2014 nlng facts and figures part 1

8/10/2019 2014 Nlng Facts and Figures Part 1

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FACTS & FIGURES ON NLNG 2014


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F a c t s & F i g u r e s o n N L N G 2 0 1 4


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1


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2 F a c t s & F i g u r e s o n N L N G 2 0 1 4


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CONTENTS

The Company 5

Management Profile 11

The Plant 20

NLNG and its Contributionsto the Nigerian Economy 25

Gas Supply 32

Commercial 34

Shipping 38

Financing 51

Nigerian Content 56

The Environment 65

Community Relationsand Development 72

The Nigeria Prizesfor Science and Literature 92

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

3F a c t s & F i g u r e s o n N L N G 2 0 1 4


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THE COMPANY

Nigeria LNG Limited (NLNG) was incorporated as a limitedliability company on May 17, 1989 to harness Nigeria's vastnatural gas resources and produce Liquefied Natural Gas(LNG) and Natural Gas Liquids (NGLs) for export.

It is owned by four shareholders, namely, the FederalGovernment of Nigeria, represented by Nigerian NationalPetroleum Corporation (49%); Shell (25.6%); Total LNG

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 LimitedBonny Gas Transport Limited was established in 1989,following the incorporation of Nigeria LNG Limited, to provideshipping capacity for NLNG project.

The company was set up with an ordinary equity holding from

Nigeria LNG Limited and preferential equity holding from thesponsors, NLNG's shareholders.

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



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Our Vision

a global LNG company helping to build a better Nigeria.

Nigeria LNG Limited will be a global LNG company renowned

for its operational excellence, cost leadership, high HSEstandards, honesty and integrity.

We help to build a better Nigeria by processing, shipping andmarketing efficiently and profitably the country's gas resourcesand by putting out the flares, thus diversifying the economyand minimising the environmental impact of our activities andproducts.

We will set the standards in community relations andtechnology transfer, and actively promote the sustainabledevelopment of Nigerian businesses.

We will provide to our shareholders a good return on theirinvestment.

We will provide an exciting and fulfilling place to work andthe opportunity for staff to develop their potential.

Finally, we will execute and operate our business in Nigeriawith an international outlook and mindset.

Our MissionTo market, produce and deliver liquefied natural gas andnatural gas liquids to buyers safely, reliably and profitably,growing our company and its people to their full potential, andbeing a trusted partner with all our stakeholders in thesustainable development of Nigeria's gas industry and NLNGhost communities.



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Our PeopleNigeria LNG Limited's workforce comprises direct-hire staffand secondees from shareholder companies, working together

to achieve the company's corporate objectives, through a set ofshared values.

Direct staff are recruited after a rigorous interview following theadvertisement of vacancies on the company's website and innational newspapers. Employment and appointments are madeon merit, based on academic qualification, relevant workexperience and competence.

The shareholders appoint representatives to the Board ofNigeria LNG Limited. To execute the decisions of the Board isa Senior Management Team (SMT). Supporting the SMT arethe Extended Management Team (EMT) and over 1,000quality staff.

Shared ValuesIntegrityTeamwork

ExcellenceCaring

SHAREHOLDERS



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SHAREHOLDERS

Nigerian National Petroleum Corporation(NNPC)Nigerian National Petroleum Corporation was established in

1977 under the laws of the Federal Republic of Nigeria. It isthe corporate entity through which the Nigerian Governmentparticipates in the oil and gas industry. NNPC and itssubsidiaries dominate all sectors of the industry - exploration,production, refining, pipelines, marketing, crude/productexports, and petrochemicals. NNPC owns 49% of the sharesin Nigeria LNG Limited.

Shell Gas BV (SGBV)Shell Gas B.V (SGBV) is a company incorporated under thelaws of the Netherlands. For more than 40 years, Shell Gashas been investing in and delivering some of the world'slargest and most complex gas projects. Besides its interest inNigeria LNG Limited, Shell Gas holds the largest equity share

of LNG capacity among international oil companies, with aleading position in LNG shipping, marketing and trading ofnatural gas and power in Europe, North America and Asia

Pacific. It is a member of the Royal Dutch Shell Group ofCompanies which operate throughout the world in all sub-ssectors of the petroleum industry. SGBV owns 25.6% of theshares in Nigeria LNG Limited.

Total LNG Nigeria LimitedTotal is a major integrated oil and gas company active in

all sectors of the petroleum industry. It explores in morethan 130 countries. The company is Nigeria's fourth-largest oil and gas producer through its involvement inmore than 50 permits, including nine as operator. Totalowns 15% of the shares in Nigeria LNG Limited.

Eni International (N.A.) N.V.S.a.r.lEni is one of the world's major integrated oil and gascompanies engaged in all sectors of the petroleum business. Itis involved in exploration, development and production of oiland natural gas in 70 countries. Eni owns 10.4% of the sharesin Nigeria LNG Limited.



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NLNG Board of DirectorsOsobonye R. LongJohn ChairmanBabs Omotowa Managing Director/Chief

Executive OfficerBasheer Abubakar Koko Deputy Managing Director

Andrew YakubuDanladi KifasiCordelia C. AgbotiBagudu HirseRuud de JonghMarkus DrollRonnie Aker

Guy MauriceCarlo BottaroEdith Unuigbe General Counsel/

Company Secretary

BGT Board of DirectorsOsobonye R. LongJohn PresidentBabs Omotowa Vice PresidentBasheer Abubakar Koko

Andrew YakubuDanladi Kifasi

Aleruchi Cookey-GamUmaru DahiruRuud de JonghRichard EcclestonRonnie Aker

Antonino Fiore

Luc GilletDonald H. MalcolmDavid Astwood

Malcolm Mitchell Company Secretary

NSML Board of DirectorsDavid Ige ChairmanBasheer Abubakar Koko Vice Chairman

John MeredithMaikanti BaruRichard Eccleston

Temilola OkesanjoLaurent Routisseau

Antonino FioreEdith Unuigbe Company Secretary



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NLNG MANAGEMENT PROFILE

ManagingDirector/ChiefExecutive OfficerBabs Omotowa has over 20years experience in the oil andgas industry. Prior to coming toNigeria LNG Limited, he was, atvarious times, Vice President,HSE, Infrastructure and Logisticsfor Shell companies in Sub-Sahara Africa, a Director of

Shell Petroleum Development Company (SPDC), Nigeria andalso Director of West Africa Pipeline Company.

