Nlng facts and figures 2014 part 2 by Nigeria LNG Limited

Facts & Figures on NLNG 2014

FINANCING The 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.

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 USD70 million short-term 'place holder' financing remaining in place. The incredible strength of character displayed 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.

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 Ships

The third party loans comprise 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

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

Facts & Figures on NLNG 2014

operations.

Bergesen d.y of Norway.

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:

BGT raised USD460 million in March 2003, to partly fund the construction of the vessels.

LNG Rivers & 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. 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. 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

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 for the six train plant approaches name-plate capacity and LNG is now delivered in more distant destinations in response to changing business opportunities. As

Facts & Figures on NLNG 2014

a result, additional shipping capacity has become necessary. Bonny Gas Transport has completed plans to acquire six new vessels which are currently being built and will be completed by 2016. Financing for the six vessels has been arranged in two programmes: a USD310 million six-year Additional Programme Debt (APD) and a USD1,100 million 12-year New Vessel Debt (NVD). The APD is additional indebtedness under 2006 vessel ďŹ nancing arrangement while the NVD is a fresh facility with several international commercial banks as lenders: the Korean Finance Corporation and Korean Export-Import Bank (KEXIM), supported by the Korean Trade Insurance Corporation (KSURE). The deals were signed off on March 26, 2013.

Facts & Figures on NLNG 2014

NIGERIAN CONTENT

achievable within its projects, contracts and procurement activities.

NLNG and Nigerian Content

The company's performance on Nigerian Content is monitored by a steering committee made up of senior management team of NLNG and also governed by a committee of NLNG Board of Directors. 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 have been enhanced.

Nigeria LNG Limited considers Nigerian Content â&#x20AC;&#x201C; a deliberate, conscientious use and development of Nigerian human and material resources and services â&#x20AC;&#x201C; an important feature of all its activities. In line with this position, all LNG trains are required to have approved Nigerian Content Plan as a prerequisite for taking Final Investment Decision (FID). This applies, too, to award of major contracts. All approved Nigerian Content Plans are aimed at attaining maximum achievable Nigerian Content deliverables in all 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

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.

Nigerian and Community Vendor Forums To further enhance our in-country sourcing of local companies, NLNG annually carries out a series of engagements which serve as a forum for continuous exposure of Nigerian companies to the needs of the oil and gas sector. This continues to serve as avenues for discovering Nigerian manufacturers and services providers. In 2013, 368 vendors attended the three-day event in Port Harcourt and Bonny. Some of the inspiring stories shared at the

Facts & Figures on NLNG 2014

event included those of Riviera Nigeria LNG Limited (a community-based company that grew from providing ancillary services to a community vendor providing construction/civil works on Bonny Island) and Trans Kontinental Services Limited (a small community-based company that now provides strategic procurement services to Nigeria LNG Limited).

Through the Bonny Vocational Centre (BVC), NLNG trains local contractors in various cost estimation and project management courses. Hundreds have been certiﬁed to London City and Guilds requirements. Annual vendor training sessions are also carried out in Bonny and Port Harcourt.

Shipping New relationships developed at these workshops include strategic partnerships between the more established Nigerian vendors and the local community vendors. Examples are Vikan Nigeria Enterprise and SJ Abed for Bonny Vocational Centre's catering contract. There are also other community contractors that are being guided by Julius Berger Nigeria Limited to handle various minor civil works and contracts. NLNG continues to conduct site and facilities assessments and evaluation of promising companies to ascertain potentials and capabilities for utilization of their services. Other channels through which NLNG interacts with vendors include our online registration system, our help desk hotline and, more recently, our Vendor Service Centre which was opened in Bonny in the third quarter of 2013.

Training and Skills Acquisition NLNG trained over 11,284 Nigerians during construction of its plant and it continues to train local craftsmen employed during plant shutdowns. This has signiﬁcantly increased the use of local technicians and artisans to more than 90%, with a corresponding reduction of expatriates.

