facts & figures on nlng 2015

FACTS & FIGURES ON NLNG 2015

Fa c t s a n d F i g u r e s o n N L N G 2 0 1 52

Facts and Figures on NLNG 2015Facts and Figures on NLNG is an annual

compendium of facts about Nigeria NLNG

Limited. This publication is produced by the

Corporate Communication and Public Affairs

Department of Nigeria LNG Limited.

More information on the company's operations

can be found at www.nigerialng.com

All correspondence to:

Nigeria LNG Limited,

Intels Aba Road Estate,

KM 16, Port Harcourt-Aba Expressway,

Port Harcourt, Rivers State. Nigeria.

Phones: +234 (0) 803 907 4000,

802 473 4000, (0) 84 28 4000

E-mail: [email protected]

Fa c t s a n d F i g u r e s o n N L N G 2 0 1 5 3

Contents

The Company 7

Management Profile 12

The Plant 23

NLNG and its Contributions

to the Nigerian Economy 29

Gas Supply 38

Commercial 40

Shipping 44

Financing 57

Nigerian Content 61

The Environment 68

Community Relations and Development 76

The Prizes: The Nigeria Prize for Science,

The Nigeria Prize for Literature and

The Nigeria Prize for Literary Criticism 91


THE COMPANYNigeria LNG Limited (NLNG) was incorporated as a limited

liability company on May 17, 1989 to harness Nigeria's vast

natural gas resources and produce Liquefied 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

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

The company has two wholly–owned 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

NLNG Ship Management Limited (NSML) is another

wholly–owned 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.


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

HSE standards, honesty and integrity.

We help to build a better Nigeria by processing, shipping and

marketing efficiently and profitably the country's gas resources

and by putting out the flares, 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 fulfilling 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

To market, produce and deliver liquefied natural gas and

natural gas liquids to buyers safely, reliably and profitably,

growing our company and its people to their full potential, and

being a trusted partner with all our shareholders in the

sustainable development of Nigeria's gas industry and NLNG

host communities.

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 qualification, 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

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, refining, pipelines, marketing, crude/product

exports, and petrochemicals. NNPC owns 49% of the shares

in Nigeria LNG Limited.

Shell Gas B.V. (SGBV)

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

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

Pacific. It is a member of the Royal Dutch Shell Group of

Companies which operates throughout the world in all sub-

sectors 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 operates in more than 130

countries, and is, today, the fifth largest publicly traded

integrated international oil and gas company in the world. In

Nigeria, the company is one of the largest oil and gas

producers through its involvement in more than 50 permits,

including nine as operator. Total owns 15% of the shares in

Nigeria LNG Limited.

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

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.


NLNG Board of DirectorsOsobonye R. LongJohn Chairman

Babs Omotowa Managing Director/Chief

Executive Officer

Isa Mohammed Inuwa Deputy Managing Director

Dr. Joseph Dawha

Dr. Jamila Shu'ara

Cordelia C. Agboti

Bagudu Hirse

Ruud de Jongh

Markus Droll

Oghenegweke Ajaifia

Elisabeth Proust

Carlo Bottaro

Edith Unuigbe General Counsel/

Company Secretary

BGT Board of DirectorsOsobonye R. LongJohn President

Babs Omotowa Vice President

Isa Mohammed Inuwa

Dr. Joseph Dawha

Dr. Jamila Shu'ara

Aleruchi Cookey-Gam

Umaru Dahiru

Ruud de Jongh

Aydin Esener

Oghenegweke Ajaifia

Antonino Fiore

Luc Gillet

Donald H. Malcolm

David Astwood

Malcolm Mitchell Company Secretary

NSML Board of DirectorsDavid Ige Chairman

Isa Mohammed Inuwa Vice Chairman

Akachukwu Nwokedi Ag. Managing Director

Maikanti Baru

Aydin Esener

Temilola Okesanjo

Laurent Routisseau

Antonino Fiore

Edith Unuigbe Company Secretary


MANAGEMENT PROFILE

MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER

Babs Omotowa is the Managing Director/Chief Executive

Officer of Nigeria LNG and the Vice President of Bonny Gas

Transport. He is also the current Global President of the

Chartered Institute of Procurement and Supply (CIPS)

headquartered in the United Kingdom.

Babs has over 20 years experience in the oil and gas industry,

and prior to his current role at Nigeria LNG Limited, he was a

Vice President in Shell Sub-Sahara Africa, a Director of Shell

Petroleum Development Company, Nigeria (SPDC) and also

Director of West Africa Gas Pipeline Company.

He 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 and he is a Fellow of the UK

Chartered Institute of Procurement and Supply.

After a stint as a chemistry and mathematics teacher at Bishop

Smith College, Ilorin, he joined SPDC in 1993 where he

started his career as a management trainee and rose rapidly

to senior operations roles in the Western Operations in Warri,

before he went on international assignments with Shell in the

United Kingdom, Holland, and Norway, serving in various

managerial roles in Production, Shipping and Business

Improvement. He returned to Nigeria in 2006 as General

Manager Supply Chain for Shell Nigeria Exploration and

Production Company (SNEPCo) and later SPDC.

Over his distinguished career across Europe and Africa, Babs

has been renowned for strategic transformation, successful

turnaround, as well as maximizing value chains. His goal in

NLNG is to sustain the historical excellent performance, move

the company to the next level and make NLNG an inspiration

to Nigeria.

Babs is epitomised by his personal core values of Humility,

Modesty, Diligence, Excellence and Integrity. He is married

with children and his hobbies are reading and listening to

music.

Babs Omotowa


DEPUTY MANAGING DIRECTOR

Isa Mohammed Inuwa, a staff of NNPC is currently on

secondment to Nigeria LNG Limited as Deputy Managing

Director. With about 32 years professional work experience,

his academic background is in Accounting and Finance at

both Bachelor's and advance degree levels. In addition, he is

an alumnus of such business schools as IMD, INSEAD, .

Wharton, Witswatersrand, Said and Templeton Colleges of

Oxford University, Sendero Institute, Cranfield School of

Management and State University of New York. His

professional affiliations include membership of the Chartered

Institute of Bankers (UK and Nigeria) and associateships of the

Institute of Credit Administrators and the Institute Management

Consultants. His areas of academic interest cover Business

Strategy, Leadership and Accounting Policy.

Prior to joining NNPC in 2005 under the Pace Corporate

Transformation Programme as an Experienced Hire, Mr. Inuwa

had spent all his working life in the banking and financial

services industry where he rose to occupy executive, board

level positions at several banks.

At NNPC, he had stints as General Manager, Budget &

Projects, General Manager, Finance, NAPIMS and Group

General Manager, Corporate Audit, a position from which he

was seconded to NLNG. In addition to his primary job

responsibilities at NNPC, he was, and remains involved, in

actively providing internal consulting services through

leadership of, or participation in, policy and strategy initiatives

across the organization in such areas as HR, ERP, IT,

Renewable Energy, Retail, NCF, CP&S and Services.

On the outside, he has participated in several state and

Federal Government ad hoc assignments, served on several

boards and represented NNPC on the Federal Government's

Economic Management Team between 2006 and 2008. He

was previously an alternate member of Brass LNG Board Audit

Committee and alternate Chairperson of the Board Audit

Committee of West African Gas Pipeline Co. Ltd.

For years, Mr. Inuwa has been engaged in the activities of

several community development and Not-for-Profit

organizations, as patron, advisor, executive committee or floor

member. He is currently a trustee of two NGOs that care for

children with autism.

He reads widely, listens to jazz music, teaches at any

Isa Mohammed Inuwa


opportunity and recently retired from power biking. As a

member of Strategos Collective – a group of mentally restless

persons – he participates in endless discourses on Strategy, be

it on military expeditions, business turnarounds or on how Alex

Ferguson won mid-week matches!

He is married with two children and looks forward to

becoming a grandfather soon.

GENERAL MANAGER, PRODUCTION

Chima Isilebo is the General Manager, Production (PD),

responsible for the plant complex in Bonny, Rivers State, as

well as Gas Supply/Pipelines and Support Infrastructure.

Chima is a seasoned professional with more than 30 years of

oil and gas industry experience in both Upstream and

Midstream businesses, covering diverse disciplines including

Engineering and Project Management, HSSE, Business

Planning and Economics, Venture Governance, LNG

Commercial and Operations/Asset Management. A 1980

graduate of the University of Nigeria, Nsukka with a First

Class (Hons) degree in Mechanical Engineering, Chima

started his career with Shell Nigeria in August 1981, as a

Production Facilities Engineer, and has had a series of

challenging assignments in various locations within Nigeria

and around the world including, Europe (UK and the

Netherlands), Middle East (Oman) and South East Asia (Brunei

and Singapore).

He served as Operations Adviser – Shell UK St Fergus Gas

Terminal, and Operations Support/HSEQ Manager for Brunei

LNG, before being appointed in 2004 as the Start-Up

Manager and subsequently the first Nigerian Operations

Manager for Nigeria LNG Limited in 2006. During that

period, he oversaw the rapid expansion and integration of the

plant from a three-train 10 million tonnes per annum (mtpa) to

a six-train 22 mtpa operation.

Between 2008 and 2010, he was back in Shell Upstream

International as Vice President (Gas & Power) with

responsibility for South-East Asia (based in Singapore) where

he served as a Director on the boards of a number of Shell

Joint Venture companies in Brunei and Malaysia, including

Brunei Shell Petroleum, Brunei LNG, Brunei Shell Tankers,

Brunei Gas Carriers and Shell MDS in Malaysia.

He returned to NLNG again in 2011 as the first Nigerian

General Manager, Production.

Chima Isilebo


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. And has attended advanced

management and strategy executive education programmes at

IMD, Switzerland; INSEAD, France; Oxford University and

Harvard Business School.

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

Ogunde in 1990 and was managing counsel when he left the

law firm 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, conflict 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 and 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's Trains 4 and 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 mtpa LNG Sales and Purchase

Agreement negotiations with Suez LNG for the Yemen LNG

Project and was responsible for the 3.25 mtpa LNG Sales and

Purchase Agreements with BG Gas Marketing Limited and

Occidental Energy Marketing Inc. for NLNG's Train 7 Plus

project. In his time at Nigeria LNG, he has successfully led

several international LNG Sales Price Reviews including three

international arbitrations. Before he came to Nigeria LNG

Limited as General Manager, Commercial in 2007, Patrick was

Deputy General Manager (NLNG Commercial) in Total

Exploration & Production Nigeria. He speaks regularly at

international conferences.

Patrick Olinma


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 finance, project

accounting, investment portfolio management, joint venture

financing, capital assets oversight and investor relations. These

are complemented 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 Gas Division of Oil and Gas

Sector which later became Nigerian Gas Company Limited in

1988 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 office where he served at different times as Finance

Manager and Acting General Manager, NNPC London office,

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, Mr. Folaranmi was appointed General Manager,

Finance, of Nigeria LNG Limited.Solomon Segun Folaranmi


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 Ph.D 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, and 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

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 16 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 prolific 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. He is

also on the board of several academic and development

agencies including the Rivers State Sustainable Development

Agency, RSSDA.