Babs Jolayemi Omotowa holds a degree in IndustrialChemistry and a Master of Business Administration(Operations Research) from the University of Ilorin. He alsoholds a Master of Business Administration (Supply Chain

Management) from University of Leicester, United Kingdom.

After a brief stint as a chemistry and mathematics teacher atBishop Smith College, Ilorin, he joined Shell PetroleumDevelopment Company (SPDC) in 1993 where he started hiscareer as a management trainee and rose rapidly to Head,Operations Support, Warri, before he went on internationalassignments with Shell in the United Kingdom, Holland, and

Norway, serving variously as Production Asset Manager,Shipping Manager and Business Improvement Manager. Hereturned to Nigeria in 2006 as General Manager Supply

Chain for SNEPCo and later SPDC, and he is a Fellow, UKChartered Institute of Supply, London

Over his distinguished career across Europe and Africa, Babshas been renowned for strategic transformation, re-engineering, successful turnaround, as well as maximizingvalue chains. His stated goal in NLNG is to sustain thehistorical excellent performance, move the company to the nextlevel and make NLNG an inspiration to Nigeria.

Deputy Managing DirectorBasheer Abubakar Koko holds a Post Graduate Diploma in

Petroleum Economics fromOxford in the United Kingdomand a Bachelor in Business

Administration from OhioUniversity, United States of

America. These are

complemented by numerousinternational courses anddevelopment attachments inHarvard University; The

Wharton School of theUniversity of Pennsylvania; IMD,

Lausanne, Switzerland and energy companies in the UnitedKingdom, 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 edgemanagement practices as well as a clear understanding of thedelicate workings of government policies. Beginning his careerin 1982 at Kaduna Refinery, he has held several key positionsincluding Manager, Marketing and Sales at ElemePetrochemicals, Port Harcourt (1997-1998); Manager,Marketing and Shipping, LNG Division (1999-2003); andExecutive Director (Services) of Kaduna Refining andPetrochemical Company Limited (November 2003-September

2007).

Earlier, he was Special Assistant to the Honourable Minister ofPetroleum Resources/ OPEC President (May-November 1988)and the Technical Assistant to the Honourable Minister of Statefor Petroleum Resources (February-August 1998). Between2001 and 2003, Basheer participated in MOU/SPAnegotiations 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 ShippingAdvisory 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 Venturefrom 2007 before he came to NLNG in 2009.

General Manager, ProductionChima Isilebo is the General Manager, Production at the plant

complex in Bonny, Rivers State.

Chima is a seasonedprofessional with more than 30years oil and gas industryexperience in both Upstreamand Midstream businesses,covering diverse disciplinesincluding Engineering andProject Management, HSSE, Risk

and Quality Management,Business Planning/Economics,

Venture Governance, LNG Commercial/Business Developmentas well as Operations/ Asset Management.

A 1980 graduate of the University of Nigeria, Nsukka with aFirst Class (Hons.) degree in Mechanical Engineering, Chimajoined Shell Nigeria in August 1981, and has had a series ofchallenging assignments in various locations both within

Nigeria and around the world including, Europe (UK and TheNetherlands), the Middle East (Oman) and South East Asia(Brunei and Singapore). Following early carrier assignments inEngineering/Project Management, HSSE, BusinessPlanning/Economics, he worked as Operations Adviser atShell UK Exploration & Production and OperationsSupport/HSEQ Manager at Brunei LNG, before beingappointed as the Start-Up Manager (in 2004), and the first



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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 Presidentfor South-East Asia region, with responsibility for New BusinessDevelopment in Indonesia, Philippines, Thailand, Vietnam, aswell as Governance of existing ventures in Brunei andMalaysia.

In that capacity, he served as a Director on the boards of anumber 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 first NigerianGeneral Manager, Production (PD).

General Manager,Commercial

Patrick Olinma holds a bachelorand a master of Law degreesfrom the Universities of Beninand Lagos respectively, as wellas a Master of Business

Administration (MBA) from theGrand Ecole ESCP, Paris,France.

He began his career as a legal counsel in Abudu, Akinyemi &Ogunde in 1990 and was managing counsel when he left thelaw firm to join French oil giant Total Nigeria in 1996 where,

amongst other roles, he had oversight function of technicalservices contract and advised operations teams on hostcommunities, conflict resolution, as well as relations with stateand local government agencies.He was also lead counsel in the negotiation of variousproduction sharing contracts and joint venture oil and gasagreements, notable among them, the USD1.2 billionunitisation & unit operating agreement for the Amenam/Kpono

fields off-shore, Nigeria, and the USD1.06 billion gas sellers'direct agreement with lenders to Nigeria LNG Limited Trains4 & 5 Project. He was also Secretary, Total Nigeria PensionFund with responsibility for legal aspects of pension fundmanagement and regulatory reporting and compliancematters.

Patrick, who has a strong track record in closing complexdeals, in 2005 led the 2.5 million tonnes/year LNG Sales &

Purchase Agreement negotiations with Suez LNG for theYemen LNG Project and was responsible for the 3.25 milliontonnes per year LNG Sales & Purchase Agreements with BGGas Marketing Limited and Occidental Energy Marketing Inc.for NLNG's Train 7 Plus project. Before he came to NigeriaLNG Limited as General Manager, Commercial in 2007,Patrick was Deputy General Manager (NLNG Commercial) atTotal Exploration & Production Nigeria.