Facts & Figures on NLNG 2014

The shipping arm of NLNG has, through an aggressive and deliberate Nigerianisation programme, trained an appreciable number of Nigerians to man its LNG carriers. Key and strategic positions in the shipping skills pool are now occupied by Nigerians. NLNG's deliberate manpower development strategy in this area has created various job opportunities. Worthy of note is the creation of the subsidiary, NLNG Ship Management Limited (NSML), to respond to the rapid changes and challenges in the maritime business and the scarcity of ship board personnel worldwide. It was set up to deliver on NLNG's strategic plan to have a shipping management service to develop and supply qualified and competent shipboard personnel on board its ships. From amongst its workforce of shipboard officers, Nigerianisation has produced six captains and four chief engineers, all of whom have now been deployed to NLNG Ship Management Services (NLNGSS) department. In addition five NLNG Secondees who completed their training under the training agreement with STASCo have been deployed to the NLNGSS team.

Another milestone achievement of NLNG's manpower strategy is the Ship Management Knowledge Transfer Agreement, otherwise known as SMKTA (and often pronounced 'smakta') signed between Nigeria LNG Limited and both Shell International Trading and Shipping Company Limited (STASCo) and Anglo Eastern Ship Management Ltd (AESML) on June 23, 2009. SMKTA provided a framework and timeline for skill transfer to enable Nigeria LNG Limited to manage its shipping assets as part of the Board-mandated 'Nigerianisation' process. Due to this process, 2011 saw the launch of operations of Nigeria LNG Ship Management Services (NLNG SS) and the handover of management of four vessels: LNG Cross River, LNG Rivers, LNG River Niger and LNG Bayelsa. The number of ships under management increased to 10 in 2013. NLNG also signed the “Secondee Training Agreement” and the “Memorandum of Understanding for a Scheme of Ship Management Knowledge Transfer” with the Anglo-Eastern Group (AESML), which offers the complete spectrum of ship and crew management and technical services including technical support, superintendence, procurement, accounting, insurance and agency services, on 15th June 2009 and 13th January 2011 respectively. As part of the training agreement, the ﬁrst batch of NLNG Secondees commenced their training with AESML in January 2010. The three secondees with AESML have now been deployed to the shipping skills pool having attained the position of Operations and Technical superintendents.

Another key initiative in shipping is the award to construct six new dual fuel diesel engine (DFDE) LNG vessels with Bonny Gas Transport (BGT), the wholly owned subsidiary of NLNG, which enhances the level of Nigerian ownership and shipping capacity in the ﬂeet through the government's holding in NLNG. Also included in this arrangement is the procurement of local goods and services in construction and aftersales services for these vessels. All Nigerian Content initiatives are geared towards supporting an enabling environment for the establishment of in-country maintenance facilities that NLNG may utilize.

Finance In 2013, NLNG Board approved USD 1 billion NLNG Local Vendors Financing Scheme (NLVFS) for vendors that are awarded service and supply contracts by Nigeria LNG Limited. The scheme offers vendors funding at extremely competitive rates. Venders are also not required to provide any collateral and are burdened with only modest capital contribution, with the banks given the assurance of domiciliation of payments with them. This scheme was launched on November 28th and th 29 2013 in Port Harcourt and Bonny respectively. (Also See Vendor Finance Scheme on page 29.)

Facts & Figures on NLNG 2014

Services and Procurement NLNG encourages full participation of Nigerian companies in its contracting and procurement processes. Examples of major awards made to Nigerian service providers include provision of towage and mooring services, aviation services and construction projects. While doing this, NLNG strives to maintain international standards on quality, cost, schedule and health, safety and environmental protection. This is done in the larger context of NLNG's policy on sustainable development. The underlisted are some of the indigenous companies which worked with, and beneﬁted from, NLNG Nigerian Content Policy implementation drive.

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 Lagos 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 Nigeria LNG Limited, following a nationwide assessment of pipe manufacturing companies, entered into a business relationship with Holborn Nigeria Limited for the manufacturing

of 12 inch (30mm) diameter HDPE pipe which had hitherto never been manufactured 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 long term effects of this groundbreaking production by Holborn are numerous. In the area of knowledge transfer, many Nigerians in the company have now acquired first-hand knowledge of fabrication of this size of pipes. Various government projects which use these pipes can purchase locally instead of importing, thereby significantly reducing costs.

CAKASA and Waste Pipes and Drainages (WPD) In handling hydro jetting of heat exchangers, a major aspect of its maintenance activities, NLNG at inception engaged the services of a foreign Company, BJ Services. However, by the expiration of the contract in 2006, NLNG had identiﬁed an indigenous company CAKASA Nigeria limited as possessing potentials for carrying out this maintenance service under a guided knowledge transfer plan. NLNG also put in place a capacity development process by engaging another indigenous company, Waste Pipes and Drainages Nigeria Limited (WPD) in minor works under supervision of technically competent NLNG personnel. Waste Pipes and Drainages Nigeria Limited has since acquired their own equipment to replace leased ones and currently stands as a viable alternative to CAKASA Ltd. The local capacity development achieved in this specialist area is further being explored.

