By Udeme Akpan

There are strong indications that the Final Investment Decision, FID, on Nigeria’s first floating liquefied natural gas, FLNG project would be taken before the end of 2023.

Already, the front-end engineering design, FEED, is ongoing in Lagos, Yokohama and Paris with JGC, Technic and indigenous companies acting as consultants.

The group managing director, UTM Offshore Limited, promoter of the project, Mr. Julius Ronne, who confirmed the development in an interview with Vanguard at the just-concluded Nigeria Oil and Gas, NOG conference in Abuja, said: “This stage is very important, especially as it will enable us to have an idea about the project cost, prepare a full budget and work towards the FID. This is a process that cannot be skipped. We should be able to prepare different levels of estimates for consideration.

 “We already have gotten the first outcome, which is level four.  The next outcome will be level three.  The final outcome will be level two. Simultaneously, the Engineering, Procurement and Construction, EPC draft contract is being worked on with our lawyer, Templers, and our international counsel, White and Case.

 “This is an international transaction and we do our very best to be on top of the project from conception to delivery.  UTM is leaving no stone unturned in terms of the quality of companies that will deliver this project.”

Front-End Engineering Design

Based on ongoing works, he said: “We are looking forward to completing the FEED towards the end of October 2023. In November 2023, we should start work on the Open Book Estimate, OBE, for the EPC contract.

 “This kind of project has many intellectual property rights, which cannot be moved from one company to another, so we hope may end up in the EPC contract with JGC and Technic.  Once they finish that, in line with international best practice, they need to also do what we call OBE negotiation with us.

“In that aspect, we also brought in an international engineering company of the same status as JGC and Technic, which is KBR Consulting Limited of the UK to serve as our engineering consultant engineer because we don’t have the requisite experience to measure the deliverables from the outcome of the feed.

“We need to get a company that can ensure that whatever JGC and Technic are doing in terms of engineering is in conformity with the project schedule and expectation.”

Role of PIA

Commenting on motivation, he said: “We have been encouraged by Petroleum Industry Act, PIA, to proceed with the project. 

The government needs to have political will because implementation is about political will.  Political will is determined by the President or chief executive officers.