Kudo Eresia-Eke


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

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 Petrochemical

Company (WRPC), a subsidiary of Nigerian National

Petroleum Corporation, NNPC, in 1983 where he was

employed as an Industrial Relations Officer and rose to

become Head, Industrial Relations; Head, Recruitment,

Records and Appraisals; Head, Management Training; and

Head, Litigation and 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 Non-Technical 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 conflicts

involving some of the IOCs with the national unions. He was

Chairman and Coordinator of the Nigerian Oil & Gas Industry

Games (NOGIG) for a period of 10 years.

He was also bestowed with several awards including the

NNPC's Group Managing Director's 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). Peter is also a member of the NLNG Ship

Management Limited (NSML) Board. Married with children,

Peter has attended numerous senior management courses

locally and internationally.

Peter Ogheneovo Odjoji


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 briefly 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.

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 first Nigerian employee to rise to the

position of General Manager, Shipping, in 2005.

Temilola 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 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.

Temilola Fatai Okesanjo


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, USA. Edith qualified in the Mini MBA in Oil

and Gas in Houston USA in 2008; obtained the International

Executive Programme Certificate from INSEAD Business

School, Fontainebleau, France in 2009; attended and

obtained a Certificate in Women's Leadership Forum

(Innovative Strategies) from Harvard University, Cambridge,

Massachusetts in 2011; and the Advanced Management

Programme Certificate 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.

Edith began her career in 1982 with the Office 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 United Bank for Africa (UBA) as

a Legal Counsel, Corporate Finance. In 1984, she joined

Kapital Merchant Bank Limited as legal officer 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.

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

and 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 in which role she manages

NLNG's legal services and provides secretariat services to the

Boards of Directors of NLNG, BGT and NSML.

Edith Unuigbe


THE PLANTIn 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 was

followed in December 1995 by the award of a turnkey

Engineering, Procurement and Construction (EPC) contract to a

consortium of engineering firms comprised of 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,

comprised of 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

condensate processing and additional 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 (Liquefied 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 a

robust framework of people, processes, systems and

organisation, and relentless focus on operational excellence

and continuous improvement. In addition to regular

maintenance of the assets to assure integrity and reliability,

opportunities are continuously sought to debottleneck the

plant, incorporating proven techniques and processes to

maximise production, and manage human interferences and

impacts. The plant has also embarked on a structured

programme of asset rejuvenation to extend the plant life

beyond the current design life. All these activities are

underpinned by an excellent Health, Safety, Security and


Environment (HSSE) culture that continually seeks improvements

in the safe and sustainable utilisation of our assets.

The plant continues to rank amongst the biggest and top

performers worldwide; its performance is regularly

benchmarked internationally with other LNG plants around the

world.

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, South American and Far East markets.

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:

l Diversified gas supply (Associated Gas and Non-

Associated Gas) and six main dedicated gas transmission

pipelines with four of them located on-shore.

l Six LNG processing units (trains) with a total nameplate

processing capacity of 22 mtpa.

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

cubic metres.

l Four LPG refrigerated storage tanks, each with a capacity

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

butane).

l Three Condensate storage tanks, each with a capacity of

36,000 cubic metres.

l A common fractionation plant to process LPG.

l A common condensate stabilisation plant.

l 10 gas turbine electricity generators with a combined

capacity of more than 320 MW.

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

while the other also exports Condensate, with a combined

capacity of more than 400 loadings per year.

l 24 LNG ships dedicated to the service of NLNG.

l A materials off-loading jetty.

l A passenger jetty/terminal.

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

sq.km.


NLNG: Major Milestones


NLNG AND ITS CONTRIBUTIONS TO THE NIGERIAN ECONOMYWith 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 flared. It is now also considered one of

the most important economic projects in Nigeria. NLNG has

already generated significant revenues for the nation.

Environmental Hazard ReductionNLNG has converted about 133 Bcm (billion standard cubic

metres) or 4.68 Tcf (trillion cubic feet) of Associated Gas (AG)

to exports as LNG and Natural Gas Liquids (NGLs), thus

helping to reduce gas flaring by upstream companies. 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.

Monetization of GasNLNG utilizes gas that would otherwise be flared, thus making

significant contributions to the nation's income while helping to

protect the environment. Payment to Joint Venture (JV) feedgas

suppliers from inception till date is almost USD21 billion; 55-

60 per cent of this amount goes to the Federal Government of

Nigeria via its shareholding in Nigerian National Petroleum

Corporation, NNPC.

NLNG has also over the years paid dividends of almost

USD30 billion, out of which 49 per cent went to the Federal

Government of Nigeria courtesy of its shareholding in the

company, again via Nigerian National Petroleum Corporation,

NNPC.

As a good corporate citizen, NLNG also contributes to

national wealth and economic wellbeing of states in which it

operates, by paying all applicable taxes and tariffs. In 2014,

the company's corporate income tax amounted to about N220

billion, thus making NLNG by far the highest tax payer in

Nigeria and Sub-Sahara Africa.

Foreign Direct Investment (FDI)With its plant construction, the company generated

considerable Foreign Direct Investment (FDI) for the country.

The project today has assets (i.e. property, plant and

equipment) worth over USD14 billion financed mainly by

NLNG’s shareholders, with 51 per cent stake by International

Oil Companies and 49 per cent belonging to the country

through the Nigerian National Petroleum Corporation, NNPC.

Gross Domestic Product (GDP)The company, since 2008, contributed about four per cent of

Nigeria's annual Gross Domestic Product (GDP) and with

current rebasing of the GDP, NLNG's contribution to the GDP

is put at about one per cent.


Job Creation

Nigeria LNG (NLNG) 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.

Through each Nigerian Content plan for its contracts, NLNG has

promoted the development and employment of Nigerian

manpower. For instance, 600 Nigerians will be trained in

Nigeria and at the contractors' (Hyundai and Samsung)

shipyards in Korea as part of the Nigerian Content deliverables

tied to the construction of six new LNG vessels by Bonny Gas

Transport (BGT), a wholly owned subsidiary of NLNG.

Those 600 Nigerians, with enhanced skills in welding, hull

assembly, pipe fitting, electrical, mechanical, painting and ship

design will join the country's workforce, providing a support base

for technology transfer and industrialization.

Thirty-five of the Nigerian trainees are currently in Korea for

participation in the ship construction and six Nigerians are

already working as ship managers (two Production Managers,

two QA/QC Managers and two HSE Managers) in the ship

construction at the shipyards in Korea.

Local Content Development

NLNG supports the development of community and Nigerian

contractors to enable them achieve standards of excellence.

In our host community, through the initiative to empower local

contractors via the Finima Legacy Project, local contractors

have made capital investments in their companies thereby

expanding their operating capacity. The capabilities of local

vendors have also been developed through mentoring and

engineering of partnerships between the more established

Nigerian vendors and the community vendors.

NLNG's shipping subsidiary, Bonny Gas Transport (BGT)

recently ordered for six new Dual Fuel Diesel Engine (DFDE)

LNG carriers. The carriers are currently under construction in

South Korea by Hyundai Heavy Industries (two ships) and

Samsung Heavy Industries (four ships).

The Nigerian Content commitment in the project, which is

defined in a Memorandum of Agreement between NLNG/BGT

and the shipyards (Hyundai Heavy Industries and Samsung

Heavy Industries) includes major initiatives such as the training

and development of Nigerians (both in Nigeria and Korea) in

various aspects of ship design and construction, the supply of

materials such as paints, cables, anodes and furniture by

Nigerian suppliers for the construction of the vessels, and

feasibility study on the establishment of the first LNG ship dry-

docking and ship repair yard in Nigeria.

Consequently, Berger Paints and Paints and Coatings MN have

produced and exported over 350,000 litres of paints; Nexans

Kabelmetal has shipped over 130,000 metres of low voltage

(LV) cables and METEC West Africa has exported over 9000


pieces of Aluminium and Zinc sacrificial anodes – all to the

ship yards in South Korea for use in the newbuild vessels.

METEC West Africa and Nexans Kabelmetal through NLNG's

Nigerian Content initiatives have also undergone international

class certification and inspection for the manufacture and

supply of sacrificial anodes and low voltage (LV) cables

respectively to meet the requirements of marine applications.

Berger Paints PLC has increased its portfolio of paints and

manufacture to international standards, having installed state-

of-the-art laboratory equipment and acquired additional

production equipment. Paints and Coatings Manufacturers

Nigeria PLC (PCMN) has acquired additional mixers and

laboratory equipment and gone ahead to become the first

company in Africa to receive the Inter Marine Organisation's

Intershield 300 Ballast Tank Coating certification. Holborn

Nigeria Limited developed capacity to manufacture 12 inch

(30mm) diameter High Density Polyethylene (HDPE) pipes

which had hitherto not been manufactured in the country.

Furthermore, deliberate technology transfer initiative has

enabled Waste Pipe & Drainages (WPD) to safely and

successfully complete the change out of all nominated

compressed air dryer bed desiccants in U-4700 (14 vessels in

total). This makes WPD the second Nigerian contractor with

this level of proficiency that can compete with the previous sole

contractor (CAKASA) in LNG Trains molesieve bed change out

activity.

Ship Dry Dock and Repair Yard

Nigeria LNG Limited (NLNG) in partnership with Hyundai

Heavy Industries (HHI) and Samsung Heavy Industries (SHI),

reached out to the investment community on 9th December,

2014 in Lagos, to promote the development of a ship repair

and maintenance yard in Nigeria - Badagry Ship Repair and

Marine Engineering Limited (BSME) - that will be sited at

Badagry after feasibility studies were carried out at various

sites (Onne, Bonny, Olokola, Badagry, Ogogoro Island, Ladol,

etc.). Currently, a Special Purpose Vehicle (SPV)that will

manage the development of Badagry Ship Repair and Marine

Engineering Limited (BSME) is being put together.

BSME will bridge the gap created by the absence of an

operational dockyard to cater for the repair and maintenance

of Very Large Crude Carriers (VLCC), LNG carriers, large and

medium size carriers, drilling Rigs and supports vessels. This is

one of the Nigerian Content deliverables on the BGT Plus

project.

Community Development

In our host communities, especially Bonny, housing, catering

and transportation enjoyed a boom as a result of huge capital

inflow 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

equipment and spare parts manufacturing. This is in addition

to the over N25 billion NLNG has expended on community

Also see the segment on Nigerian Content beginning from page 62.

Also see the segment on Nigerian Content beginning from page 62.


projects over the years. NLNG's host and pipeline communities

have enjoyed amenities from NLNG such as roads, hospitals,

schools, and supply of learning aids, among others.

Nigeria LNG Limited currently provides uninterrupted power to

the inhabitants and businesses on Bonny Island through a rural

electrification project managed by the Bonny Utility Company

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

Companies (JIC) which also includes water supply to the

Island.