Facts & Figures on NLNG 2014

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. 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.

Dorman Long Nigeria Limited (and Nigerdock Nigeria PLC) NLNG began a relationship with Dorman Long during its Train 3 (Expansion Project) construction after its Nigerian Content survey had identiﬁed some capability for fabrication in Dorman Long Ltd. NLNG consequently brokered a merger between Dorman Long and Robey Oil & Gas Limited, another company identiﬁed with some capability for engineering services. Robey Dorman Long Ltd. (RDL) subsequently delivered on an NLNG order for about 1067 tonnes of steel structures and 160 tonnes of low-pressure carbon steel vessels for Train 3 (Expansion Project). The merger was short-lived, but Dorman Long became better

Facts & Figures on NLNG 2014

positioned and was awarded a contract in Train 6 Project for the fabrication of vessels in excess of 200 tonnes. NLNG, by this order, supported the construction and installation of a large heat treatment furnace at the Dorman Long facility, a major technological leap that aids the continued development and expansion of fabrication activities in Nigeria. Dorman Long and Nigerdock were also awarded contracts for the construction of total tonnage of 1038 (Dorman Long - 500 tonnes; Nigerdock - 538 tonnes) galvanized structural steel works. This was achieved after NLNG's involvement in the enhancement of their galvanization capability.

Nexans Kabelmetal NLNG's relationship with Nexans Kabelmetal also dates back to Train 3. Nexans Kabelmetal was encouraged to increase the capacity for production of cables through an order to supply to Train 3. This necessitated their acquisition of new production equipment. Nexans Kabelmetal has now fully expanded into manufacturing of instrumentation cables, medium and high voltage cables, as well as PVC for NLNG's needs.

Nigerian Foundries NLNG worked with Nigerian Foundries Limited to improve their processes for the manufacture of trench gratings and manhole covers, for supply to NLNG. Interestingly, the gratings made from cast iron products arose from an adapted speciﬁcation made by NLNG speciﬁcally to meet an in-country capability. Over 1,260 gratings and castings were delivered to Train 6.

As in the case of Dorman Long and Nexans Kabelmetal, NLNG's order for gratings from Nigerian Foundries, besides improving the company's processes, have also aided the expansion of its facility and product base. Nigerian Foundries Limited has now built another facility for manufacturing loading arms counterweights, one of the materials needed at NLNG's loading facility. It has also diversiďŹ ed into production of sacriďŹ cial anodes for cathodic protection as well as ship anchors.

Facts & Figures on NLNG 2014

2014 Facts & Figures on NLNG

Facts & Figures on NLNG 2014

THE ENVIRONMENT NLNG 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 of other persons, and to give proper regard to the sustainable management of the environment. In line with this, NLNG plans its work to: n Prevent injuries and ill-health to workers and surrounding communities; n Prevent damage to assets and minimise any negative impact on the environment; n Avoid or eliminate future liabilities; n Meet requirements for demonstrable due diligence. At the inception of the NLNG Project, there was a major focus on carrying out an Environmental Impact Assessment (EIA) for the project area. Between 1987 and 2002, an intensive environmental assessment was carried out and the Environmental Impact Assessment (EIA) reports prepared for various phases of the plant construction. The EIA reports for the Base Project (Trains 1 & 2) and the Gas Transmission System 1 (GTS/1) were reviewed and certiﬁed by the then national environmental regulatory body, the Federal Environmental Protection Agency (FEPA). Following approval of

Facts & Figures on NLNG 2014

the final EIA report, NLNG became the first major project in Nigeria to complete full EIA process before commencement of business. An important element of the EIA process is to identify and mitigate potential adverse impacts of NLNG's operations. For the Base Project, a number of potential adverse impacts were identified and mitigation measures taken. Additionally, similar EIA studies have been conducted for subsequent projects (NLNG Expansion, NLNG Plus, Train 6, Train 7 Plus and Bonny River Terminal Airstrip). The reports for these studies were approved by the Nigerian environmental regulatory body, the Federal Ministry of Environment. To ensure compliance with EIA requirements, an Environmental Social and Health Management Plan was set up with the major objective of ensuring completion of recommended mitigation measures, compliance with legislation and NLNG HSE policy. The plan is regularly updated and its implementation evaluated by regulators during impact mitigation monitoring exercises. In pursuance of continuous improvement and to foster an ideal HSE culture in its organisation, NLNG has conducted regular monitoring of its general HSE performance. A summary of NLNG HSE statistics from 2007 to 2012 is as shown in the figures on the next page.