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General Manager,FinanceSolomon Segun Folaranmi is a

chartered accountant with anaccounting degree fromUniversity of Lagos, and aMaster of Business

Administration (MBA) fromUniversity of Benin.His career spans more than 30years in corporate finance,

project accounting, investment portfolio management, joint

venture financing, capital assets oversight and investorrelations. These are complement by numerous internationalcourses from Cambridge to Oxford.

He began his career at the University of Lagos as a GraduateAssistant before joining NNPC in 1983 as a treasuryaccountant. In 1986, he moved to Nigerian Gas CompanyLimited where he spent 18 years as accountant in various gasprojects including Imo-River/Aba Gas Supply Project,

Alakiri/Onne Gas Supply Project, Escravos/Lagos Gaspipeline project, Obigbo/Afam Gas Supply Project. He rosethrough the ranks to become Finance Manager, CFO, in2004.

In 2005, he left Nigerian Gas Company Limited for NNPCLondon office where he served at different times as FinanceManager and Acting General Manager, NNPC London

Office, before proceeding to NNPC Pension Fund Limited in2012 as the General Manager, Finance, where he managedan investment and assets portfolio worth N270 billion.

In 2013, Solomon was appointed General Manager, Finance,of Nigeria LNG Limited.

General Manager,External RelationsKudo Eresia-Eke, a seasonedand accomplishedcommunicator and administrator

with rich experience in themedia, academia, governmentand the oil and gas industry,holds a PhD in Political Theoryfrom the University of PortHarcourt, and a bachelor's

degree in Mass Communication from the University of Lagos.He started his communication career straight from secondaryschool, joining the Nigerian Television Authority as a presenter

and newscaster. He later served at the Daily Times, theGuardian Newspaper, Rivers State Television, Radio Nigeria,Radio Rivers, SunrayGroup of Newspapers, from where heresigned in defence of professional principles and ethics. Foryears, he was also a columnist for the Vanguard Newspaper.

Kudo has a wealth of experience in Public Service, too. Heserved variously as Rivers State Commissioner for Information



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and Culture and State Director of the National OrientationAgency.

He has also enjoyed teaching stints in various universities inNigeria and South Africa and w founding staff of theas theCentre for Advanced Social Science, Port Harcourt.Since joining the oil and gas industry 14 years ago as pioneerCommunity Relations and Development Manager for NigeriaLNG Limited, Kudo has served in other managerial positionsincluding Public Affairs Manager, and Government RelationsManager. He is a prolific writer with numerous publicationsspanning poetry, short stories, inspirational and academic

essays. He belongs to several professional organizationsincluding the International Association of BusinessCommunicators.

General Manager,Human ResourcesPeter Ogheneovo Odjojiobtained a bachelor's degree inPhilosophy and a master's

degree in Industrial and LabourRelations from the University ofIbadan in 1980 and 1982respectively. He is a member ofNigeria Industrial Relations

Association and Institute ofChartered Mediators and

Conciliations and an Associate Member of the Chartered

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 Refinery and PetrochemicalCompany (WRPC), a subsidiary of Nigerian NationalPetroleum Corporation, NNPC, in 1983 where he wasemployed as an Industrial Relations Officer and rose tobecome Head, Industrial Relations; Head, Recruitment, Recordsand Appraisals; Head, Management Training; and Head,Litigation & Discipline. He was the Secretary to WRPC TopManagement Committee and Services Executive ManagementCommittee for over eight years. In 1999, he was moved to the

Centre for Petroleum Studies, Kaduna where he handled Non-Technical Programmes.He was transferred to NNPC Headquarters in 2001 where herose to the position of Manager, Employee Relations in 2006.

Peter has participated in over 20 Executive Committeesinvolving HR practices, Strategic Planning, Recruitment,Management Promotions, Value and Vision, Discipline and

Total Quality Management. His career has recorded sterlingachievements, notably, the establishment of an IndustrialRelations System in NNPC adjudged to be the best in theindustry and the resolution of Industrial Relations conflictsinvolving some of the IOCs with the national unions. He wasChairman and Coordinator of the Nigerian Oil & Gas IndustryGames (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 in2005 and Best Employee Relations Manager in the Oil andGas Industry in 2006.

Before his appointment as General Manager, HumanResources, Nigeria LNG Limited in January 2014, he wasGeneral Manager, Human Resources in the CorporateHeadquarters of Nigerian National Petroleum Corporation(NNPC). Married with children, Peter has attended numeroussenior management courses locally and internationally.

General Manager,

NLNG ShippingTemilola Fatai Okesanjo startedhis career in the maritimeindustry in 1981 as a DeckCadet in the now defunctNigerian National ShippingLines (NNSL). He latergraduated from AustralianMaritime College as a Master

Mariner in 1990.

Soon after graduation, he worked briefly as a Master Marineron Oil Tankers & Terminals before proceeding to WorldMaritime University in Malmo, Sweden, to pursue a Master ofScience degree in Shipping Management which he obtainedin 1994.

Temilola also sat for the (London) Institute of CharteredShipbrokers (ICS) examination, qualifying as a CharteredShipbroker (MICS) in 1995. He has, at various times, worked

as a Marine Superintendent/SBM Pilot for Texaco OverseasPetroleum Company, Shell Petroleum Development Company(SPDC), Mobil Producing Unlimited, and PetroleumDevelopment Company of Oman before joining NLNG in1999 as Head of Shipping Operations.

Temilola became the first Nigerian employee to rise to theposition of General Manager, Shipping, in 2005. He hasinspired landmark achievements in the Shipping Division,

remarkably the setting up of the subsidiary, NLNG ShipManagement Limited (NSML), a ship management andmanning subsidiary company of Nigeria LNG Limited. Hecurrently leads the BGT Plus Project - a project that will deliversix newbuild LNG Carriers into BGT Fleet in replacement of thesix old BGT LNG Carriers.