BUC has provided Bonny communities over 98 percent

uninterrupted power supply since its inception, with per capita

electricity consumption increasing from under 250 kWh per

year in 2002 to over 960 kWh per year in 2014. Currently,

BUC serves 11,700 households, essentially covering the entire

island via its distribution network.

The benefits have been tremendous. Public services perform

better, businesses flourish because machinery and computers

can be utilised during the entire day, and residential users

experience higher comfort levels. The flourishing businesses, in

turn, generate jobs for the indigenes.

Domestic LPG Supply

NLNG commenced the supply of Liquefied Petroleum Gas

(LPG) otherwise known as cooking gas to the domestic market

in 2007 when refineries became challenged and supply was

grossly inadequate. Since then, the issue of inadequate supply

has become a thing of the past.

The intervention, which is in line with company's vision of

helping to build a better Nigeria, has significantly contributed

to the stimulation and development of the domestic LPG market

in Nigeria and has effectively brought down the price of

cooking gas from over N7,000 in 2007 to less than N3,500

per 12.5kg cylinder today.

NLNG is committed to delivering 250,000 tonnes of LPG into

the Nigerian market annually and has signed Sales and

Purchase Agreements (SPAs) with fifteen off-takers (all Nigerian

companies) for the lifting of LPG for the domestic market.

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

For more information, see Community Relations and Development beginning

from page 77.


company. The company continues to recruit young engineers

and other technical staff, as part of this initiative.

Increased Shipping/Marine Human Resources

With the incorporation of its first 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. NLNG has trained hundreds of

sea-going officers, some to the level of Captains and Chief

Engineers.

Corporate Social Responsibility

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. The company has added

a new prize for literary criticism worth N1 million in prize

money, to complement the existing literature prize.

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

company in May 2014 signed a Memorandum of

Understanding with six Nigerian universities for the

development of engineering education with USD12 million.

Under this initiative, NLNG has committed to spend USD2

million on each of the participating universities for construction

of modern engineering laboratories and procurement of

cutting-edge engineering equipment to aid teaching and

research. The beneficiary universities, spread across the six

geo-political zones, are University of Ibadan, University of

llorin, University of Pori Harcourt, University of Maiduguri,

Ahmadu Bello University, and University of Nigeria, Nsukka.

The project implementation commenced in October, 2014 and

is expected to be delivered in 2015.

The company promotes acquisition of vocational skills through

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.

The centre prides itself on its ability to help secure employment

for its graduates. At the moment, 107 BVC graduates are in full

time employment; 109 are in work placement (as interns) while

16 are in Samsung and Hyundai shipyards in Korea.

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 finance for

their contracts, or procurement orders, at competitive rates.

Over N200 million and over USD20 million have been

disbursed to NLNG vendors.


GAS SUPPLYNigeria 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 sufficient to sustain current production rates for over 60

years.

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

(potentially up to 600Tcf), if companies deliberately explore for

gas, as opposed to finding it while in search of oil.

The government aims to eliminate all flaring of gas associated

with the production of oil, and NLNG continues to play a

significant part in this. In the period 1999-2013, NLNG has

converted 133Bcm (Billion standard cubic meters) or 4.68Tcf

of Associated Gas (AG) to export products (equivalent to more

than 1630 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 reduce

upstream flaring in Nigeria even further.

Other demands on the use of Nigeria's gas are for domestic

power generation, domestic utilities and industries, as well as

export, NGL and gas projects such as the West African Gas

Pipeline Company Limited (WAGPCo) and, potentially, 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

industrialized countries like the Netherlands.

Gas Supply Agreements

Nigeria LNG Limited has long term Gas Supply Agreements

(GSAs) with three Joint Ventures (JVs) for the supply of natural

gas (feed gas) to the plant. These JVs are Shell Petroleum

Gas Production and Utilisation in Nigeria


Development Company of Nigeria Limited (SPDC), Total

Exploration & Production Nigeria (TEPNG) and Nigerian Agip

Oil Company Limited (NAOC).

Legend:

* - Operator

NNPC - Nigerian National Petroleum Corporation

SPDC - Shell Petroleum Development Company of

Nigeria Limited (Shell Affiliate)

NAOC - Nigerian Agip Oil Company Limited (Eni affiliate)

EPNL - Total Exploration Production Nigeria (Total Affiliate)

Feedgas

Feedgas is produced by the JVs from various concession areas

in the Niger Delta – from onshore and offshore fields – and

supplied to NLNG under a long term Gas Supply Agreement

with each JV. The agreements ensure efficient gas supply to the

plant throughout the life of the projects. SPDC-JV is currently

supplying feedgas from a number of fields 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 fields.

Additionally, under a special supply arrangement with the

SPDC-JV, an indigenous marginal field 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.

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 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 gas

rich in liquids is supplied to NLNG from its off-shore Amenam

and Akpo platforms. Recently in December 2014, TEPNG

commissioned delivery of some 35 to 40mmscf/d of

associated gas from its Ofon project through its Amenam

offshore plant as part of its flare reduction strategy. Currently,

TEPNG is completing a project to increase its supply capacity

from Obite Gas Plant. A related 42-inch diameter gas

transmission pipeline is also in project completion 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 and Sales Administration

Since October 1999 when the first LNG cargo was loaded for

delivery to Montoir Terminal in France, NLNG has maintained

its reputation as a safe, reliable and secure supplier of

Liquefied 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 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 International Trading Middle East Ltd and Total

Gas and Power Ltd.

The Long Term LNG buyers take delivery of their volumes at

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


agreements with several companies. Volumes have been

delivered to receiving facilities in Japan, South Korea, Taiwan,

China, India, Kuwait, Brazil and Argentina. This has positioned

the company as a major player in the global gas/LNG

industry.

NLNG has also executed over 38 Spot Free on Board (FOB)

LNG Master Sales Agreements with various companies located

across major LNG markets, enabling the sales of excess

production volumes to the spot market.

Natural Gas Liquids (NGLs)

Natural Gas Liquids, comprised of high quality Liquefied

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 tonnes per

annum respectively of Condensates and LPG. Both the LPG

(Propane & Butane) and Condensate are currently sold for

export on a Free on Board (FOB) basis to prequalified

companies and NLNG shareholders for export via competitive

tender and price matching processes respectively.

Domestic LPG Supply

In response to chronic supply shortages of LPG for domestic

consumption, NLNG commenced supply of LPG to the

Nigerian domestic market in 2007. The first NLNG LPG cargo

into the domestic market was discharged at Apapa jetty on

December 26, 2007.

To facilitate the Domestic LPG Supply Scheme, NLNG executed

Sales and Purchase Agreements (SPAs) with 15 off-takers (all

Nigerian companies). In line with our commitment to ensure

reliability of supply into the domestic LPG market thus helping

to grow the market, NLNG committed to make available up to

250,000 tonnes of LPG for the Nigerian market annually.

The Domestic LPG Supply Scheme is based on a Delivered Ex

Ship (DES) model with LPG delivered to the market via a

dedicated NLNG-chartered LPG tanker. Since inception of the

scheme in 2007 NLNG has supplied over 650,000 tonnes of

LPG.

The LPG Domestic Supply Scheme, which has been an

outstanding success, has led to a significant reduction in the

end-user price of LPG in the domestic market.

In The Future

NLNG, which currently delivers about 7% of the global LNG

supply, will continue to consolidate its position as one of the

largest producers and exporters of LNG in the world, thus

maintaining its position as a major, strategic and reliable

supplier of LNG and NGLs.

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 five buyers.


OFF-TAKERS CHART


EMERGING MARKETSHISTORICAL MARKETS


SHIPPINGNLNG has a total of 23 LNG vessels on long-term charter for

its six-train operation, and one domestic LPG vessel. All 23

LNG vessels are utilised on an integrated scheduling basis.

They load at NLNG’s Terminal in Bonny, Nigeria, for ex-ship

deliveries to buyers in Middle East, Asia, Europe, South

America, and Gulf of Mexico (GOM) including ports in

Mexico and the United States. The LPG vessel is utilized for

LPG delivery in the Nigerian market.

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

l Ten BGT vessels are managed and operated by NLNG

Ship Management Limited (NSML)

l Three BGT vessels are managed and operated by Shell

International Trading & Shipping Company Ltd (STASCo)


l Eight BW Gas vessels are managed and operated by BW

Gas

l Two Nippon Yusen Kaisha (NYK) vessels are managed and

operated by NYK

In 2014, five additional vessels were chartered on an ad hoc,

single voyage basis: Soyo from Angola LNG, Corcovado LNG

from Oceanus LNG, Lobito from Angola LNG, Sonangol

Benguela from Angola LNG and Cool Voyager from Energy

Shipping. All five vessels were redelivered to owners on

completion of their single voyage in 2014. Additional two

Dual Fuel Diesel Engines (DFDE) vessels, Golar Frost and Golar

Crystal, were chartered from Golar LNG for one year charter

period in January 2015.

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 March 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,

and the project was successfully completed in 2014.

The project achieved milestones which included the birth of

NLNG Ship Management Services (NLNGSS), a ship

management department in NLNG, and the consequent

phased take-over of the management of BGT vessels by

NLNGSS, which has since been integrated with NLNG Ship

Management Limited (NSML).

Between July 2011 and July 2013, NLNGSS (now part of

NSML) took over management of six BGT-owned vessels which

were previously managed by STASCo, and four BGT-owned

vessels which were previously managed by Anglo Eastern UK

Limited (AEUK), thereby taking over management of ten BGT-

owned vessels.

The integration of NLNGSS with NSML commenced in January

2014. By June 2014, NSML was granted a Document of

Compliance (DOC) to operate and manage vessels, and by

October of the same year, the management changeover of ten

BGT-owned vessels from NLNGSS to NSML was completed.

The integration of NLNGSS with NSML was completed in

December 2014 with the relocation of that ship management

arm of NSML to NSML office in Port Harcourt, Nigeria. This

relocation also marked the completion of the final milestone in

the SMKTP agreement. All Post-DOC services (office space,

Procurement, IT and Emergency Response) previously provided

by STASCo are now being fully carried out by NSML staff in

Port Harcourt.


With the SMKTP milestones now all successfully attained,

NLNG continues to increase ship management capacity

through continuous training and development.

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 fleet renewal and

optimization program. Consequently, BGT is currently building

six Dual Fuel Diesel Engine (DFDE) LNG carriers in South

Korea under the BGT Plus Project. Four of the vessels will

replace six older vessels while two are aimed at fleet

optimization to meet NLNG's appetite for more tonnage.

NLNG staff were involved in the design and plan approval

stage of the BGT Plus vessels at the Shipping Adviser's office in

Maldon, UK, and are now at the designated shipyards in

South Korea for active participation in construction supervision

during the construction phase of the project.

Training of Nigerians in the acquisition of DFDE experience

commenced in 2014, and will include cross-posting to

companies currently managing this class of vessels, shipboard

experience on board DFDE vessels, and deployment to

shipyards. The Nigerian Content commitment in the BGT Plus

Project, which is defined in a Memorandum of Agreement

between NLNG/BGT and the shipyards (Hyundai Heavy

Industries and Samsung Heavy Industries) includes major

initiatives such as the training and development of Nigerians

(both in Nigeria and Korea) in various aspects of ship design

and construction, the supply of materials such as paints,

cables, anodes and furniture by Nigerian suppliers for the

construction of the vessels, and feasibility study on the

establishment of the first LNG ship dry-docking and ship-repair

yard in Nigeria. This has witnessed success with achievement

of set milestones.