Facts & Figures on NLNG 2014

Discharges to Water To ensure compliance with regulatory requirements, NLNG has adopted the principle of abatement through minimisation at source of aqueous discharges that have the potential of causing adverse impact on the environment. A dedicated efﬂuent treatment plant was established to further treat discharges which may arise from industrial activities in order to ensure compliance.

being 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 generation and continuously increase the percentage of wastes recycled and/or reused when compared to the fraction disposed or stored on-site.

Periodically, an assessment of the recipient water body is carried out 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,

Facts & Figures on NLNG 2014

Waste Hierarchy

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, nonhazardous solid wastes are temporarily stored on the plant site before being transported to disposal and treatment facilities off the Island duly accredited by Federal Ministry of Environment and environmental sanitation authorities where such waste streams are further recycled or reused as preferred options of disposal.

Hazardous Waste

Noise Measurements

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.

Noise level measurements within the plant fence and in nearby communities are carried out regularly to conﬁrm that the plant meets regulatory requirements as well as the Project Noise Design Speciﬁcations. This process ensures that noise from NLNG plant does not impact the surrounding community adversely.

Other waste management initiatives currently pursued by NLNG particularly for hazardous waste include the use of buyback and recovery schemes with original manufacturers.

Typical Results for Noise Measurements carried out at Plant Fence

Environmental Performance

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 prints, stack emissions and ambient air quality monitoring are routinely carried out at identiﬁed areas within the plant fence and surrounding communities respectively 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 in the way we manage our waste, efﬂuents and emissions.

Facts & Figures on NLNG 2014

Typical Waste Management Options for some Solid Wastes in NLNG facilities

Facts & Figures on NLNG 2014

Biodiversity and Nature Conservation Nigeria LNG 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 in 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 buyin and the sustainability of the initiative.

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 crocodiles, snakes and alligators. In pursuing its environmental objectives, the company considers public consultation and enlightenment fundamental to fostering good relationships with its neighbours. It has initiated forest protection and biodiversity conservation enlightenment campaigns in accordance with recommended EIA mitigation measures. The company has partnered with community-based organisations such as the Bonny Environmental Consultants' Committee (BECC) and such non-governmental organisations such as Niger Delta Wetlands Centre and Nigerian Conservation Foundation in outreach programs to schools, organisations and settlements within its areas of operations.

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

Facts & Figures on NLNG 2014

COMMUNITY RELATIONS AND DEVELOPMENT Nigeria 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. But the Kingdom is yet to convert the advantage of this signiﬁcant infrastructural development to real growth. A Pan Bonny Sustainable Development Conference was therefore 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.

Facts & Figures on NLNG 2014

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

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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.

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 contribution ratio of 50:30:20 respectively. BUC has consistently provided power to residents of Bonny Island with an average availability of over 95%. A total of 10,416 homes are powered through the BUC grid, with an operational prepayment system. In 2012, a four hundred thousand (400,000) litre capacity overhead water storage tank was commissioned. The new storage tank was funded by JIC to replace the existing overhead storage tank at the BUC Bonny Water Treatment Plant which was heavily corroded.

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 â&#x20AC;&#x153;ownershipâ&#x20AC;? 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, employ family members to execute jobs which cover: n Pipeline Right of Way surveillance and inspection n Asset maintenance: painting of signposts and markers, grass cutting, etc. To encourage the contractors, an award ceremony was held in 2012 to recognise outstanding ROW contractors. This award has now been instituted as an annual event. In 2013, prizes were awarded for Best HSEQ Compliance and Timely Submission of Reports, among others.

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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 of immunization campaigns, renovation of schools and town halls, sinking of water boreholes, and provision of school desks and writing materials in host and pipeline communities.

