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OIL AND GAS FREE ZONES AUTHORITY GREENFIELDS’ INVESTMENT OPPORTUNITIES

Umana Okon Umana MD/CEO

OIL AND GAS FREE ZONES AUTHORITY

ABUJA OFFICE 4 Pope John Paul II Street, Off Gana Street, Maitama, FCT Abuja, Nigeria

ONNE OFFICE Marble House, Federal Ocean Terminal (FOT), Onne Port Complex, Rivers State, Nigeria

CONTACT US Website: www.fzgil.org Email: office@fzgil.org Phone: +234 (0)809 795 8000

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Investing in Nigeria’s Oil & Gas Greenfields 2


Outline: • • • •

Nigeria’s oil & gas potential at a glance About the Oil & Gas Free Zones Authority (OGFZA) Greenfields under OGFZA Invitation to partner with the Oil & Gas Free Zones Authority • Opportunities for partnership – Brass Oil & Gas City and Ikpokiri Island • Government Incentives and requirements for investing in Oil & Gas Free Zones

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Nigeria’s Oil & Gas Potential At A Glance GROWING ECONOMY 8 7

GROWTH RATE ( % GDP)

6 5 4 3

PROJECTED REAL GDP GROWTH

2 1 0 2015.5 -1 -2

2016

2016.5

2017

2017.5

2018

2018.5

2019

2019.5

2020

2020.5

YEAR

• The Nigeria Economic Recovery & Growth Plan (2017- 2020) projects an annual growth rate of 4.8% in 2018. • In Q1 2018, Nigeria’s economy grew by 1.95% (year-on-year). • Real growth of the oil sector was 14.77% (year – on - year) .

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Nigeria’s Oil & Gas Potential At A Glance (cont.) Population: • With a population of more than 185 million, Nigeria is the most populous country in Africa (one in every six African is a Nigerian) - Nigeria is a large market. • It is the seventh most populous country in the world and 75% of the population is under the age of 30 (with 70% being 15+) – a vibrant labour force. Ease of Doing Business: • In 2017, the World Bank recorded a significant improvement in the ease of doing business in Nigeria, as it rose 24 points in the Ease of Doing Business index for 2018

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About the Oil & Gas Free Zones Authority (OGFZA) •  The Oil and Gas Free Zones Authority is the Apex Regulatory Authority established by the Oil & Gas Free Zones Act, No. 8 (section 51) of 29th March 1996 to regulate and manage Nigeria’s Oil & Gas Export Free Trade Zones. •  OGFZA licenses, supervises and coordinates the functions of the various enterprises that operate within the export Free Zones.

• We are also enabled by law to establish and coordinate the activities of the other government agencies such as customs, police, immigration and similar posts in the Export Free Zones. • We provide a One-Stop-Shop in the free zones, where all the critical agencies of government operate to enable faster and more efficient government service provision to the enterprises. •  Using our Special Purpose Vehicle (SPV), Freezone Global Investments Ltd, we seek to facilitate public private partnership investments in the Nigeria’s oil & gas free zones, maximizing their potential as vehicles for promoting accelerated growth and sustainable development 6


About the Oil & Gas Free Zones Authority (OGFZA) cont. • The Presidential Enabling Business Secretariat recently conducted an assessment of the nationwide implementation of EASE OF DOING BUSINESS Executive Order 001 (PROMOTION OF TRANSPARENCY & EFFICIENCY), to which we were highly commended and adjudged 4th overall for all Ministries, Departments and Agencies of Government- Our Free zones are conduits of economic prosperity.

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Greenfields Under OGFZA • There are five already licensed free zones under the regulatory control of OGFZA, with four located in the Niger Delta area of Nigeria, which sits on the southern coast of the country on the Gulf of Guinea, and one located on the west coast of Nigeria. • There are two greenfield zones with opportunities for free zone developers to build, operate and transfer (BOT) – Brass Oil & Gas City, Bayelsa State and Ikpokiri Island, Rivers State. • OGFZA is keen to attract developers into these greenfields.