NLNG Operational Shipping Performance

2011 – 2014

Shipping Safety Record

Continuous improvement of HSE and operational performance

of each ship in the fleet is important to BGT and NLNG, and is

subject to continuous review.

Each ship in the fleet is continuously monitored and

benchmarked against LNG industry standards. This is done

through:

l Application and adherence to NLNG HSE Policy and

Procedures


l Biannual Fleet Managers' HSSE workshop to discuss and

exchange best practice and HSSE improvement

l 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

l Shipboard Audit Programme and Safety Management

Systems

l Continuous implementation and improvement of HSE

initiatives

l Independent LNG Shipping Performance Benchmarking

Programme

l Implementation of Behavioural Based Safety (BBS)

programmes to continually improve the safety culture

onboard

l Analysis and sharing of incident report recommendations

across the Fleet in a process called Learning from Incidents

(LFI)

l Continuous engagement with Fleet Managers for improved

performance

l Ship Management Assurance Review (SMAR) Audit which

involves sailing with the vessel.

l Quarterly HSSE newsletter to demonstrate commitment and

share learnings

l Monitoring and implementation of applicable local and

international regulations

l Worksite Hazard Management Programme

The application and enforcement of the above initiatives have

resulted in downward trend in Fleet *TRCF from 2011 to 2014

as shown below.

*TRCF – Total number of recordable cases expressed as a frequency in relation to

fleet-wide exposure hours.

*LTIF – Total number of Lost Time Injuries expressed as a frequency in relation to fleet-

wide exposure hours.

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 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 and Terminals Committee (PTC), Gulf of Guinea Piracy

Focal Group (PGoG) and recently elected into the SIRE Focus

Group (SFG).


SHIP MANNING

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 qualified 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 officers' Nigerianisation policy has produced six

captains and four chief engineers.

From 2001 to 2014, a total of 240 cadets have completed

their cadetship training programme 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 competency certification requirements. Engineering

Cadets and Junior Engineering Officers are also being trained

to obtain qualifications in motor ships as well as the existing

steam ships, to allow NSML to meet the additional challenges

and requirements of the new-build DFDE ships. By the end of

2014, NSML had trained 25 engineering officers who now

have dual certification.

In 2014, 13 cadets completed their-three year cadetship and

are now serving on BGT vessels as officers.

NSML currently has 194 Nigerian officers in its employ and

independently manages the deployment and training of all

officers and cadets. Because we do not have many Nigerians

in the senior officer ranks yet, in 2013, with Board approval,

NSML started recruiting foreign senior officers to allow the

Manning Agreement with AESM to run down. By the end of

2014 NSML had employed forty-three such officers. NSML

continues the direct employment and management of Ratings

as approved by the NSML Board of Directors, for BGT. The

company presently has 364 Ratings in its employment and this

number is expected to increase to 385 by end of 2015.

NLNG continues to support the Nigerian Maritime Academy,

Oron, to train manpower for the industry. Fourteen NSML

Ratings were sponsored to the Basic Mandatory STCW

Training at Maritime Academy of Nigeria, Oron in 2014.

For more information, see Nigerian Content, from pages 62 – 66.


FINANCINGTHE TRAINS

Trains 1 & 2 (Base Project)

The Base Project (Trains 1 & 2), which cost USD3.6 billion,

was financed by NLNG's shareholders.

Train 3 (Expansion Project)

NLNG's third train (Expansion Project), including additional

tankage, cost USD1.8 billion. The financing was carried out in

a manner similar to that of the Base Project. Besides the new

equity injection by the shareholders, revenue and surpluses

from the Base Project were re-invested in the Expansion Project.

Much of the cost of the new LNG tankers was borne by third

party financiers. When this loan was secured in 2002, the

amount represented the single largest lending to an industrial

complex in sub-Saharan Africa at the time.

Trains 4 & 5 (NLNGPlus Project)

Excluding ship acquisition, the cost for NLNGPlus project

(Trains 4 & 5) was USD2.2 billion. This was funded with a

combination of internally generated revenue and third party

loans amounting to USD1.06 billion.

The third party loans comprised of four Export Credit Agency

(ECA) guaranteed international commercial bank loans

totalling USD620 million, an uncovered international bank

loan of USD180 million, an uncovered Nigerian commercial

bank loan of USD160 million and an African Development

Bank facility of USD100 million. The ECAs, namely US EXIM,

ECGD, SACE and Gerling NCM, provided guarantees to a

group of 19 international banks led by BNP Paribas,

Citigroup, Credit Lyonnais, MCC and West LB. The ECA-

backed facilities as well as the African Development Bank

facility had eight year tenure. The facilities have been fully

repaid as at 15 December 2010, with a USD20 million short-

term 'place holder' financing remaining in place.

The financial discipline and character demonstrated by NLNG

in abiding by the loan covenants, terms and conditions

throughout the tenure has significantly increased the appetite

of international lenders for financing opportunities involving the

company.

Train 6

Final Investment Decision (FID) for NLNGSix was taken in July

2004 for the sum of USD1,748 million. Train 6 was principally

financed from internally generated funds. Start-Up was

December 14, 2007 and production commenced on 23rd

December 2007. The train is up and running.

THE SHIPS

Trains 1 & 2 (Base Project)

In 1990, the company raised a third party loan of USD132

million through Citibank to buy four ships for the Base Project.


The ships, built for another company but not put to use, were

refurbished and put into interim business until the plant began

operations.

Train 3 (Expansion Project)

Following the Third Train Expansion, three vessels were

acquired by BGT. Their construction was partly funded with

third party financing, viz:

l LNG Rivers and LNG Sokoto were financed with USD160

million syndicated loan which was signed on December

20, 1999. Credit-Suisse First Boston was the lead arranger

for this facility for which repayment started in 2002

following the delivery of the second vessel.

l The third external debt in connection with BGT fleet was

the loan inherited from the acquisition of two ex-Lachmar

ships (LNG Edo and LNG Abuja) from NLNG on August

1, 2001 when the outstanding debt stood at USD210

million.

l In September 2001, another syndicated bank loan for

USD100 million was arranged to assist with the

construction of LNG Bayelsa. Again, Credit-Suisse First

Boston played the lead role. The vessel was delivered in

February 2003.

Trains 4 & 5 (NLNGPlus Project)

Hyundai Industries and Daewoo Shipyard built the eight

additional ships needed for NLNGPlus project. Of the eight

vessels, BGT owns four while others were chartered from

Bergesen d.y. of Norway. BGT raised USD460 million in

March 2003 to partly fund the construction of the vessels.

This facility was arranged by ABN AMRO Bank, Credit

Lyonnais, Fortis, ING Bank, HVB, Verein und Westbank and

West LB. The balance of USD282 million came from internally

generated revenue and shareholders' funds.

BGT refinanced all the foregoing third party facilities in 2006

with a USD680 million facility through Standard Chartered

Bank. This is secured against the 13 vessels in BGT's fleet.

Train 6

Following the signing of NLNG Train 6 Final Investment

Decision (FID), six LNG vessels were built and delivered at a

combined cost of USD957 million on long term charter to

NLNG.

The vessels were built at Daewoo Shipyard and Samsung

Shipyard in South Korea. Four of the vessels were chartered

from BW GAS Asa of Norway and two from NYK LNG

(Atlantic) Ltd of Japan.

Expanded Business

Production from the six train plant approaches name-plate

capacity and LNG is now delivered in more distant

destinations, in response to changing business opportunities.


As a result, additional shipping capacity has become

necessary. Bonny Gas Transport is having six new vessels

constructed by Hyundai Heavy Industries (two ships) and

Samsung Heavy Industries (four ships); these will be completed

in 2016.

Financing for the six vessels has been arranged in two

programmes: a USD310 million six-year Additional

Programme Debt (APD) facility and a USD 1,100 million

twelve-year New Vessel Debt (NVD) facility. The APD is

additional indebtedness under 2006 vessel financing

arrangement, while the NVD is a fresh facility with several

international commercial banks and Export Credit Agencies as

lenders, including Korean Export-lmport Bank (KEXIM), and the

Korean Trade Insurance Corporation (K- SURE). The deals were

signed off on March 26, 2013.


NIGERIAN CONTENTNLNG and Nigerian Content

Nigeria LNG Limited considers Nigerian Content – a

deliberate, conscientious use and development of Nigerian

human and material resources and services – an important

feature of all its activities.

All approved Nigerian Content Plans are aimed at attaining

maximum achievable Nigerian Content deliverables in related

activities, the ultimate goal being to achieve the targets set in

the Nigerian Oil and Gas Industry Content Development Act

(NOGICD) 2010. By embedding the requirements of the

NOGICD Act 2010 in all its contracting and procurement

processes, the company has enshrined Nigerian Content as a

key deliverable.

NLNG's commitment to the Nigerian Content Act is expressed

through its policy geared towards:

(i) Development of sustainable value-adding relationships with

local companies that result in job creation and

domestication of previously exported value.

(ii) Enhancement of local/indigenous production capability

through deliberate targeted interventions.

(iii) Encouragement of knowledge and technology transfer

achievable within its projects, contracts and procurement

activities.

(iv)�Training, development and employment of Nigerian human

resources

The company's performance on Nigerian Content is governed

by a committee of NLNG Board of Directors and Senior

Management Team. Consequently, through contracts,

procurements and projects tied to the six trains currently in

operation and continuous sponsorship of various community

projects, ample opportunities have been provided for Nigerian

companies and contractors to provide services and supply

goods to the company whilst their capabilities to compete on

an international scale are being enhanced.

Nigerian and Community Vendor Development

In a proactive bid to discover more Nigerian sources, Nigerian

Content surveys and vendor forums are conducted at

scheduled intervals to identify indigenous companies capable

of providing the goods and services required by NLNG.

Below are some laudable achievements in this regard.

l Through NLNG's initiative to empower local contractors via

the Finima Legacy Project, five local contractors have made

capital investments in their companies thereby expanding

their operating capacity.

l Strategic partnerships between the more established


l Strategic partnerships between the more established

Nigerian vendors and the community vendors, as in the

case of SJ Abed and Vikal Nigeria Enterprise.

l Fifty-four vendors from the community were trained at the

Bonny Vocational Centre to improve their skills in project

management and in responding to enquiries and bids.

l NLNG’s deliberate strategies implemented to increase

spend in the community have seen a significant increase in

spend year on year with direct spend increasing by over

100% between 2011 and 2013 and a further increase in

2014.

Shipping

A key initiative in shipping was the contract award by Bonny

Gas Transport (BGT), a wholly owned subsidiary of NLNG, to

construct six new Dual Fuel Diesel Engine (DFDE) LNG carriers

– four by Samsung Heavy Industries (SHI) and two by Hyundai

Heavy Industries (HHI). The six vessels being built in South

Korea under the BGT Plus Project will enhance the level of

Nigerian ownership and shipping capacity in the fleet through

the government's holding in NLNG.