The following projects were completed in 2012: Peterside Community Health Centre n Abalamabie Town Hall n Finima Women Association Bakery n Okposi Community Health Centre Staff Quarters n Ubio Community Health Centre Staff Quarters n Ebogoro Community Health Centre Staff Quarters n Installation of 3 no. (500Kva) transformers and building of generator houses in Bakana n Science laboratory at Community Secondary School, Ogbo n Science laboratory at Community Secondary School, Ubeta n

The following projects were completed in 2013: Omokwa Town Hall Project n Rumuji Road n

The following projects commenced in 2013: n Bonny Water Reticulation Project n Omoku Cold Room n Ekpena and Ohali-Usomini Model Primary School Project n Amadi-ama Doctors and Nurses Quarters n Ubeta Road Drainage

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Health

Ministry of Health as contribution towards the World Malaria Day Exercise in the state.

Mass Deworming Exercise

HIV/AIDS

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 to look 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 this exercise.

As a responsible corporate citizen, NLNG has put in place several programmes to check the spread of the HIV/AIDS virus in Bonny. A signiďŹ cant pointer to this effort is the launch of the Ibanise HIV/AIDS Initiative which is an outďŹ t established by the JIC in 2006 to respond to the growing prevalence of HIV/AIDS in Bonny kingdom. In 2013, the initiative accomplished the following: n

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 2013, during the occasion of World Malaria Day, a total of 3,500 Long Lasting Insecticide Treated Nets (LLIN) were distributed in Bonny while 6,000 pieces of Rapid Diagnostic Test (RDT) Kits for malaria diagnosis were given to Rivers State

HIV Counselling and Testing: Held 12 Mobile HIV Counselling & Testing outreaches in 28 locations in Bonny. 13,105 persons were counselled & tested for HIV with 554 testing positive. Prevention, Stigma Reduction and Sensitisation: 22,732 persons were reached with prevention messages during special events and ad hoc activities, against a target of 15,000 persons. Malaria Awareness & Prevention Programmes: Carried out Malaria sensitization and Malaria Parasite Testing & treatment in the general population. 6,317 persons tested for malaria parasite with 1,485 testing positive. Tuberculosis Awareness Campaigns: Sensitization on TB

prevention and referral. 4,861 persons reached with n

prevention message. Care and Support for people infected and affected with

Facts & Figures on NLNG 2014

HIV: Held 42 Support Group Meetings for persons living with HIV/AIDS (PLWHA) in four centres. 169 PLHIVs attended against a target of enlisting 150 PLHIVs Treatment of HIV/AIDS and Related Health Conditions: Facilitated treatment of 105 persons living with HIV/AIDS for HIV/AIDS related health conditions. Sensitization/Training of naval personnel in Bonny: 48

Facts & Figures on NLNG 2014

naval personnel were reached. Peer Education: 371 youths were reached in â&#x20AC;&#x153;In-School Youthsâ&#x20AC;? training programme. Community outreach programmes: Collaborated with Bonny Nurses Forum to provide Malaria and HIV Counselling and Testing Services during their free medical outreach for the elderly in Bonny.

Facts & Figures on NLNG 2014

Education Scholarship As already mentioned elsewhere in this book, 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 four-tiered scholarship programme as outlined below.

Nigeria have benefited from the scholarship scheme with over N500 million spent on it. 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, increased awareness and minimized rumours. 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 course. 100 new beneficiaries were added to the scheme in 2013.

NLNG Post Primary Scholarship The scheme aims at supporting very high performing but underprivileged basic six pupils in host communities' public schools to access top-of-the-range education in top-rate secondary schools in Nigeria. The scheme kicked off in 2012 with 28 beneﬁciaries in two partner schools, Brookstone Secondary School, Igwuruta and Charles Dale Memorial International School, Eneka, Port Harcourt. Other partner schools are MacDonald Memorial International Institute, Igwuruta, Port Harcourt, Dowen College Lekki, Lagos and Loyola Jesuit College, Abuja. Prospective pupils will have to pass through a merit based selection process independently conducted by the Aptitude Test Department (ATD) of WAEC to qualify for the scholarship. Fiftyeight beneﬁciaries were on the scheme as at December, 2013.

NLNG Undergraduate Scholarship A total of 2,600 undergraduates from various universities in

Facts & Figures on NLNG 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 N6 million and N9 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.

NLNG Cadet Scholarship The scholarship targets young school leavers from NLNG’s host communities who are interested in careers in the maritime industry. The scholarship covers tuition for the National Diploma programme at Maritime Academy of Nigeria, Oron. NLNG has sponsored 49 persons from the host communities as at December, 2013.