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Invitation To Partner With The Oil & Gas Free Zones Authority The Oil and Gas Free Zones Authority is seeking investors (Developers) with the financial and technical capacity to partner with the Free Zones Authority to develop Ikpokiri Island into an Oil & Gas Industrial City and develop Brass Oil & Gas City. • The partnership will be on a Public, Private Partnership model of Build, Operate and Transfer (BOT). • Return on investment will be recouped from lease fees and operational charges for a period ranging between 20-25 years. • The parties will enter into a definitive agreement on the terms of the partnership.

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Opportunities For Partnership: Brass Oil & Gas City Key Facts: •

Free Zone License already approved for Brass Oil & Gas City in May 2015

Agip/Eni, Brass Fertilizer Ltd and Brass LNG are currently operating in Brass Island.

With the exclusion of the land currently occupied by the three operators listed above, there is a total of approximately 8000 hectares of greenfield available in Brass Oil & Gas City.

2000 hectares of land available to develop in two phases of 1000 hectares each which requires sand-filling.

Entire shoreline of Brass Island is approximately 25km

Shoreline of land earmarked for development is approximately 14km

Strategically located on the Atlantic ocean coast and close to major offshore oil and gas fields with navigational access via jetty 10


Opportunities For Partnership: Brass Oil & Gas City Opportunities For Development: • Supply of power

• Earthworks and subgrade • Build roads • Concrete pavement for roads and walkways

• Utility works, drainages and road crossing work • Build Offices and Residential Estate

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Opportunities For Partnership: Ikpokiri Island Key Facts: • The island is a total of 2,123.338 hectares of undeveloped land. • There is 1,477 hectares of land to be sand-filled and developed. • The island is about 500m from the Onne Port. • It is strategically located in the Niger Delta Basin area of Rivers State.

• It is in close proximity to the major oil and gas fields of the Niger Delta Basin and the Sub-Saharan African Region. • OGFZA has completed the physical survey of the island and a master development plan of the Industrial City. • The Island is divided into three (3) development zones. The 3 zones are marked as zones A, B & C. 12


Key Facts: Features Of The Development Plan For Ikpokiri Island (Cont.) Zone A - Industrial Area: 1328 Ha

Zone B- Industrial Area- 699 Ha

•Refineries •Petro Chemical Plants •Fertilizer Plants •Power Plants •Landing Jetties •Warehouses •Stacking areas •Internal Road Network •Sewage system

•Refineries •Petro Chemical Plants •Fertilizer Plants •Process plants •Power plants •Warehouses •Stacking Areas •Internal Road Network •Sewage system

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Key Facts: The Features Of Cont. The Development Project Plan For Ikpokiri Island (Cont.) Zone C- Residential Area- 95Ha •Twin 4 Bedroom houses •Twin 3 Bedroom houses •Blocks of 3, 2, & 1 Bedroom Flats •Training School •Hostels •Hotel •Golf Course •Sports Arena •Internal Road Network •Sewage system 14


Opportunities For Partnership: Ikpokiri Island Opportunities For Development: •

Development of up to 3km of new jetty – from 12m to 14m draft

Development of up to 2km of new jetty dedicated to LNG carriers, maintenance, supply vessels, rig repair

Development of up to 1km of new jetty dedicated to floating, production,

storage and offloading (FPSO) integration and maintenance •

Development of up to 1,380,000 sqm of stacking area

Earthworks and subgrade

Build a bridge approximately 1km long

Build roads: approximately 10km long

Concrete pavement for roads and walkways

Utility works, drainages and road crossing work 15


Government Incentives For Investors In O&G Free Zones CUSTOMS INCENTIVES • • • • • •

• •

• • •

No customs import form required for importation into the Free Zone. Fast-track cargo clearance procedures (pre-release on placement of bank bond). Fast-track air freight cargo movement – international airports to free zones. No time limit on cargo storage. No custom duty applicable within the free zone. No custom duty payable for goods exported from the free zone to other countries. No custom duty payable on goods in transit from any part of entry in Nigeria to the Free Zone. Goods may be stored indefinitely, sold, exhibited, broken-up, packed, graded, cleaned, marked, loaded, unloaded, reloaded, divided, mixed, separated or otherwise manipulated. Goods may be worked, processed or reprocessed or otherwise manipulated or manufactured. Goods may be consumed in the Free zone. 16 No import or export licenses required.