For the contract, NLNG made additional investment to the

contractors' commitment for:

a) Use of suitable Nigerian goods and services in the

construction of the vessels.

b) Training of over 600 Nigerians in ship building in both

Nigeria and the contractors' shipyards in Korea.

c) Utilization of qualified Nigerians in the contractors'

shipyards as part of the workforce for the construction of

the vessels.

d) Promotion of the establishment of a ship repair yard in

Nigeria for in-country development of repair and

maintenance capacity for LNG ships and other large

carriers.

Ship Dry Dock and Repair Yard

Nigeria LNG Limited (NLNG) in partnership with Hyundai

Heavy Industries (HHI) and Samsung Heavy Industries (SHI),

reached out to the investment community on 9th December,

2014 in Lagos, to promote the development of a ship repair

yard in Nigeria – at Badagry Ship Repair and Marine

Engineering Limited (BSME) – that will be sited at Badagry

after feasibility studies were carried out at various sites (Onne,

Bonny, Olokola, Badagry, Ogogoro Island, Ladol, etc.) A

Special Purpose Vehicle (SPV) that will manage the

development of the repair yard is being put together.

BSME will bridge the gap created by the absence of an

operational dockyard to cater for the repair and maintenance

of Very Large Crude Carriers (VLCC), LNG carriers, large and

medium size carriers, drilling Rigs and supports vessels. This is

one of the Nigerian Content deliverables on the BGT Plus

project.


Training and Skills Acquisition

l Thirty-five Nigerian trainees are currently in Korea at

Hyundai Heavy Industries’ shipyard to participate in the

ships’ construction in part implementation of Nigerian

Content deliverables on the BGT Plus project. This number

includes 28 out of the 57 trainees who recently completed

their initial training in Korea and seven out of the 20 that

successfully concluded training on Ship Design at

International Energy Service Limited (IESL) in Lagos.

l Over 90 Nigerians have completed the basic welding

training in the Bonny Vocational Centre training facility of

Hyundai and Samsung Heavy Industries.

l Six Nigerians are working as ship managers (two

Production Managers, two QA/QC Managers and two

HSE Managers) in the ship construction at the shipyards in

Korea.

l Fifty-seven trainees are undergoing ship construction

training in Samsung Heavy Industries in Korea.

l Training of Nigerians in the acquisition of DFDE

experience commenced in 2014 and includes cross-

posting to companies currently managing this class of

vessels, shipboard experience on board DFDE vessels, and

deployment to shipyards.

l The Ship Management Knowledge Transfer Project

(SMKTP) initiated in 2008 with Shell International Trading

and Shipping Company Limited (STASCo) was successfully

completed in 2014. Milestones included the birth of NLNG

Ship Management Services (NLNGSS), a ship

management department in NLNG, the phased take-over

of the management of BGT vessels by NLNGSS, and the

complete integration, in December 2014, of NLNGSS with

NLNG Ship Management Limited (NSML), the

wholly–owned subsidiary of NLNG dedicated to provision

of ship manning and management services to NLNG and

the industry at large.

University Support Programme

The University Support Programme, launched in 2014, is part

of NLNG's commitment to develop education and complement

the various efforts of government, the academia and other

stakeholders in Nigeria's education sector. Through the

programme, NLNG will spend about USD12 million

(representing USD2 million per university) on building modern


engineering laboratories and procuring latest engineering

equipment to aid teaching and research in six universities

across the six geopolitical zones in Nigeria, namely: University

of Ibadan, University of Nigeria, Nsukka, University of

Maiduguri, University of Ilorin, University of Port-Harcourt and

Ahmadu Bello University.

Construction, renovation and/or procurement work has been

ongoing in those universities since October 2014 when the

project implementation phase kicked off. The project is

expected to be fully delivered in 2015.

Finance

NLNG vendors continue to benefit from the 1 Billion USD

NLNG Local Vendors Financing Scheme (NLVFS) which offers

funding at extremely competitive rates to Nigerian vendors.

Under the scheme, vendors are not mandated to provide

collateral and require only modest capital contribution, with the

banks given the assurance of domiciliation of payments with

them. Over N200 million and over USD20 million has been

disbursed to NLNG vendors under the scheme to date.

Services and Procurement

NLNG encourages full participation of Nigerian companies in

its contracting and procurement processes while maintaining

international standards on quality, cost, schedule, ethics,

health, safety and environmental protection.

To facilitate Company's drive to expand its pool of competent,

reliable and competitive vendors and promote Nigerian

content development, the “Supplying Goods and Services to

NLNG” section of the NLNG website has been updated with

information relevant to vendors for conducting business with

NLNG including:

l Areas of business in NLNG with available or limited

opportunities

l Overview of upcoming contracting/procurement

opportunities in NLNG

l Details for registration on the Company's Electronic Vendor

Information Management System

l Vendor development opportunities

l Vendor related Frequently Asked Questions.

Examples of major awards made to Nigerian service providers

recently:

l Two Nigerian companies are currently managing the

Marine Operations Strategy Contract, a deliberate effort

by NLNG towards encouraging in-country assembly of

passenger boats, escort boats, rib craft in Nigerian ship

yards, and utilizing Nigerian materials and human

resources in the assembly of the vessels.

As listed below, Nigerian goods and materials have been

exported to Korea for use in the construction of the six new

DFDE LNG carriers.

l Paints manufacturing by PCMN and Berger Paints

Nigeria Plc is ongoing; over 350,000 litres of paints

have been produced and exported to both ship yards

in South Korea


l Over 130,000 metres of low voltage (LV) cables from

Nexans Kabelmetal have been shipped to Korea.

l Over 9000 pieces or 158 tons of Aluminium and Zinc

sacrificial anodes from Metec West Africa have been

produced, shipped and installed on the hulls in Korea

l Other goods and materials including moveable ship

furniture will also be exported to the ship yards.

Vendor Development

Doing business with Nigeria LNG has engendered

improvement in some of our Vendors' business processes,

upgrading of their facilities and capacity to meet very stringent

requirements.

In the past, NLNG worked with Dorman Long Nigeria and

Nigerdock Nigeria PLC to enhance their galvanisation

capability, with Nexans Kabelmetal to increase manufacturing

capacity and with Nigerian Foundries to improve their

processes for the manufacture of trench gratings and manhole

covers.

Recently, Metec West Africa and Nexans Kabelmetal through

NLNG's Nigerian Content initiatives have undergone

international class certification and inspection for the

manufacture and supply of sacrificial anode and low voltage

(LV) cables respectively to meet the requirements of marine

applications in ship building.

Deliberate technology transfer initiative has enabled Waste

Pipe & Drainages (WPD) to safely and successfully complete

the change out of all nominated compressed air dryer bed

desiccants in U-4700 (14 vessels in total). This makes WPD the

second Nigerian contractor with this level of proficiency that

can compete with the previous sole contractor (CAKASA) in

LNG Trains molesieve bed change out activity.

The underlisted are examples of some of the indigenous

companies which have recently benefited from NLNG

Nigerian Content Policy implementation drive.

Berger Paints PLC

Berger Paints PLC received an order to supply marine coatings

for use on the two new DFDE LNG carriers being built in South

Korea for BGT by Hyundai Heavy Industries. Following that

order, the company was able to increase its portfolio of paints

and manufacture to international standards, having installed

state of the art laboratory equipment and acquired additional

production equipment.

Paints and Coatings Manufacturers Nigeria PLC

(PCMN)

Paints and Coatings Manufacturers Nigeria PLC (PCMN),

exported marine coatings to Korea for use on the four new

DFDE LNG carriers being built in South Korea for BGT by

Samsung Heavy Industries. As a result of the order and the

need for the company to increase capacity and competence,

PCMN had gone ahead to become the first company in Africa

to receive the Inter Marine Organisation's Intershield 300


certification. The company had also acquired additional

mixers and laboratory equipment.

Dornier Aviation Nigeria AIEP Ltd (DANA)

Nigeria LNG Limited recently awarded an aviation contract to

Dornier Aviation Nigeria AIEP Ltd for the management of

transportation of its staff and contractors to and from Bonny,

Lagos, Abuja and Port Harcourt. Part of the obligations to fulfil

the Nigerian Content requirement and deliverables for the

contract is the training of two Nigerian Pilots, by Dornier

Aviation Nigeria AIEP Limited.

Holborn Nigeria Limited

The positive outcome of a business relationship Nigeria LNG

Limited entered into with Holborn Nigeria Limited is the

manufacturing of 12 inch (30mm) diameter High Density

Polyethylene (HDPE) pipes which had hitherto not been

produced in the country. The company, with intervention and

support from NLNG, commenced manufacturing of these pipes

in Kano and the first order of supplies were subsequently made

to NLNG. The strategic impact of this ground-breaking

production by Holborn is significant.

Niger Delta Petroleum Resources

Nigeria LNG Limited recently engaged Niger Delta Petroleum

Resources (NDPR) – an indigenous marginal oil and gas field

operator – to supply up to 35mmscf (about 1 % of NLNG's

daily plant demand) of natural gas. The NDPR opportunity was

explored in conjunction with Shell Petroleum Development

Company of Nigeria Limited (SPDC) which gave initial

technical support required for the project development. NLNG,

however, successfully took over technical management support

of the project over a five-year period, culminating in the

successful commissioning of the gas supply project. This

achievement meets aspirations of increasing indigenous

contractors' participation in oil exploration activities as well as

reducing flaring activities in the country.


THE ENVIRONMENTNLNG has a sound Health, Safety and Environment (HSE)

policy anchored on the need to take proper care of its assets,

the health and safety of its employees and stakeholders, and to

give proper regard to the sustainable management of the

environment.

In line with this, NLNG plans its work to:

· Prevent injuries and ill-health to workers and surrounding

communities;

· Prevent damage to assets and minimise any negative

impact on the environment;

· Avoid or eliminate future liabilities;

· Meet requirements for demonstrable due diligence.

Nigeria LNG Limited ensures continuous compliance with

applicable legislations as stipulated by the various regulatory

bodies (Federal Ministry of Environment (FME), Department of

Petroleum Resources (DPR), Rivers State Ministry of Environment

(RSME), etc) that have issued permits for her various operations

by carrying out regular reviews and evaluation of all existing

and proposed environmental laws and regulations that impact

or have potential impact on NLNG Business.

NLNG being the first major multinational company in Nigeria

to complete full EIA process for all its operating Trains 1-6

Projects before commencement of business, regularly interfaces

with the Federal Ministry of Environment (FME) and other

relevant Stakeholders, locally, nationally and internationally on

environmental issues.

An important element of the EIA process is to identify and

mitigate potential adverse impacts of NLNG's operations. For

NLNG's existing projects, a number of potential impacts

(positive and negative) were identified and mitigation

measures taken for the adverse impacts.