GeneralCounsel/Company

SecretaryEdith Unuigbe holds abachelor's degree in Law fromObafemi Awolowo University,Ile-Ife and a Master of Lawsdegree from Harvard LawSchool, Harvard University inCambridge. Massachusetts,



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USA. Edith qualified in the Mini MBA in Oil and Gas inHouston USA in 2008; obtained the International ExecutiveProgramme Certificate from Insead Business School,

Fontainebleau, France in 2009; attended and obtained aCertificate in the Women's Leadership Forum (InnovativeStrategies) from Harvard University, Cambridge, Massachusettsin 2011; and the Advanced Management ProgrammeCertificate from Wharton Business School, Pennsylvania, USAin 2012.

She is the General Manager/General Counsel/CompanySecretary of Nigeria LNG Limited and Company Secretary of

NLNG Ship Management Limited.

Edith began her career in 1982 with the Office of the VicePresident of Nigeria in the defunct second republic during hercompulsory 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 MerchantBank Limited as legal officer and sub-manager. She moved upto become the company's Legal Adviser/Company Secretaryin 1988 before leaving for Commercial Trust Bank Limited in1990. At Commercial Trust Bank Limited, she was an AGMand Group Head of the Investment Group, Financial Servicesand Export Unit.

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 Secretaryand 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. In2006, she became the General Counsel/Company Secretaryof Nigeria LNG Limited where she manages NLNG's legal

services and provides secretariat services to the Boards ofDirectors of NLNG, BGT and NSML.



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THE PLANT

In November 1995, a Final Investment Decision (FID) was

signed by the shareholders to build a Liquefied Natural Gas(LNG) plant in Finima, Bonny Island in Rivers State. This wasfollowed in December 1995 by the award of a turnkeyEngineering, Procurement and Construction (EPC) contract to aconsortium of engineering firms comprising Technip,Snamprogetti, M.W. Kellog and Japan Gas Corporation (TSKJ)for the Plant (consisting of two trains - Trains 1 and 2, calledthe Base Project), the Gas Transmission System (GTS) and theResidential Area (RA).

Construction at the plant site commenced in February 1996and on August 12, 1999, Train 2 was ready for start-up.Production of LNG commenced on September 15. Train 1subsequently 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 3and 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 March2002. Train 4 came on stream in November 2005 and Train 5was started up in February 2006.NLNGSix project, consisting of Train 6 and additional

condensate processing, LPG storage and Jetty facilitiescommenced with an FID in 2004. Train 6 became operationalin December 2007.

With six trains currently operational, the entire complex iscapable of producing 22 Million Tonnes Per Annum (mtpa) ofLNG, and 5 mtpa of NGLs (Liquefied Petroleum Gas (LPG) andCondensate) 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 productioncapacity to 30 mtpa of LNG are currently progressing withsome preliminary early site preparation work initiated. Furtherwork awaits an FID by the shareholders.

The plant has rapidly and successfully made the transition froma construction project to a stable production operation withrelentless focus on operational excellence, de-bottleneckingand regular Turn-Around Maintenance (TAM) of the assetswhilst imbibing proven techniques and processes to maximiseproduction, and manage human interferences and impacts. Allthese activities are underpinned by a Health, Safety, Security &Environment (HSSE) culture that continually seeks improvementsin the safe and sustainable utilisation of our assets. Additionalprojects are in development to extend and rejuvenate theassets beyond their original design life.

The plant performance is regularly benchmarked internationallywith 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.

The Plant is built on 2.27 sq.km of largely reclaimed land inFinima, Bonny Island. The main elements of the facilitiesalready in operation are:

Six LNG processing units (trains) with a total nameplateprocessing capacity of 22 MTPA.

Diversified Gas Supply (Associated Gas & Non-AssociatedGas) and six main dedicated gas transmission pipelineswith four of them located on-shore

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

A common fractionation plant to process LPG

A common condensate stabilisation plant

Three Condensate storage tanks, each with a capacity of36,000 cubic metres

Four LPG refrigerated storage tanks, each with a capacityof 65,000 cubic metres (two each for propane and butane)

10 gas turbine electricity generators with a combinedcapacity of more than 320 MW

Two LNG export jetties; one of which also exports LPG,and the other also exports Condensate, with a combinedcapacity 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 two2 sq.km



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NLNG: Major Milestones

May 17, 1989

Incorporation of Nigeria LNG LimitedNovember, 1995Final Investment Decision (FID) by shareholders for Trains 1and 2February, 1996Commencement of plant constructionSeptember, 1998Completion of Gas Transmission SystemFebruary, 1999

Final Investment Decision (FID) by shareholders for Train 3August 12, 1999Plant Ready For Start-Up with Train 2September 15, 1999Commencement of production from Train 2October 9, 1999Export of first LNG CargoFebruary 27, 2000Start-Up of Train 1

March 31, 2000Completion of Initial Supply Period (Gas Supply Agreement GSA)

April 4, 2000Export of first Condensate CargoMay 25, 2000Export of first LNG Spot Cargo

August 5, 2000Export of 50th LNG CargoSeptember 21, 2000

Plant Commissioning CeremonyFebruary 4, 2001Export of 100th LNG CargoSeptember 30, 2001End of Build-Up Period (GSA)October 1, 2001Commencement of Contract Year (GSA)March 20, 2002Final Investment Decision (FID) by shareholders for Trains 4

and 5March 22, 2002EPC Contract Award to TSKJ for Trains 4 and 5November 7, 2002Train 3 ready for Start-UpNovember 28, 2002Commencement of LNG production from Train 3December 17, 2002First LNG shipment from Train 3,

January 21, 2003Signing of the USD1.6 billion loan for NLNGPlusFebruary, 2003Start-Up of LPG Facility

June 25, 2003First Shipment of LPG



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July, 2004Final Investment Decision (FID) by shareholders for Train 6(NLNGSix)

November, 2005-Start-Up of Train 4February, 2006-Start-Up of Train 5December, 2006-1000th LNG Cargo

June, 2007-Feedgas reception facilities for the 6-Train complex becamefully operational

October, 2007-First Butane cargo destined for domestic market loadedDecember, 2007-Hand over of Train 6 to NLNG's Production Division. Recordrundown of LNG to storage tanks within nine days of hand-overMay, 2008-Nigerianisation of the Managing Director positionOctober, 2009

-10 years of LNG, NGLs productionOctober, 2010-Export of 2000th LNG cargoDecember, 2012-Highest number of cargoes produced in a year (333)

January, 2014th-Shipment of 3000 LNG cargo



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NLNG AND ITSCONTRIBUTIONS TO THE

NIGERIAN ECONOMY

With the incorporation of Nigeria LNG Limited (NLNG) on17th May 1989, the LNG industry in Nigeria was born. It issuccessfully harnessing associated gas volumes which wouldotherwise have been flared. It is now also considered one ofthe most important economic projects in Nigeria. NLNG hasalready generated significant revenues for the nation.

