replacement Assessment (ERA) study
on the older BGT vessels, Board approved a eet renewal and
optimization program. Consequently, BGT is currently building
six Dual Fuel Diesel Engine (DFDE) LNG carriers in South
Korea. Four of the vessels will replace six older vessels while
two are aimed at eet optimization to meet NLNG's increased

39

NLNG Operational Shipping Performance


2010 - 2013

Shipping Safety Record


Continuous improvement of the HSE and operational
performance of each ship in the eet is important to BGT and
NLNG, and is subject to continuous review.
Each ship in the eet is continuously monitored and
benchmarked against LNG industry standards. This is done
through:

Application and adherence to NLNG HSE Policy and


Procedures

Biannual Fleet Managers' HSSE workshop to discuss


and exchange best practice and HSSE improvement

Quarterly Marine Contractors HSSE Managers'


Workshop to build commitment towards improving
safety on board marine crafts that support the
operation of the vessels at Bonny

Shipboard Audit Programme and Safety Management


Systems

Continuous implementation and improvement of HSE


initiatives

Facts & Figures on NLNG 2014

Independent LNG Shipping Performance Benchmarking


Programme
Implementation of Behavioural Based Safety (BBS)
programmes to continually improve the safety culture
onboard
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
Ship Management Assurance Review (SMAR) Audit which
involves sailing with the vessel.
Quarterly HSSE newsletter to demonstrate commitment and
share learnings
Monitoring and implementation of applicable local and
international regulations
Worksite Hazard Management Programme

The application and enforcement of the above initiatives have


resulted in downward trend in Fleet TRCF as shown below.

TRCF Total number of recordable cases expressed as a


frequency in relation to eet-wide exposure hours.
LTIF Total number of Lost Time Injuries expressed as a

41

frequency in relation to eet-wide exposure hours.

Shipping: Major Milestones

Shipping and Marine Quality Assurance


NLNG, through the Shipping Assurance and Compliance
Department (SDA), ensures that each segment of the entire
NLNG shipping and marine business operations complies with
best industry practice and international standards.
In line with NLNG Vessel Quality Assurance Policy, all vessels and
terminals used for NLNG business are positively vetted using a
combination of inspections, assessments and due diligence
reviews prior to being used. These activities, including a number
of Oil Company International Marine Forum (OCIMF) accredited
Ship Inspection Report (SIRE) inspections, are conducted in line
with industry best practice.
To this end, NLNG has been admitted into 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 improvement in standards of design
and operation. NLNG is represented in the OCIMF key
committees including General Purposes Committee (GPC), Ports
& Terminals Committee (PTC), Gulf of Guinea Piracy Focal
Group (PGoG) and recently elected into the SIRE Focus Group
(SFG).

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Facts & Figures on NLNG 2014

NLNG Ship Management Limited (NSML)


NLNG Ship Management Limited (NSML) was set up in
response to rapid changes and challenges in the maritime
business and the scarcity of ship board personnel worldwide,
to deliver on NLNG's strategic plan to have a shipping
management service, supported by a dedicated manning
company to develop and supply qualied and competent
shipboard personnel on board its ships. A subsidiary of
NLNG, NSML is charged with the rapid development of
Nigerian shipboard personnel in line with international
standards and practices.
The establishment of NSML is also in furtherance of NLNG's
Nigerianisation policy which is in sync with the federal
government's local content drive.
NSML has continued to implement the Nigerianisation Plan
with regard to BGT vessels. Since its commencement, the
shipboard ofcers' Nigerianisation policy has produced six
captains and four chief engineers.
From 2001 to 2012, a total of 219 cadets have completed
their cadetship training program in UK maritime colleges. As
part of their training, all cadets go on board BGT vessels for
practical experience; this is aimed at instilling early in them the
discipline required for successful career at sea and at meeting
the competency certication requirements. Engineering Cadets
and Junior Engineering Ofcers are also being trained to
obtain qualications in motor ships as well as the existing

Facts & Figures on NLNG 2014

steam ships, to allow NSML to meet additional the challenges


and requirements of the new-build DFDE ships. By the end of
2013 NSML had trained 25 Engineering Ofcers who now
have dual certication.
In 2013, 17 cadets completed their three years cadetship and
are now serving on BGT vessels as ofcers.
NSML currently has 192 Nigerian ofcers in its employ and
now completely manages the deployment/training of all
ofcers and cadets. Because we do not have many Nigerians
in the senior ofcer rank yet, in 2013, with Board approval,
NSML started recruiting and employing foreign senior ofcers
to allow the Manning Agreement with AESM to run down. At
the end of 2013 NSML employed nine such ofcers. NSML
continues the direct employment and management of Ratings
as approved by the NSML Board of Directors, for BGT. The
company presently has 154 Ratings in its employ and this
number is expected to increase to 300 by end of 2014.
NLNG continues to support the Nigerian Maritime Academy,
Oron, to train manpower for the industry. Forty NSML Ratings
were sponsored to the Basic Mandatory STCW Training at
Maritime Academy of Nigeria, Oron in 2013.
For more information, see Shipping under Nigerian Content on page 57.

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CADETS RECRUITMENT/TRAINING TABLE

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