As a key stakeholder on issues that concern the environment,

FME regularly carries out quarterly impact mitigation

monitoring and annual compliance monitoring exercises of

NLNG Projects.

In addition, NLNG conducts regular monitoring of its own HSE

performance, in pursuance of continuous improvement and to

foster a positive HSE culture within the organisation, NLNG

conducts regular monitoring of its own HSE performance.

A summary of NLNG HSE statistics from 2007 to

2014 is as shown in the chart below:


Discharges to Water

To ensure compliance with regulatory requirements and its HSE

policy, NLNG has adopted the principle of minimisation

through abatement at source for aqueous effluents which have

the potential of causing negative impact on the receiving

environment. Where this is not feasible, application of end-of-

pipe technology is utilised. Key environmental indicators are

regularly monitored to ensure NLNG's compliance with permit

conditions and applicable regulatory limits.

Periodically, a Post Impact Assessment of the recipient water

body is carried out to assess the cumulative impact of NLNG's

treated effluents and to confirm that NLNG's activities are not

interacting adversely with the environment.

Sewage Treatment and Disposal

NLNG has a dentrification/nitrification biotreater for waste

water. Sewage from the plant and all domestic sewage from

the Residential Area are treated in this facility so that only

treated clean water flows into the river. The biotreater is

designed to meet the stringent effluent water quality

specifications as recommended in the Health, Safety and

Environment Premises.

Solid Waste Management

Nigeria LNG's waste management strategy complies with the

concepts of 'waste management hierarchy' and 'duty of care'

for both on-site and off-site waste treatment and disposal

activities. The principle adopted for solid waste is the 'Cradle

to Cradle' principle, which is essentially the proper and

controlled handling, treatment and disposal of solid waste,

underpinned by the 4R philosophy of Reduce, Reuse, Recycle

and Recover. 'Duty of care' audits are regularly carried out

with federal and state government regulators. The company's

overall waste management performance objectives are to

minimize waste generated and continuously increase the

percentage of wastes recycled and/or reused when compared

to the fraction disposed or stored on-site.

Non-Hazardous Waste

The incineration of combustible waste is carried out within

NLNG's facility as the fragile nature of Bonny Island does not

allow for the creation of a landfill site. Consequently, non-

hazardous solid wastes are temporarily stored on the plant site

before being transported to treatment and/or disposal facilities

Waste Hierarchy


off the Island. These facilities are duly accredited by the

Federal Ministry of Environment and/or environmental

sanitation authorities.

Hazardous Waste

NLNG is committed to its policy of no harm to people and the

environment and the promotion of sustainable development.

The company therefore ensures the proper management of its

hazardous waste using the best practical environmental options

after approvals from the federal and state ministries of

environment.

Other waste management initiatives currently pursued by

NLNG particularly for hazardous waste include the use of buy-

back and recovery schemes with original manufacturers.


Emissions to Air

For emissions to air, the principle adopted is minimisation

through abatement at source. Dispersion modelling was

employed in initial environmental investigations to predict

possible areas of deposition of pollutant species for regulated

parameters that could potentially be generated from NLNG's

operations. In order to monitor its operational foot print, stack

emissions and ambient air quality monitoring are routinely

carried out at identified areas within the plant fence and

surrounding communities to ensure that ground level

concentrations at the workplace and in the nearby settlements

do not exceed regulatory tolerance limits for ambient air

pollutants.

NLNG is also committed to addressing the climate change

challenges through the implementation of Green House Gas

(GHG) and Energy Management Plan.

Environmental Noise Measurements and

Performance

Noise level measurements within the plant fence and in nearby

communities are carried out regularly to ensure that the results

meet regulatory requirements as well as the Project Noise

Design Specifications.

Below are typical Results for Noise Measurements carried out

at the plant fence:


BIODIVERSITY AND NATURE CONSERVATION

Nigeria LNG Limited has established a nature park on Bonny

Island to preserve the natural environment of its host

communities. The site of the Nature Park is the natural habitat

of salt water Hippopotamus, now rare in Nigeria, and other

interesting flora and fauna prevalent on Bonny Island.

�The park was established in recognition of the importance of

the flora and fauna, the sacrifices of Bonny people, and their

aspiration and commitment to keeping a permanent record of

their natural heritage and culture. It is also part of NLNG's

contribution to the national and global conservation objective,

in line with Rio Agenda 21, the Ramsar Convention and

Convention on Biological Diversity.

The park, named Finima Nature Park and measuring

approximately 1000 hectares, is for conservation, recreation,

and research on the fauna, flora and cultural heritage of Bonny

Kingdom. At present, the nature reserve is managed by an

NGO, the Nigerian Conservation Foundation (NCF). However,

in the future, it will be managed by a Board of Trustees drawn

from the host community, thereby encouraging community buy-

in and sustainability of the initiative.

The reserve area covers the rain forests and mangrove

swamps, as well as an ecologically important area of sandy

soil with fresh water ponds and tall timber between the

swamps and the beach. This diversity is a good representation

of the Niger Delta ecology, which affords a unique opportunity

for research and educational activities. Already, the reserve is

home to some wildlife species of high conservation value, a

variety of mammals, bird species and reptiles such as the

Mona monkeys, crocodiles, snakes and alligators.

In addition, Finima Nature Park is home to a number of species

classified by International Union for Conservation of Nature

(IUCN) such as the African Grey Parrot – Psittacus erithacus. A

number of studies including ornithological surveys are also

regularly carried out at the Park.

There is steady growth in the population of indigenous species

in the park as a result of measures put in place by NLNG,

discouraging hunting in the park and encouraging the

preservation of natural habitat.

In pursuing its environmental objectives, the company

considers public consultation and enlightenment fundamental

to fostering good relationships with its neighbours. Hence it

has initiated forest protection and biodiversity conservation

enlightenment campaigns in accordance with recommended

EIA mitigation measures.

Finima Nature Park is policed by park rangers who prevent

encroachment, monitor movement of animals, rescue animals

and provide guided tours within the park and adjoining areas.


The rangers during their routine park walks in October 2014

discovered and retrieved whale bones that were washed

ashore along the coastal boundary of the Park. A total of 69

pieces of the whale skeletal parts were collected and

assembled and are currently being preserved at Finima Nature

Park (see picture on page 73 and below).

The company has partnered with community-based

organisations such as the Bonny Environmental Consultants'

Committee (BECC) and such non-governmental organisations

as Niger Delta Wetlands Centre and Nigerian Conservation

Foundation in outreach programs to schools, organisations and

settlements within Bonny Kingdom with the objective of

establishing conservation clubs in primary and post primary

schools and entrenching the culture of conservation early in the

youth.


COMMUNITY RELATIONS AND DEVELOPMENTNigeria LNG's approach to corporate social responsibility is

anchored on sustainability, stakeholding and partnership.

As part of its CSR activities, the company, through the

Community Relations and Development Department, provides

support to its host communities. Specifically, NLNG supports

the improvement of infrastructure, health and educational

facilities and encourages local enterprise, facilitating know-

how and building capacity in the sustainable use of resources

in its host communities.

To build and maintain positive relationships with the

communities, engagement specialists are assigned to specific

settlements as engagement officers, covering Bonny, Finima,

Rumuji, Ubeta, and the pipeline communities. Others work as

development officers specialising in key areas such as health,

education, economic empowerment and youth development.

The company operates an open door policy. Officers meet

regularly with representatives of the host communities, formally

and informally, to maintain good relationships and enhance

mutual advancement.

Joint Industry Companies (JIC)

In 1998, the Joint Industry Companies (JIC), made up of

NLNG, Shell Petroleum Development Company Limited (SPDC)

and Exxon Mobil signed an MOU with Bonny Kingdom. This

development led to the establishment of the Bonny Utility

Company (BUC) with the sole responsibility of delivering

sustainable water supply and electricity to Bonny Kingdom. The

JIC has implemented many other projects under the MOU;

these include the 1.5km by-pass road, the 1.2km access road

and the Bonny Master Plan.

Pan Bonny Sustainable Development Conference

A Pan Bonny Sustainable Development Conference was

convened on the 25th of May 2013 by His Majesty, King

Edward Asimini William Dappa Pepple III, Perekule XI,

Amanyanabo of Grand Bonny Kingdom, in conjunction with

Bonny Chiefs' Council, and with the active support of the Joint

Industry Companies (JIC) led by Nigeria LNG Limited to

determine the future of development on Bonny Island.

The theme of the conference was "Expanding Partnerships to

Harness Multiple Opportunities for Growing a Local Economy

for Bonny Kingdom."

Conference accordingly resolved as follows:

1. That Bonny will update the Master Plan supported by

partners, in a manner that Bonny people can drive its

implementation, starting with the acquisition of baseline

information, to evolving a shared strategic development

vision and plan, with which they can define the direction

and measurement of progress.


2. That Bonny will create a partnership platform as a formal

way of bringing together old and new development

partners, especially those interested in human development

and business/commercial partnerships, as well as in

creating synergy with government and development

agencies for the benefit of the kingdom and its people.

This platform is to be called Bonny Kingdom Partners for

Business and Development (BKPBD).

3. In order to be better prepared and welcoming to potential

partners as well as attract and maintain the confidence of

investors, developers and development agencies, Bonny

people resolve to evolve viable development governance

structures, maintain a conducive atmosphere for business to

thrive and organize themselves into effective business

institutions which meet current best practices.

4. That Bonny people will undertake self-reorientation to guide

the entire community towards enhancing business growth

and productive attitudes such as self-reliance,

entrepreneurship, and partnership building, in order to

engender growth and prosperity in the kingdom.

5. Conference agreed to set up an economic and social

development fund for Bonny, to finance the implementation

of the updated Master Plan when in place. It was also

agreed that the fund shall be set up and managed in line

with global best practices in order to inspire the

confidence of donors. Reputable global fund managers

shall advise Bonny Kingdom on the setting up and

management of the fund. The fund shall serve the purpose

of servicing infrastructural, enterprise and social

development, with a view to a secured economic future

and heritage investment to cater for the next generation

through investment in equities and bonds.

Already, an executive committee set up by JIC is looking into

bringing these aspirations to fruition. The Bonny Master Plan

has been updated, and will be formally presented to the

community in 2015. Thereafter, the institution to drive its

implementation will be inaugurated.

In 2014 another conference was held – the first ever Bonny

Youths National Conference. Its primary objective was to

reinforce the commitments made by the entire kingdom at the

Pan Bonny Sustainable Development Conference, and to

ensure that the youths of Bonny kingdom are able to drive this

vision as leaders of tomorrow.

Bonny Utility Company (BUC)

Bonny Utility Company manages the provision of utilities –

power and water – on Bonny Island. BUC activities are funded

by the Joint Industry Companies (JIC), comprising NLNG,

SPDC and Exxon Mobil with a financial contribution ratio of

50:30:20 respectively.