Environmental Hazard ReductionNLNG has converted about 119 Bcm (billion standard cubicmetres) or 4.2 Tcf (trillion cubic feet) of Associated Gas (AG) toexports as LNG and Natural Gas Liquids (NGLs), thus helpingto reduce gas flaring by Upstream Companies from over 60%to less than 25%. Flares are only permitted in order toeliminate waste gas which cannot be converted to any furtheruse. Flares also act as safety systems for non-waste gas and

are released via pressure relief valves, when required, to easethe strain on equipment.

Monetisation of GasNLNG mops up gas that would otherwise be flared, thusmaking significant contributions to the nation's income,delivering in the last thirteen years over USD13 billion individends. The company has paid over USD18 billion on gas

purchases from oil producing companies, of which the FederalGovernment of Nigeria owns 55%-60%.

Nigerias overall earnings from NLNG is now over 70%,comprising of the 49% dividend, 30% CIT, and other taxes

Foreign Direct Investment (FDI)With its plant construction, the company has generatedconsiderable Foreign Direct Investment (FDI) for the country.The project today has assets worth over USD13 billion. And49% of this belongs to the country through the NigerianNational Petroleum Corporation (NNPC).

Gross Domestic Product (GDP)Since it began operations, the company has contributed about4% of Nigeria's Gross Domestic Product (GDP). As a goodcorporate citizen, the company also contributes immensely tonational wealth and to the wellbeing of states in which itoperates, by paying all applicable taxes and tariffs. Beginningfrom 2014, corporate income tax will exceed N220 billion perannum, by far the highest in Nigeria and Sub-Sahara Africa.

Job CreationNigeria LNG Limited provided more than 2,000 jobs eachconstruction year. Overall, the major sub-contractors employedabout 18,000 Nigerians in technical jobs in the Base Project(Trains 1 and 2). About 500 expatriates played mainlysupervisory roles during the Base Project and wereunderstudied by the Nigerians whom they worked with. These



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Nigerians, with enhanced skills, have long joined the country'sworkforce, providing a support base for technology transferand industrialisation.

Local Content DevelopmentAn average of 46 local companies and 398 local supplierswere involved throughout construction of the existing six trains.

A total of 11,284 Nigerians were trained and the percentageof local content on community projects was 100% with a totalvalue of USD14.1 million during NLNG Plus (Trains 4 and 5)and NLNGSix (Train Six) projects, where the communityproject components were handled by NLNG.

In its present production phase, many Nigerian companieshave benefited from NLNG's Nigerian Content Policy which,among other things, encourages full participation ofindigenous firms in the company's contracting andprocurement processes. One such beneficiary is EnchepLimited whose facilities were revamped with NLNG's help tosupply thousands of different sizes and ranges of gaskets toTrains 4, 5 and 6. Dorman Long Nigeria Limited, also withNLNG's help, has supplied steel structures and low-pressurecarbon steel vessels for Train 3. Yet other beneficiaries include

AluminiumNow, Niger Delta Petroleum Resources, NexansKabelmetal, Holborn Nigeria Limited, and Waste Pipes andDrainages, to mention only a few.

Community DevelopmentIn our host communities, especially Bonny, housing, catering

and transportation enjoyed a boom as a result of huge capitalinflow into the economy during NLNG's construction phase. Anumber of industries were also attracted to the Island, notableamong which were banking and joint venture companies in thearea of equipment and spare parts manufacturing. This is inaddition to the over N25 billion NLNG has expended oncommunity projects over the years.



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Domestic LPG supplyNLNG commenced the supply of Liquefied Petroleum Gas(LPG) otherwise known as cooking gas to the domestic market

in 2007 when refineries became challenged. This is in linewith the company's commitment to contribute significantly tothe stimulation and development of the domestic LPG market inNigeria. Our intervention brought down the price of cookinggas from N7,000 to N3,500 per 12.5kg cylinder. NLNG hassigned sales and purchase Agreements (SPA) with off-takers (allNigeria companies) in which the company is now committedto deliver 250,000 tonnes of LPG into the Nigerian marketannually.

NigerianisationNLNG and its shareholders agreed on a Nigerianisationscheme on September 1, 1997. This was revisited and updatedin 2004. The objective of the scheme which was to Nigeranisethe company's workforce was achieved in 2012. It started byrecruiting Higher National Diploma graduates and trainingthem as technicians and operators. This is a deliberate policyto enable the relatively young minds imbibe the skills, work

culture, discipline and professionalism that the businessrequires. NLNG also instituted a staff training anddevelopment drive for different cadres of technical staff to helpthem acquire the requisite skills and competence formanagement, supervisory and operational positions in thecompany. The company continues to recruit young engineersand other technical staff, as part of this initiative.

Following the successful close-out of the Nigerianisationscheme, NLNG is currently engaged in staff domestication(NLNGnisation) a gradual and phased development ofNLNG direct staff to occupy positions currently occupied byshareholder staff (Non-Zoned Positions in NLNG).

Increased Shipping/Marine HumanResources

With the incorporation of its first subsidiary, Bonny GasTransport (BGT), in 1989, the LNG shipping industry inNigeria was born. Currently, NLNG, through NLNG ShipManagement Limited (NSML), another of its subsidiaries, is the

biggest employer of Nigerian seafarers on board its 13 NLNGdirectly-owned carrier ships.