Government Incentives For Investors In O&G Free Zones (Cont.)

LOGISTICS AND SUPPLY CHAIN INCENTIVES • Waiver on pre-shipment inspection of goods (a current requirement for imports into Nigeria) • Faster clearance of goods (time and consequent cost savings) • Round-the-clock operations (eliminating costly delays) • Direct access to sea port and international airport (ensuring faster and cost efficient movement of equipment) • One-stop-shop (eliminating double handling of cargo, and the resultant cost savings) • Availability of support services: stevedoring, terminal and supply base operators, stockist, ship/boat maintenance etc. (Reducing delays and enhancing efficiency). 17


Government Incentives For Investors In O&G Free Zones (Cont.) IMMIGRATION INCENTIVES • Immigration fast track procedure. • A subject-to-regularization (STR) Visa is regularized on arrival of applicant at the Free Zone by the Free Zone Immigration Unit. • Expatriates on Free Zone Status must work and reside within the Free Zones only but can attend meetings or/and conferences outside the zones on call time basis. • No quota regime for expatriate employment.

TAXATION No value added tax; No withholding tax; No corporate tax; No capital gains tax; No Federal, State, and Local Government taxes • 100% foreign ownership • 100% repatriation of profit & dividends • 100% repatriation of foreign capital investment • • • • •

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Government Incentives For Investors In O&G Free Zones (Cont.) ADDITIONAL INCENTIVES FOR (Manufacturing, Assembling, Processing) In line with the growing needs and requests by the market and global economy, some benefits have been extended to some sectors initially excluded from the incentives: • Duty Payment on Raw Materials only. • Enterprises in the Free Zones are allowed to export into Nigerian territory up to 100% of their products. • The amount of import duties on goods manufactured, processed and assembled in the Free Zones and exported into the Nigerian Customs Territory shall be the rate of duties applicable to raw materials in the state in which they were originally introduced into the Free Zones. • All trades and commercial goods imported into the Free Zones in finished forms, without value addition, shall attract full duty on export into the Nigeria Custom Territory. • 75% Import Duty rebate on products of special nature where there is no local capacity. 19


Requirements For Registration Nigerian Registered Companies a. b. c. d. e. f. g. h. i.

DPR Certificate for Non-Oil Producing Companies & LNGs Certificate of Incorporation Memorandum and Articles of Association Company Profile Contact Person, Designation, Phone Numbers and Address of Company Report of the Feasibility Studies of the intended Investment in the Zone (Business Plan) Financial Profile & Personnel Profile Sources of funding (Local & Foreign) Company’s last three years Audited Account (Not applicable to companies less than one year in operation) 20


Requirements For Registration (Cont.) Offshore Companies a. b. c. d. e.

Certificate of Incorporation or Notarized Copy of Overseas Incorporation Memorandum and Articles of Association Company Profile Contact Person, Designation, Phone Numbers and Address of Company Report of the Feasibility Studies of the intended Investment in the Zone (Business Plan) f. Financial Profile & Personnel Profile g. Sources of funding h. Company’s last three years Audited Account (Not applicable to companies less than one year in operation) i. Affidavit issued by a Notary Public that the entity is Oil & Gas related Company. j. Official Confirmation from NPA / Terminal Operator of the facilities leased 21


Contact Details

4 Pope John Paul II Street, Off Gana Street, Maitama Abuja, Nigeria

Phone:

+234 (0) 8097958000

Website:

www.fzgil.org

Email:

office@fzgil.org 22

Profile for Freezone Global Investments Ltd

Investing in Nigeria’s Greenfields  

An overview of Nigeria's oil and gas free zones available for development.

Investing in Nigeria’s Greenfields  

An overview of Nigeria's oil and gas free zones available for development.

Profile for fzgil
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