FACTS AND FIGURES ON NLNG 2016

Facts & Figures on NLNG 2016

NLNG MD Babs Omotowa (middle, in black suit) with Prof. Kim Reynolds and Dr. Helen Limon with some GM, External Relations, Dr. Kudo Eresia-Eke, Louisa
some chiefs from NLNG's host communities at ground children at the NLNG-sponsored workshop for writers of Waddigham of British Council and 15 NLNG overseas
breaking ceremony for company's head office in Port children's literature. post-graduate scholarship recipients.
Harcourt.

Cover page: Picture of LNG Port Harcourt II, one of the new LNG carriers recently acquired by BGT, a wholly-owned subsidiary of NLNG.
2
Contents

The Company







7

Management Profile






11

Anti-Bribery and Corruption





22

The Plant








26

NLNG and its Contributions to the Nigerian Economy
31

Financial Transparency






36

Gas Supply








38

Commercial







40

Shipping








45

Finance








61

Nigerian Content







65

The Environment







73

Corporate Social Responsibility

National CSR
Community CSR




79

3
4
5
Some members of NLNG's Board and Executive Management paid a courtesy call on the President of the Federal Republic, Muhammadu Buhari, GCFR.
Picture shows NLNG board member and former GMD of NNPC, Joseph Dawha, presenting NLNG plant prototype.

6

THE COMPANY
Nigeria 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.
7
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 Shared Values
To market, produce and deliver liquefied natural gas and Integrity
natural gas liquids to buyers safely, reliably and profitably, Teamwork
growing our company and its people to their full potential, and Excellence
being a trusted partner with all our shareholders in the Caring
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 rigorous interviews, following

advertisement of vacancies on 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.

8

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
9
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 Directors David Astwood
Osobonye R. LongJohn Chairman Malcolm Mitchell Company Secretary
Babs Omotowa Managing Director
Isa Mohammed Inuwa Deputy Managing Director NSML Board of Directors
Ibe Kachikwu Maikanti Baru Chairman
Dr. Jamila Shu'ara Isa Mohammed Inuwa Vice Chairman
Cordelia C. Agboti Akachukwu Nwokedi Managing Director
Bagudu Hirse Yusuf Matashi
Ronald Cochrane Bashir Bello
Markus Droll Temilola Okesanjo
Nicolas Terraz Laurent Routisseau
Oghenegwueke Ajaifia Alfonso Pagano
Alfonso Pagano Peter Odjoji
Edith Unuigbe Company Secretary Edith Unuigbe Company Secretary

BGT Board of Directors

Osobonye R. LongJohn President
Babs Omotowa Vice President
Isa Mohammed Inuwa
Ibe Kachikwu
Dr. Jamila Shu'ara
Aleruchi Cookey-Gam
Umaru Dahiru
Ruud de Jongh
Bashir Bello
Oghenegwueke Ajaifia
Luca Bai
Luc Gillet
Donald H. Malcolm

10
 Master of Business Administration from the University of Ilorin.
MANAGEMENT PROFILE He also holds a Master of Business Administration specialising
in Supply Chain Management from University of Leicester,
MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER United Kingdom and he is a Fellow of the UK Chartered
Institute of Procurement and Supply (CIPS) where he has been
honoured as the CIPS Global president from 2014 – 2015.

After a stint as a Chemistry and Mathematics teacher at Bishop

Smith College, Ilorin, he joined Shell Petroleum Development
Company (SPDC) in 1993 where he started his career as a
management trainee and rose rapidly to senior roles 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 SNEPCo and later SPDC.

Babs Omotowa Over his distinguished career in Europe and Africa, Babs has
been renowned for strategic transformation, successful
Babs Omotowa is the Managing Director/Chief Executive
turnaround, as well as maximizing value chains. His goal in
Officer of Nigeria LNG Limited and the Vice President of
NLNG is to sustain the historical excellent performance, move
Bonny Gas Transport.
the company to the next level and make NLNG an inspiration
to Nigeria.
Babs has over 22 years' experience in the oil and gas industry
and prior to his current role at Nigeria LNG Limited, was a
NLNG is now rated the fourth largest company in Nigeria (first
Vice President in Shell Sub-Sahara Africa, a Director of Shell
among home-grown companies) and, in line with its vision of
Petroleum Development Company, Nigeria and also a Director
helping to build a better Nigeria, contributes over 12% of
of the West Africa Gas Pipeline Company.
government revenue in taxes and dividend. With revenue
exceeding $10bln in 2014, and managed to world class
He holds a Bachelor degree in Industrial Chemistry and a
standards, the company ranks with FTSE 100 companies