In order to ensure that Nigeria continues to expand itscapacity to produce capable seafarers, Nigeria LNG continuesto support the Maritime Academy oF Nigeria (MAN), Oron in

Akwa-Ibom State through provision of equipment and trainingof personnel. MAN provides education, training andupgrading of officer cadets to enable them to perform duties at

sea as Deck and Engineering officers. NLNG has trainedhundreds of sea-going officers, some to the level of Captainsand Chief Engineers.

Corporate Social ResponsibilityNigeria LNG Limited currently provides uninterrupted power toover 200,000 inhabitants and businesses on Bonny Islandthrough a rural electrification project managed by the Bonny



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Utility Company (BUC). BUC is an initiative of NLNG-led JointIndustry Companies (JIC) which also includes water supply tothe Island.

With its N500 million micro-finance scheme, NLNG hasbrought alive the concept of good neighbourliness in its host(Bonny) and 110 contiguous pipeline communities. Thesepipeline communities have also enjoyed amenities from NLNGsuch as roads, hospitals, schools, and supply of learning aids,among others.

Nigeria LNG Limited also promotes the sciences and artsthrough its sponsorship of The Nigeria Prize for Science andThe Nigeria Prize for Literature, one of the most prestigiousawards for excellence in science and literature in Africa, eachworth USD100,000 in prize money.

Indeed, education is a special focus area for NLNG. Thecompany has earmarked N2 billion (USD12 million) forthe development of engineering education in six Nigerianuniversities to support the countrys educational sector. NLNGwill spend N340 million (USD2 million) each on the

construction of modern engineering laboratories and supplyingthem with cutting-edge equipment. The universities areUniversity of Ibadan, University of Ilorin, University of PortHarcourt, University of Maiduguri, Ahmadu Bello University,and University of Nigeria Nsukka.

The company promotes acquisition of vocational skills through

funding of the Bonny Vocational Centre (BVC). BVC is the onlyaccredited City & Guilds Centre in Nigeria. It empowersyouths with appropriate vocational skills that will make themgainfully employed and capable of contributing meaningfullyto the development of themselves and the society.

Vendor Finance SchemeNLNG recognises the fact that funding is the bane of theNigerian manufacturing industry. This led to the introduction ofUSD 1 billion NLNG Local Vendors Financing Scheme (NLVFS)which facilitates access to funds from participating banks byNLNG-registered vendors (suppliers of goods or contractors of

services). This way, vendors get speedy access to finance fortheir contracts, or procurement orders, at competitive rates.



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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 gasreserves in the world. The natural gas reserves are estimated tobe sufficient to sustain current production rates for over 60years.

Geologists believe that there is a lot more gas to be found

(potentially up to 600 Tcf), if companies deliberately explorefor gas, as opposed to finding it while in search of oil.

The government aims to eliminate all flaring of gas associatedwith the production of oil, and NLNG continues to play asignificant part in this. In the period 19992013, NLNG hasconverted 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 flared.

With further improvement in the collection of associated gas,NLNG with its 6-Train LNG/NGL complex will reduceupstream flaring in Nigeria even further.

Other demands on the use of Nigeria's gas are domesticpower generation, domestic utilities and industries, as well as

export NGL and gas projects such as the West African GasPipeline Company (WAGPco) and, potentially, other futureLNG projects.

The NLNG six-train complex is the biggest gas consumer andexporter in Nigeria with its current daily consumption of almost3.5 bcfd, equivalent to the total daily consumption ofindustrialised countries like the Netherlands.

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Gas Supply AgreementsNigeria LNG Limited has long term Gas Supply Agreements(GSAs) with three Joint Ventures (JVs) for the supply of naturalgas (feedgas) to the plant. These JVs are Shell PetroleumDevelopment Company of Nigeria Limited (SPDC), TotalExploration Production Nigeria (TEPNG) and Nigerian AgipOil Company Limited (NAOC).

Details of the agreements are as follows: (% vol. of gas supplyby each JV):

Legend:* - OperatorNNPC - Nigerian National Petroleum CorporationSPDC - Shell Petroleum Development Company of

Nigeria Limited (Shell Affiliate)NAOC - Nigerian Agip Oil Company Limited (Eni affiliate)EPNL - Total Exploration Production Nigeria (Total Affiliate)

FeedgasFeedgas is produced by the JVs from various concession areasin the Niger Delta, from onshore and offshore fields andsupplied to NLNG under a long term Gas Supply Agreementwith each JV. The agreements ensure efficient gas supply tothe plant throughout the life of the projects.

SPDC-JV is currently supplying feedgas from a number of fieldsincluding Gbaran Ubie (with a capacity of 1.2 Bcf/d, whichstarted-up in June 2010), Soku, Bonny (on-shore), Bonga, andEA (off-shore) supply facilities, each receiving gas from a widerange of oil and gas fields.

Additionally, under a special supply arrangement with theSPDC-JV, an indigenous marginal field concessionaire

/operator - Niger Delta Petroleum Resources (NDPR)commenced natural gas supply to NLNG in November 2012from its Ogbelle-Obumeze oil and gas process facilities. At35mmcf/d, it currently supplies 1 % of NLNG daily feedstockwith potential to grow to 100mmscf/d.

The NAOC-JV supplies gas to NLNG from its Obiafu-Obrikom(OB-OB) Integrated Gas Supply centre which receives gasfrom a wide range of fields including Idu, Akri, Kwale, Irri,Oshie, Tebidaba and Ebocha oil and gas fields.

The TEPNG-JV derives gas supplied to the plant from the on-shore Obite, Ibewa and Obagi fields. Additionally, natural gasrich in liquids is supplied to NLNG from its off-shore Amenam



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and Akpo platforms. Currently, TEPNG is running a project toincrease its supply capacity from the Obite Gas Plant. Aseparate 42-inch diameter gas transmission pipeline is also inproject execution phase, to bring the additional gas from Obite

Plant to NLNG.