Facts & Figures on NLNG 2014

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 N150 million has been spent on the scheme. Currently, the scheme has a total of 270 beneﬁciaries.

NLNG /Rivers State Science Quiz Competition 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.

vocation, catering and hospitality, business and administration. The centre has also trained, graduated and awarded Advanced Diploma Certiﬁcates of the City and Guilds of London Institute to 157 graduates over the past three years in various technical and vocational ﬁelds of study. The centre is aiming for possible approval or accreditation of its courses by National Board for Technical Education (NBTE). It also plans a partnership with Rivers State Polytechnic, Bori, to give opportunities to the centre's graduates who want to pursue Higher National Diploma (HND) programmes.

Bonny Vocational Centre 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 decorating, plumbing, timber and trowel

Facts & Figures on NLNG 2014

Economic Empowerment Micro-Finance Scheme The N500 million NLNG Micro Credit Scheme was created in 2000 as a sustainable development initiative to reduce poverty and create new employment opportunities in the host communities by making micro loans available to, and building capacity of, entrepreneurs. The scheme provides economic empowerment through credit ﬁnancing to drive entrepreneurship. As at December 2013, over 75% of this loan had been repaid by the cooperatives. In 2012, N114, 850, 000 was disbursed to 77 cooperative groups from NLNG’s host communities. These loans are expected to support the development of small and medium enterprises.

Village Savings and Loan Associations The Village Savings and Loan Associations (VSL) is one of the ﬁnance-related community development interventions implemented across NLNG’s host communities. The VSL mobilises savings among participating members, ensuring that such savings are being utilised optimally to meet business needs. It was introduced in 2008. It involves facilitating the formation of Accumulated Savings & Credit Associations, ASCAs, (groups of 10 to 18 individuals who save together as a unit), building their capacity on group cohesion, savings mobilisation, credit utilisation, and exposing them to other

modules of the VSL framework. This is followed by an annual cycle of continuous monitoring, mentoring and re-strategising to enhance the development cycle and ensure that the set objectives are achieved. In 2013, 358 ASCAs saved over N121 million.

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. In 2013, 99 beneﬁciaries participated in the programme and graduated from the scheme in a ceremony held at The Adolescent Project (TAP) Centre, Iriebe, Port Harcourt.

Nigeria LNG Agro Development Action (NAGENDA) The Nigeria LNG Agro-Enterprise Development was designed to enhance the revenue earning potential of rural entrepreneurs

Facts & Figures on NLNG 2014

through the provision of value added agricultural and non-agricultural services â&#x20AC;&#x201C; capacity building in farm management techniques, exposure to improved varieties and crops, ďŹ eld trips and linkage to farming institutes, and so on. In 2013, a total of 152 farmers drawn from various communities were trained on new and emerging trends in farming systems/technology and agribusiness at Songhai Rivers, Bunu Tai. Also, during the year, support packs were distributed to 300 farmers.

Facts & Figures on NLNG 2014

THE NIGERIA PRIZES FOR SCIENCE AND LITERATURE The Nigeria Prize for Science and The Nigeria Prize for Literature are sponsored by Nigeria LNG Limited. The prizes are aimed at bringing Nigerian scientists and authors to public attention and celebrating 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, 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 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-Ilagha, Omo Uwaifo and Prof Akachi Adimora-Ezeigbo, received honourable mention for their efforts. 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. 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. Dr Ahmed Yerima claimed the prize in literature (drama) for his book Hard Ground.

Facts & Figures on NLNG 2014

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.

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. It is ranked among the world's top 100 in prize money.

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. Kaine Agary won with her ﬁrst book, Yellow Yellow.

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. The literature prize got its ﬁrst post-humous winner, Dr Esiaba Irobi, who won the prize with his play Cemetery Road. He died after submitting his work for the competition.

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.

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.” There was no winner for science that year.

The decision of the judges not to award the literature prize in 2009 precipitated signiﬁcant changes in its administration. Nine poets were shortlisted for the literature prize, but by the time the judges were done with their work that year, no winner emerged. This 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

Facts & Figures on NLNG 2014

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. 2013 literature competition focused on poetry. From a total of 201 submissions, Tade Ipadeola's The Sahara Testaments emerged the winning entry.

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 reviews with the aim to re-position it as the award of choice among scientists.

Facts & Figures on NLNG 2014