The initiative has provided Bonny communities over 98 percent

uninterrupted power supply since its inception. The benefits


have been tremendous. There has been high local

development impact, with per capita electricity consumption

increasing from under 250 kWh per year in 2002 to over 960

kWh per year in 2014, full-time and part-time jobs created for

the local community, and years of disturbance-free operation

for the Island's major industries. Public services perform better,

businesses are flourishing because machinery and computers

can be utilised during the entire day and residential users

experience higher comfort levels. The scheme has also

improved the environment by eliminating noisy polluting

generator sets and, thanks to functioning street lighting, made

it safer to walk the streets of Bonny Town.


Currently, BUC serves 11,700 households, essentially covering

the entire island via its power distribution network.

The scheme offers customers a progressive tariff schedule; there

is a free basic allowance followed by increasing energy

charges as a function of consumption. As a result,

customers—who range from low-income households to larger

service sector businesses—receive an indirect subsidy. The

utility uses prepayment metering and cash free transactions to

collect revenues.

BUC also handles the operation, maintenance and

management of water facilities in Bonny Island. The

sustainable water development interventions provided by

NLNG and its JIC partners include the multi-billion Naira

drinking water infrastructure in the ongoing Bonny water

upgrade.

The scope of Bonny water upgrade project includes the

following:

l Installation of water distribution network (about 90Km) to

the entire community with HDPE pipes.

l Construction of water fetching kiosks (about 300) at

different locations in Bonny and Finima for public use.

l Drilling of bore holes and construction of new water

treatment plants and overhead water tanks at

Ogugumanga, Old Town (Bypass Road area) and Akiama

.

Right of Way Maintenance Contract

NLNG recognises the Nigerian cultural attachment to land and

the obvious fact that no legislation, no matter how well

intended, captures all the expectations of the people. It is in

this regard that it adopted a systematic approach in its

pipeline communities which seeks to promote "a sense of

ownership or identification" and meet the communities'

expectations.

NLNG, after paying compensation for Right of Way trees and

crops, went the extra mile to ensure that perceived feelings of

dispossession and deprivation were assuaged. This was done

through the award of Gas Transmission System (GTS) Right of

Way (ROW) surveillance contracts.

Holders of GTS ROW Maintenance Contracts, which rotate

among the land owning families only, employ family members

to execute jobs which cover:

l Pipeline Right of Way surveillance and inspection

l Asset maintenance: painting of signposts and markers,

grass cutting, etc.

To encourage the contractors, an annual award ceremony is

held to recognise outstanding ROW contractors. Awards are

given to the Best HSEQ Compliant Contractor, and for the

timely submission of reports, among others.


COMMUNITY DEVELOPMENT INFRASTRUCTURE PROJECTS

With activities ranging from electricity generation, road

construction and repairs to water supply as well as building

and furnishing of schools, Nigeria LNG Limited has made the

concept of good neighbourliness come alive in its host

communities. It has constructed ultramodern health centres,

provided hospital equipment, and, in some cases, also

installed electricity transformers. It has built several kilometres

of roads, several schools and primary health centres in several


communities in Rivers State and promoted social interaction

among communities. These are in addition to health awareness

campaigns, engagement sessions, sponsorship ofimmunization

campaigns, renovation of schools and town halls, sinking of

water boreholes, and provision of school desks and writing

materials in host and pipeline communities.

Examples of some of the projects successfully executed in our

host and pipeline communities are:

l Omokwa Town Hall project

l Rumuji 2.7Km road project

l Ogbunabali – upgrade of health centre

l Anwunugbokor – complete fencing and installation of

water bore-hole in the community school

l Amadi-Ama doctors and nurses quarters

l Peterside Community Health Centre

l Abalamabie Town Hall

l Finima Women Association Bakery

l Okposi Community Health Centre staff quarters

l Ubio Community Health Centre staff quarters

l Ebogoro Community Health Centre staff quarters

l Installation of three (500 KVA) transformers and building of

generator houses in Bakana

l Science laboratory at Community Secondary School, Ogbo

l Science laboratory at Community Secondary School,

Ubeta

l Odiemerenyi – external fencing off of four borrow pits.

The following projects are currently on-going:

l Bonny Water Reticulation Project

l Omoku cold room

l Ekpena and Ohali-Usomini Model Primary School Project

l Ubeta road drainage

HEALTH

Mass Deworming Exercise

Because of growing concerns over the surge of intestinal worm

infection, NLNG went into a partnership with Glaxo SmithKline

and Rivers State Ministry of Health aimed at abating the rate

of infection and associated health and educational problems

among children within the communities. This resulted in a mass

deworming exercise targeted at school-age children (6-15

years). In 2013, 80,000 children were dewormed. 2,399

teachers were trained to administer the drugs and provide

health education messages to the children in accordance to

World Health Organisation's guide on deworming. 272 public

and private primary and junior secondary schools in Bonny

and the Gas Transmission System (GTS) communities

participated in the exercise.

Roll Back Malaria Campaign

In support of the programme launched by both the Federal and

Rivers State governments to roll back malaria through improved

sanitation habits and use of insecticide treated bed nets,

NLNG launched the Roll Back Malaria Campaign in all its host

local government areas in Rivers State.


In 2014, during the occasion of World Malaria Day, a total of

10,000 pieces of Rapid Diagnostic Test (RDT) Kits for malaria

diagnosis were donated to Rivers State Ministry of Health as

contribution towards the World Malaria Day Exercise in the

state. The objective is to support government's effort at health

care delivery particularly in our host communities – Bonny and

GTS communities.

Similarly, 2000 Hepatitis B and C test kits were also

distributed in Bonny Local Government Area.


EDUCATION

Scholarship

As previously mentioned, education and human capital

development are special focus areas for NLNG. Consequently,

the company awards scholarships yearly to different categories

of students. NLNG has a three-tiered scholarship programme

as outlined below.

NLNG Post Primary Scholarship

The scheme aims at supporting high performing basic six

pupils in company's host communities and oil-producing states

to access post primary education in select secondary schools

in Nigeria.

The scheme kicked off in 2012 with 28 beneficiaries, and has

grown to a total of 116 beneficiaries by 2014.

Prospective pupils are admitted into the scheme based on

excellent performance in the National Examinations Council's

(NECO) annual common entrance examinations.

NLNG Undergraduate Scholarship

This was founded as a critical component of education

intervention programme for our host communities in 1998 and

later opened up to the rest of Nigeria in 2003.

A total of 2,700 undergraduates from various universities in

Nigeria have benefited from the scholarship scheme with a

spend of over N600 million. The introduction of online

application and use of social media (Facebook) for information

dissemination in 2012 made the selection process more

efficient and cost effective, and increased awareness. The

value of the scholarship has been reviewed upward from

N100, 000 to N300, 000 per awardee for an academic year

and it runs throughout the duration of the student's course. 100

new beneficiaries were added to the scheme in 2014.

NLNG Overseas Post Graduate Scholarship

This scheme was launched in October 2012 and is being

managed by the British Council. The first 10 beneficiaries left

in 2013 to the United Kingdom for their studies. The

scholarship is valued at between N9 million and N11 million,

depending on the course, and is tenable for programmes in

top academic institutions in the UK. Courses covered by this

scheme include Environmental Studies, Engineering,

Management, Accountancy, Economics, Information

Technology, Geology, Banking, Law and Medicine.

The first set of beneficiaries have completed their studies and

returned to Nigeria. The second set of 13 beneficiaries

commenced their programmes in 2014 in various UK

universities.

Integrated Top-Up Scheme

Integrated Top-Up Scheme (I.T.S), formerly known as the Bonny

Education Endowment Fund (B.E.E.F), involves the payment of

a quarterly top-up allowance to teachers and non-academic

staff of government post-primary schools on Bonny Island and


health workers in Bonny General Hospital. Over the years,

more than N200 million has been spent on the scheme.

Currently, the scheme has a total of 350 beneficiaries.

NLNG / Rivers State Science Quiz Competition

In 2007, this competition was introduced in partnership with

the Rivers State Ministry of Education to encourage the study of

science subjects amongst students in the state. Target subjects

for the quiz include Mathematics, Biology, Physics, Chemistry

and Computer Science. It involves students from public

secondary schools in Rivers State.


Bonny Vocational Centre (BVC)

The Bonny Vocational Centre is an NLNG/Bonny Kingdom

partnership project designed to promote vocational and

entrepreneurial skills acquisition, development of technical

competencies and self-reliance in youths in Bonny community

in particular and Rivers State in general.

The Bonny Vocational Centre (BVC) has trained over a

thousand Nigerians in electrical installation, fabrication,

welding and pipe work, mechanical fitting, metal machining,

painting and decoration, civil construction and support

services, plumbing, timber and trowel vocation, catering and

hospitality, refrigeration and air condition maintenance, project

and procurement administration (for local contractors), general

business and administration.

The centre aspires to be a “Centre of Excellence” by producing

graduates capable of competing on the global stage. It is the

only City and Guilds accredited institution in Nigeria. Its

students, on successful completion of training are awarded an

International Vocational Certificate. It is also accredited by the

London Institute of Business to deliver the City & Guilds Institute

of Leadership & Management Certification; and recently by the

Nigerian National Board for Technical Education to operate as

an Innovation Enterprise Institution/Vocational Enterprise

Institution.

The centre has trained, graduated and awarded Advanced

Diploma Certificates of the City and Guilds of London Institute

to over 157 graduates over the past four years in various

technical and vocational fields of study.

The centre prides itself on its ability to help secure employment

for its graduates. At the moment, 107 BVC graduates are in full

time employment; 109 are in work placement (as interns) while

16 are in Samsung and Hyundai shipyards in Korea.

It also plans to partner with Rivers State Polytechnic, Bori, to

give opportunities to the centre's graduates who desire to

pursue Higher National Diploma (HND) programmes to be

integrated into the Nigerian curriculum.


ECONOMIC EMPOWERMENT

Youth Empowerment Scheme (YES)

The Youth Empowerment Scheme was launched in 2004 as a

sustainable development initiative aimed at youths (18-35

years old) within NLNG's host communities. YES is designed to

make the participating youths economically and socially

responsible and self-reliant through guided technical and

managerial development training.

Since its inception, over 700 youths from various host

communities have participated in the scheme and have been

supported in vocational modules namely catering and events

management, hairdressing and cosmetology, fashion and

design, photography and video production, woodwork and

furniture making, and welding and fabrication.

However, following low success rate of trainees under this

scheme, the company in 2014 reformed the implementation

strategy to focus more on equipping the youths with skills in the

relevant industries which will enable them to effectively

compete for jobs anywhere in the world. In this, company is

guided by the understanding that acquisition of vital skills that

can make one secure gainful employment is the bedrock of

financial independence or self-sustenance.

The Federal Government's robust automobile assembly

transformation programme helped point company's attention to

auto assembly as the choice industry for an initial pilot scheme.

Anambra Motor Manufacturing Company (ANAMCO) Enugu,

a leading car assembly plant in Nigeria, subsequently

emerged as the training centre of choice. 40 youths passed an

entrance examination for the scheme; 38 of them from Bonny,

Finima, Rumuji, Ubeta, Amadi Ama and OgbuNabali, on

November 22, 2014, were enrolled into the Auto

Electrical/Electronics and Auto Mechanics training

programme. Plans are already in progress to improve on the

scheme in 2015.