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

COMMERCIAL

Marketing & Sales Administration

Since October 1999 when the first LNG cargo was loaded fordelivery to Montoir Terminal in France, NLNG has maintainedits reputation as a reliable and secure supplier of LiquefiedNatural Gas and Natural Gas Liquids (Condensates and LPG)worldwide. With a six-train complex of 22 mtpa LNGnameplate production capacity and 5 mtpa NGLs productioncapacity, NLNG now has the capacity to load and safelydeliver over 300 cargoes of its products annually.

LNG ContractsNLNG currently manages sixteen (16) long term LNG SalesPurchase Agreements (SPAs) executed with 11 buyers on aDelivered Ex-Ship (DES) basis. These buyers include Enel, GasNatural, Botas, GDF Suez, GALP Gas Natural, BG LNG,Endesa, ENI, Iberdrola, Shell Western LNG BV and Total Gasand Power Ltd.

The Long Term LNG buyers take delivery of their volumes in

receiving facilities spread across the Atlantic Basin in countriessuch 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 FarEast, Middle East, South America and the United Kingdomthrough existing customers and via spot Master FOB



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agreements with several companies. Volumes have gone as faras Japan, South Korea, Taiwan, China, India, Kuwait, Braziland Wales. This has positioned the company as a globalplayer in the gas industry.

NLNG has also executed over 38 Spot Free on Board (FOB)LNG Master Sales Agreements with various companies locatedacross major markets, enabling the sales of excess productionvolumes to the spot LNG market.

Natural Gas LiquidsKnown as Natural Gas Liquids, high quality LiquefiedPetroleum Gas (LPG) and Condensate (Natural Gasoline) areby-products of the natural gas liquefaction process. NLNGcurrently produces in excess of 1.5 and 1.0 million tons perannum respectively of Condensate and LPGs per annum. 75%of both LPG (Propane & Butane) and Condensate are sold onFree on Board (FOB) basis to its shareholders on equity basisusing a matching mechanism on a price set by a competitivetender, with prequalified companies taking up the remaining25% of the product volume.

Domestic LPG SupplyNLNG commenced supply of LPG to the Nigerian domesticmarket in 2007. That first NLNG LPG cargo into the domesticmarket was discharged at Apapa jetty on December 26.

At the moment, NLNG has signed Sales and PurchaseAgreements (SPAs) with 15 off-takers (all Nigerian companies)in which the company is committed to deliver up to 250,000

tonnes of LPG into the Nigerian market annually, in line withthe 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 fromNLNG Terminal in Bonny and delivers directly to the buyer'sterminal at the various ports in Nigeria. From January 2013 to

August 2013, Gaz Providence, the LPG tanker, loaded128,510.70 MT and discharged 128,389.81 MT of LPG tothe Nigerian domestic LPG market. In order to assure safeoperations at the local LPG terminals, NLNG conducted DueDiligence Inspections of the respective discharge terminals andalso provided training to the operators of the terminals (NNPC,

TOTAL, PPMC, etc.).

The LPG Domestic Supply scheme, which has been anoutstanding success, has led to a significant reduction in theend-user price of LPG in the domestic market.

In The FutureNLNG will continue to consolidate its position as one of thelargest producers and exporters of LNG in the world,maintaining its position as a major, strategic and reliablesupplier. Currently, NLNG delivers some 7% of global supply.

NLNG's 8.4mtpa Train 7 project, which will raise theliquefaction capacity to 30.4mtpa, is now awaiting FinalInvestment Decision (FID). SPAs have already been executedwith five buyers.



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SHIPPING

NLNG has a total of 23 ships on long-term charter for its six-

train operation. All 23 ships are utilised on an integratedscheduling 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 Mexicoand 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 ofthe Fleet Vessels

Ten BGT vessels are managed and operated by NLNGShipmanagement 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 NYKIn 2013, NLNG chartered two additional vessels on an adhoc, single voyage basis: the LNG Jupiter from Statoil and the

Sonangol Sambizanga from Angola LNG. Both vessels wereth thredelivered 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 herowner in 2015.

In addition to our traditional deliveries to Europe and the US,NLNG also supplies LNG to South America, with deliveries toMexico and Brazil; and to Asia and the Middle East, withdeliveries to Japan, South Korea, India, China, Taiwan,Thailand and Kuwait.

Ship Management Knowledge TransferProject (SMKTP)NLNG reached an agreement on Ship ManagementKnowledge Transfer Project (SMKTP) with Shell InternationalTrading and Shipping Company Limited (STASCo) in 2008with the contract formally signed on June 23, 2009. STASComanages one of the world's largest fleets of Liquefied NaturalGas (LNG) carriers and oil tankers. The company is known forits high level expertise and decades of experience regardingmaritime safety and environment, vessel quality assurance, oilspill preparedness, port and berth assessments, andemergency management, and has partnered with NLNG sinceinception.

Ship Management Knowledge Transfer Project involves thetraining of NLNG staff (called Secondees) in the acquisition of



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appetite for more tonnage.

NLNGSS staff will be involved in design, plan approval andconstruction supervision of the vessels at the designated

shipyards with the appointed Shipping Adviser.

Three NLNGSS staff are directly involved in the design andplan approval and subsequent building of the six new BGTPlusvessels, and will later move to the shipyards for activeparticipation in construction supervision during the constructionphase of the project.

Plans are also made for the training of Nigerians in the

acquisition of DFDE experience which will include cross-postingto companies currently managing this class of vessels, andearly deployment to shipyards.

For more information, see Shipping under Nigerian Content on page 57.



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ship management skills /competencies in 13 core shippingactivities known as Business Elements. The project is overseenby a third party assurance provider with series of audits aimedat ensuring alignment with the plan, quality and agreed

project schedule. The project achieved milestones whichincluded the birth of a ship management department inNLNG, NLNG Ship Management Services (NLNGSS), andconsequent phased take-over of the management of BGTvessels from STASCo.

