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NLNG Restates Commitment To Local Content, In-Country LPG Supply

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Olushola Okunlade Writes

Nigeria LNG Limited (NLNG) has stated that it is committed to ensuring Nigerians benefit maximally from all its operations by going beyond mere compliance with Nigerian Content targets as set out in the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010.

NLNG’s Managing Director/Chief Executive Officer, Dr. Philip Mshelbila, made the statement recently while leading a delegation on a courtesy visit to the Executive Secretary (ES) of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, at the regulator’s head office in Yenagoa, Bayelsa State.

Philip said NLNG considered Nigerian Content a core part of its strategy in line with its corporate vision of being a globally competitive LNG company helping to build a better Nigeria’. He commended the NCDMB for the successful and historic relationship between the regulator and the company, which emphasized joint value creation, citing the unique Service Level Agreement (SLA) between NLNG and NCDMB as a classic example of the Board enabling business. He also appreciated the Board for the collaboration, which led to the smooth take-off of the Train 7 project, which recently recorded seven million safe man-hours without a Lost-Time injury incident.

Philip mentioned that NLNG remained committed to 100% in-country supply of its liquefied petroleum gas (LPG) volumes and stressed that, within the context of the global energy transition, support of regulators like the NCDMB would be critical in ensuring access, availability, and affordability of energy for domestic consumption. He proposed the formation of an NLNG-NCDMB Technical Working Group, which would meet periodically to discuss and resolve such strategic, and other operational issues.

In response, the Executive Secretary of NCDMB congratulated NLNG for a smooth and successful leadership transition while maintaining national pride of being led by a 100% Nigerian senior management team.

He assured that the regulator would continue to work with NLNG to deliver on its Nigerian Content commitments in its Train 7 Project to positively impact local manufacturing capacity and employment levels in the country.

He encouraged the company to begin preparations for Train 8 and also endorsed the idea of an exchange program of staff between both organizations to deepen knowledge of each other’s inner workings for better partnership and business efficiency.

Wabote said the Board would continue to adhere to its Business-to-Business Service Level Agreement (SLA), as it remained the first in the industry and had set a standard for shortening the contracting cycle and improving compliance with the NOGICD Act. He encouraged NLNG to plug into ongoing efforts by NCDMB to widen LPG distribution and storage across multiple zones of the country.

NLNG delegation included NLNG’s Deputy Managing Director, Mr. Olalekan Ogunleye; General Manager, External Relations and Sustainable Development, Mr. Andy Odeh; General Manager, Human Resources, Terhemba Makeri; Manager, Contracts and Procurement Management, Abdul Umar; Manager, Nigerian Content Development, Engr. Dagogo Buowari; Manager, Community Development, Charles Epelle, among other NLNG staff.

Oil & Gas

Shell Starts Production At Vito In US Gulf Of Mexico

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Shell Starts Production At Vito In US Gulf Of Mexico

Olushola Okunlade Writes

Shell Offshore Inc., a subsidiary of Shell plc (Shell), announced that production has started at the Shell-operated Vito floating production facility in the US Gulf of Mexico (GoM). With an estimated peak production of 100,000 barrels of oil equivalent per day.

Vito is the company’s first deep-water platform in the GoM to employ a simplified, cost-efficient host design.

Vito is Shell’s 13ᵗʰ deep-water host in the Gulf of Mexico with estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.

Shell is the leading operator in the US Gulf of Mexico for oil and gas production. In addition to operations in Brazil and the US Gulf of Mexico, Shell’s deep-water portfolio includes Argentina Shales organization and frontier exploration opportunities in Mexico, Suriname, Sao Tome & Principe, Argentina, and Namibia.

“Vito is an excellent example of how we are approaching our projects to meet the energy demands of today and tomorrow, while remaining resilient as we work toward achieving net zero emissions by 2050,” said Zoe Yujnovich, Shell’s Upstream Director, adding, “Building on more than 40 years of deep-water expertise, projects like Vito enable us to generate greater value from the GoM, where our production has amongst the lowest greenhouse gas intensity in the world for producing oil.”

The Vito development is owned by Shell Offshore Inc. (63.11% operator) and Equinor (36.89%). In 2015, the original host design was rescoped and simplified, resulting in a reduction of approximately 80% in CO₂ emissions over the lifetime of the facility as well as a cost reduction of more than 70% from the original host concept.

Vito also serves as the design standard for our Whale project that will feature a 99% replication of the Vito hull and 80% of Vito’s topsides.

Shell’s Powering Progress strategy to thrive through the energy transition includes increasing investment in lower-carbon energy solutions while continuing to pursue the most energy-efficient and highest-return Upstream investments.

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NLNG’s Bonny Plant Still In Operation

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NLNG Refutes Online Publication By Nigerian Daily

Olushola Okunlade Writes

Nigeria LNG Limited (NLNG) confirms that operations at its plant on Bonny Island are still active despite a Force Majeure declared in October 2022 and feed gas supply challenges.

The plant continues to produce LNG and LPG commensurate to the feed gas it receives from its upstream gas suppliers.

In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector.

The company is closely monitoring the resolution of supply challenges by all relevant parties.

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Shell, Milieudefensie To Pay €15 Million Compensation To N’Delta Farmers Over Oil Spills

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Industry Regulator Applauds Shell For Investing In Nigerian Gas Infrastructure

SHELL AND MILIEUDEFENSIE SETTLE LONG-RUNNING CASE OVER OIL SPILLS IN NIGERIA

Olushola Okunlade Writes

Following the judgments of the Court of Appeal of The Hague on 29 January 2021, Shell and Milieudefensie have negotiated a settlement for the benefit of the communities of Oruma, Goi, and Ikot Ada Udo in Nigeria, impacted by four oil spills that occurred between 2004 and 2007.

The settlement is on a no-admission of liability basis, and settles all claims and ends all pending litigation related to the spills. Under the settlement, The Shell Petroleum Development Company of Nigeria Ltd (SPDC), as operator of the SPDC joint venture, will pay an amount of EUR 15 million for the benefit of the communities and the individual claimants.

An independent expert has confirmed that SPDC, as operator of the SPDC joint venture, has installed a leak detection system on the 20” lines that form the KCTL Pipeline in compliance with the judgment of the Court of Appeal of The Hague, the Netherlands.

The parties agree that remediation has been completed and certified by relevant regulatory agencies in Nigeria in accordance with Nigerian law. The parties agree this also follows from the judgments of the Court of Appeal.

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