Nigeria LNG Agro Development Action (N-

AGENDA)

The Nigeria LNG Agro-Enterprise Development Action was

designed to enhance the revenue earning potential of rural

entrepreneurs through the provision of value added agricultural

and non-agricultural services – capacity building in farm

management techniques, exposure to improved varieties and

crops, field trips and linkage to farming institutes, and so on.

Also, support packs are periodically distributed to participating

farmers in the form of enhanced seedlings/stems, herbicides,

and fertilizer products.

In 2014, a total of 200 fish farmers drawn from various

communities were trained on new and emerging trends in

aqua culture farming and management.

Since 2014, emphases shifted to commercial farming and

linking the farmers to viable markets for their products.

Development agencies like International Fund for Agricultural

Development (IFAD), Market Development in Niger Delta

(MADE), Rivers State Sustainable Development Agency

(RSSDA) and Partnership in Niger Delta Development (PIND),

among others, as well as facilitators like International Institute

for Tropical Agriculture (IITA), Nigeria Agricultural Insurance

Corporation (NAIC) were engaged as partners and

coordinators in the task of empowering the subsistence farmer

to effectively transition to commercial farming.

Following collaboration with these bodies, commercial and

contract farming in cassava, poultry and fishing is billed to kick

off in 2015 in Ekpeye, Kalabari, Ogba, Okrika, ISB/OSB,

Abua, Emouha and Bonny kingdom.

Companies like Nigeria Starch Mills and Samvita have been

engaged to buy off the cassava from the farmers while

discussion is still on-going with TUNS Farms, a leading

supplier of poultry meats to KFC, Shoprite and Master Meat

for a contract for off-take of all the broilers to be produced

under a new poultry out-growers' scheme.

The partners will pull resources together to ensure that the

farmers achieve a high level of productivity. Demonstration

farms, where best practices in the process will be taught, are

proposed and this is aimed at improving the farmers'

knowledge and productivity. Seedlings – particularly cassava

stems – herbicides, fertilizers as well as extension services will

also be provided while the farmers will be immersed in

mechanized farming processes to ensure a complete break

from the traditional method. The focus is to use agriculture as

the new platform for employment and economic empowerment

in our host communities.


THE NIGERIA PRIZES FOR SCIENCE, LITERATURE AND LITERARY CRITICISMThe Nigeria Prize for Science, The Nigeria Prize for

Literature and The Prize for Literary Criticism,

sponsored by Nigeria LNG Limited, aim to bring Nigerian

scientists and authors to public attention and celebrate

excellence in scientific breakthroughs and literary

accomplishments in the nation.

NLNG believes that the science prize will provide leaders with

answers to crucial issues in development; improve the

standards of living and re-energise the scientific community to

seek solutions to national problems. With The Nigeria Prize for

Literature and The Nigeria Prize for Literary Criticism, it is

expected that the quest for a prestigious prize will improve the

quality of writing, editing, proof-reading, and publishing in the

country with far-reaching positive effect on print and broadcast

journalism.

The prizes are administered, on behalf of Nigeria LNG Limited,

by the Nigerian Academy of Science and the Advisory Board

for Literature made up of members of Nigerian Academy of

Letters (NAL) and the Association of Nigerian Authors (ANA).

Winners are announced in October, commemorating the first

export of LNG cargo by NLNG on October 9, 1999.

At inception in 2004, the monetary reward for The Nigeria

Prize for Literature and The Nigeria Prize for Science was

USD20, 000, which was increased in 2006 to USD30, 000.

In 2008, it was again upped to USD50,000. In 2011, yet

another significant change in the administration led to the

increment of the monetary reward to USD100, 000 for each of

the prizes.

In 2004, Professor Akpoveta Susu and his then doctoral

student (now doctor) Kingsley Abhulimen, both of the University

of Lagos, won the maiden edition of the science prize. They

won based on their work Real-Time Computer Assisted Leak

Detection/Location Reporting and Inventory Loss Monitoring

System which was described by the judges as an outstanding

contribution to research in real-time leak detection in a network

of pipelines, or other flow systems, carrying liquids. That year,

there was no winner for the literature prize (Prose Fiction).

However, three authors, Bina Nengi-llagha, Omo Uwaifo and

Prof Akachi Adimora-Ezeigbo, received honourable mention for

their books: Condolences, Fattening House and House of

Symbols respectively.

In 2005, there was no winner for the science prize whilst joint

winners emerged for the literature prize which focused on

Poetry. Ezenwa Ohaeto and Gabriel Okara were rewarded for

their books Chants of a Minstrel and The Dreamer: His Vision

respectively. The third book on the final shortlist of three,


Naked Among These Hills by Promise Ogochukwu, got

honourable mention.

Professor Micheal Adikwu, in 2006, showed in his winning

work, Wound Healing Devices (Formulations) Containing Snail

Mucin, that snail mucins can play a key role in the

pharmaceutical industry as a drug delivery agent. On the final

shortlist of three for the literature prize were Emeka Egwuda's

Esoteric Dialogue, Prof. Femi Osofisan's Ajayi Crowther: The

Travails of a Legend and Dr. Ahmed Yerima's Hard Ground.

Dr Ahmed Yerima claimed the prize in literature (drama) for his

book Hard Ground.

In 2007, as in 2005, there was no winner for the science prize

and joint winners emerged for the children's literature.

Professor Akachi Adimora-Ezeigbo and Mabel Segun emerged

joint winners with their books, My Cousin Sammy and

Readers' Theatre: Twelve Plays for Young People respectively.

Uche Umez, the third writer on the final shortlist, got

honourable mention for his book, Sam and the Wallet.

Dr. Ebenezer Meshida emerged winner of the 2008 science

prize with his work Solution to Road Pavement Destabilisaion

by the Invention of 'Lateralite': A Stabilisation Flux for Fine

Grained Lateritic Soils which will make Nigerian roads durable

through the elimination of potholes and gullies. The literature

prize in 2008 returned to Prose Fiction. 149 entries were

received. The final shortlist consisted of only two books. Kaine

Agary won with her first book, Yellow Yellow. The other book

on the shortlist was Jude Dibia's Unbridled.

Professor Andrew Nok won the science prize in 2009 for his

ground-breaking discovery of the gene responsible for the

creation of Sialidase (SD), an enzyme which causes sleeping

sickness (Trypanosomiasis). No winner emerged for the

literature prize which focused on poetry. Of the 161 entries

received, the following made it to the final shortlist of nine:

Lindsay Barrett's A Memory of Rivers, Omo Uwaifo's Litany, G

'Ebinyo Ogbowei's Song of a Dying River, Ademola Dasylva's

Songs of Odamolugbe, Musa Idris Okpanachi's Eaters of the

Living, Odoh Okonyedo”s From a Poet to Its Creator, Nengi

Ilagha's January Gestures, Hyginus Ekwuazi's Love Apart and

Ahmed Maiwada's Fossils.

The decision of the judges not to award the literature prize

precipitated significant changes in its administration. The ‘no

winner’ verdict attracted reactions from the Nigerian literary

community worldwide. Rising to the occasion as a truly

listening company, Nigeria LNG Limited convened a

stakeholders' engagement forum to examine and improve the

prize administration protocols. Consequently, the prize was

opened up to Nigerians everywhere in the world and the

names of the judges, hitherto kept secret, were made public.

The Nigeria Prize for Literature has since grown to be Africa's

most prestigious reward for literary excellence and one of the

richest literary prizes in the world.

Professor Akahehomen O. Akii Ibhadode was crowned winner


of the science prize in 2010 for his work on the development

of a new method in Die Design. That year, the prize continued

its circle with drama as the genre in focus. 93 entries were

received. The Killing Swamp by Adinoyi-Ojo Onukaba, Little

Drops . . . by Ahmed Yerima and Cemetery Road by

Irobi Esiaba made it to the final shortlist of three. The literature

prize got its first post-humous winner, Dr Esiaba Irobi, who won

the prize with his play Cemetery Road. He passed away

shortly after submitting his work for the competition.

In 2011, Adeleke Adeyemi, emerged winner of the literature

prize. Writing with the pen name, Mai Nasara, Mr. Adeyemi

won with his book The Missing Clock in the children's literature

category, the genre in spotlight that year. The judges described

the book as one that celebrates "ingenuity, hard work and

sparkles in its prose." The other books on the final shortlist of

three included: Eno's Story by Ayodele Olofintuade and The

Great Fall by Chinyere Obi-Obasi. 126 entries were received.

There was no winner for science that year.

In 2012, prose fiction was back in the spotlight for the

literature prize. Chika Unigwe beat 213 authors to the prize

with her book On Black Sisters' Street. She became the second

foreign based author to win the prize. Only a Canvas by

Olusola Olugbesan and Onaedo: The Blacksmith's Daughter

by Ngozi Achebe shared the final shortlist of three with

Unigwe's On Black Sisters' Street.

No winner emerged for science in 2012. However, a

stakeholder engagement session was organised by NLNG in

partnership with the Federal Ministry of Science and the

Federal Ministry of Education in Abuja. At the moment, the

science prize is undergoing review with the aim to re-position it

as the award of choice among scientists. A prize for literary

criticism was instituted by Nigeria LNG Limited to complement

the existing prize for literature.

2013 literature competition focused on poetry. From a total of

201 submissions, The Sahara Testaments by Tade Ipadeola,

Through the Window of a Sandcastle by Amu Nnadi and

Wild Letters by Promise Ogochukwu made the final shortlist of

three. Tade Ipadeola's The Sahara Testaments emerged the

winning entry. No science competition was organised in 2013

and in 2014.

The Nigeria Prize for Literary Criticism was introduced to

complement The Nigeria Prize for Literature.It is worth

N1,000,000 in prize money. Although it is open to literary

critics from all over the world, special consideration is given to

critical essays on new writing in Nigerian literature. There was

no winner for the prize in 2013.

The literature prize in 2014 focused on drama. 124 entries

were received. The initial shortlist of 11 consisted of Pandora's

Box by Ade Solanke, A Plague of Gadflies by Paul Emema,

Akon by Arnold Udoka, Iredi War by Sam Ukala, No Fault of

Mine by Ruth O Momodu, Oduduwa, King of the Edo's by

Jude Idada, Alekwu Night Dance by Friday John Abba, Under


a Darkling Sky by Isaac O Ogezi, Cantankerous Passengers

by Ogbe Patrick Adaofuyi, Our Wife Forever by Julie Okoh,

Maybe Tomorrow by Soji Cole. Oduduwa, King of the Edo's

by Jude Idada, Alekwu Night Dance by Friday John Abba and

Iredi War by Sam Ukala made the final shortlist of three.

Professor Sam Ukala's Iredi War emerged winner. Prof. Isidore

Diala won the literary criticism award with his submission

“Colonial Mimicry and Postcolonial Re-membering in Isidore

Okpewho's Call Me by My Rightful Name”. Seven critical

essays contended for this prize.


facts & figures on nlng 2015

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