Between July 2011 and July 2013, NLNGSS took over themanagement of six BGT-owned vessels which were previouslybeing managed by STASCo. NLNG secondees who were

previously undergoing training under the SMKTP agreementwith STASCo have been moved back to NLNG.

NLNG also had a similar agreement with Anglo Eastern UKLimited (AEUK), the LNG arm of Anglo Eastern Goup (AESML).The Anglo-Eastern Group (AESML) has well over 15,000crewmen and over 1,000 seasoned shore-based workersround the world. It offers the complete spectrum of ship andcrew management and technical services, which include

technical support, superintendence, procurement, accounting,insurance and agency services.

NLNG signed Secondee Training Agreement andMemorandum of Understanding for a Scheme of ShipManagement Knowledge Transfer with AESML on 15th June2009 and 13th January 2011 respectively. The secondees that

were being trained by AESML have since completed theirtraining and have been transferred to various roles andresponsibilities within NLNG shipping division.

Until July 2013, AEUK had been the operational/technicalmanagers of four BGT-owned vessels. However, following theincreased capacity and capability of NLNGSS in fleetmanagement and consequent Board approval, thetechnical/operational management of these vessels weresuccessfully transferred to NLNGSS. AEUK has ceased toperform this role within the project. AEUK, however, continuesto partner with NLNG in the supply of manpower for themanning of BGT-owned vessels.

NLNGSS continues to increase ship management capacitythrough training and development of NLNG mariners.Currently, there are four Assistant Superintendents undergoingship management training directly under NLNGSS tutelageand one secondee in training at STASCo.

Ship-Management Knowledge TransferProject for Acquisition of Competency inDFDE LNG Carriers (SMKTAPlus)Following an Economic Replacement Assessment (ERA) studyon the older BGT vessels, Board approved a fleet renewal andoptimization program. Consequently, BGT is currently buildingsix Dual Fuel Diesel Engine (DFDE) LNG carriers in SouthKorea. Four of the vessels will replace six older vessels whiletwo are aimed at fleet optimization to meet NLNG's increased



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NLNG Operational Shipping Performance2010 - 2013

Shipping Safety RecordContinuous improvement of the HSE and operationalperformance of each ship in the fleet is important to BGT andNLNG, and is subject to continuous review.Each ship in the fleet is continuously monitored andbenchmarked against LNG industry standards. This is donethrough: 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 improvingsafety on board marine crafts that support theoperation of the vessels at Bonny

Shipboard Audit Programme and Safety ManagementSystems

Continuous implementation and improvement of HSEinitiatives

Independent LNG Shipping Performance BenchmarkingProgramme

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 improvedperformance

Ship Management Assurance Review (SMAR) Audit whichinvolves 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 haveresulted in downward trend in Fleet TRCF as shown below.

TRCF Total number of recordable cases expressed as afrequency in relation to fleet-wide exposure hours.LTIF Total number of Lost Time Injuries expressed as a



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frequency in relation to fleet-wide exposure hours.

Shipping and Marine Quality AssuranceNLNG, through the Shipping Assurance and ComplianceDepartment (SDA), ensures that each segment of the entireNLNG shipping and marine business operations complies withbest industry practice and international standards.

In line with NLNG Vessel Quality Assurance Policy, all vessels andterminals used for NLNG business are positively vetted using acombination of inspections, assessments and due diligencereviews prior to being used. These activities, including a numberof Oil Company International Marine Forum (OCIMF) accreditedShip Inspection Report (SIRE) inspections, are conducted in linewith industry best practice.

To this end, NLNG has been admitted into the Oil CompaniesInternational Marine Forum (OCIMF), an organisation with themission to be the foremost authority on safe andenvironmentally responsible operation of tankers and terminalsand to promote continuous improvement in standards of designand operation. NLNG is represented in the OCIMF keycommittees including General Purposes Committee (GPC), Ports& Terminals Committee (PTC), Gulf of Guinea Piracy FocalGroup (PGoG) and recently elected into the SIRE Focus Group(SFG).

Shipping: Major Milestones



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NLNG Ship Management Limited (NSML)NLNG Ship Management Limited (NSML) was set up inresponse to rapid changes and challenges in the maritimebusiness and the scarcity of ship board personnel worldwide,

to deliver on NLNG's strategic plan to have a shippingmanagement service, supported by a dedicated manningcompany to develop and supply qualified and competentshipboard personnel on board its ships. A subsidiary ofNLNG, NSML is charged with the rapid development ofNigerian shipboard personnel in line with internationalstandards and practices.

The establishment of NSML is also in furtherance of NLNG's

Nigerianisation policy which is in sync with the federalgovernment's local content drive.

NSML has continued to implement the Nigerianisation Planwith regard to BGT vessels. Since its commencement, theshipboard officers' Nigerianisation policy has produced sixcaptains and four chief engineers.

From 2001 to 2012, a total of 219 cadets have completed

their cadetship training program in UK maritime colleges. Aspart of their training, all cadets go on board BGT vessels forpractical experience; this is aimed at instilling early in them thediscipline required for successful career at sea and at meetingthe competency certification requirements. Engineering Cadetsand Junior Engineering Officers are also being trained toobtain qualifications in motor ships as well as the existing

steam ships, to allow NSML to meet additional the challengesand requirements of the new-build DFDE ships. By the end of2013 NSML had trained 25 Engineering Officers who nowhave dual certification.

In 2013, 17 cadets completed their three years cadetship andare now serving on BGT vessels as officers.

NSML currently has 192 Nigerian officers in its employ andnow completely manages the deployment/training of allofficers and cadets. Because we do not have many Nigeriansin the senior officer rank yet, in 2013, with Board approval,NSML started recruiting and employing foreign senior officers

to allow the Manning Agreement with AESM to run down. Atthe end of 2013 NSML employed nine such officers. NSMLcontinues the direct employment and management of Ratingsas approved by the NSML Board of Directors, for BGT. Thecompany presently has 154 Ratings in its employ and thisnumber 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 atMaritime 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


2014 nlng facts and figures part 1

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