11
globally.
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.
DEPUTY MANAGING DIRECTOR
Isa Mohammed Inuwa
Isa Mohammed Inuwa, a staff of NNPC, is currently on
secondment to Nigeria LNG Limited as Deputy Managing
Director. With about 33 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, Witwatersrand, Saïd and Templeton Colleges of
Oxford University, Sendero Institute, Cranfield School of
12
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 of
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
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.
13
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
Temilola Fatai Okesanjo 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 GENERAL MANAGER, HUMAN
manning subsidiary of Nigeria LNG Limited. He currently leads RESOURCES
the BGT Plus Project—a project that will deliver six newbuild
LNG Carriers into BGT Fleet in replacement of the six old BGT Peter Ogheneovo Odjoji
LNG Carriers. Three of these—LNG Finima II, LNG Bonny II obtained a bachelor's degree in
and LNG Port Harcourt II have been delivered and have since Philosophy and a master's degree
made their maiden voyages. in Industrial and Labour Relations
from the University of Ibadan in
1980 and 1982 respectively. He is
Peter Ogheneovo Odjoji 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.

14
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 Board of NLNG Ship
Management Limited (NSML). Married with children, Peter has
attended numerous senior management courses locally and
internationally. He is an alumnus of the INSEAD Business
School, Fontainebleau, France.
15
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 PhD in Political
Kudo Eresia-Eke 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 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 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, a platform he used to inspire countless youths in Rivers
State, and forge consensus on the split of old Rivers State,
leading to the creation of Bayelsa State.
He has also enjoyed teaching stints in various universities in
Nigeria and South Africa and was the sole founding staff of
the Centre for Advanced Social Science, Port Harcourt.
Kudo joined the oil and gas industry in 1998 as pioneer
Community Relations and Development Manager for Nigeria
LNG Limited and has since then served in other managerial
positions including Public Affairs Manager, and Government
Relations Manager.
He was CEO of Nigeria's Oil and Gas Foundation, OGIF,
which supported the Federal Government's programme for
training and rehabilitation of ex Niger Delta militants. Kudo
also served on the Board of the Rivers State Sustainable
Development Agency.
He is a thinker and prolific writer with numerous publications
spanning poetry, short stories, inspirational and academic
essays. Kudo belongs to several professional organizations
including the International Association of Business
Communicators.
16
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
Solomon Segun Folaranmi
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
investments assets portfolio for the Fund. GENERAL MANAGER,
COMMERCIAL
In 2013, Mr. Folaranmi was appointed General Manager,
Finance, of Nigeria LNG Limited. His core competences in Godwill Dike is an accomplished
NLNG consist of Cost Optimization and Debt Financing Chartered Accountant and
initiatives for proposed Trains 7 and 8 and associated projects. Investment Manager with over 20
years' experience in oil and gas,
consulting and funds management.

Godwill Dike
Godwill holds a degree in
Accountancy from the Rivers State University of Science &
Technology and has completed the course modules for the
award of Master of Business Administration of IMD Business
School, Lausanne, Switzerland. He has attended several
professional courses and accumulated a wealth of experience
throughout his career across Africa, Europe and Asia.

He started his career with KPMG Nigeria where he passed his

professional exams with national prize honours. He joined Total
E&P Nigeria Limited in December 1994, enjoying a
remarkable career across different financial functions. In 2004,
he was appointed pioneer Manager with a charge to set up
the pension fund of Total Upstream companies in Nigeria,
under an independent entity – Total E&P Nigeria CPFA Limited
– where he formulated the Governance and Strategy
documents that enabled the entity to secure approval licence as
a Closed Pension Fund Administrator. He was then appointed
into the Board of Directors in 2007 to provide full leadership to
the CPFA, a position he held until 2010. His distinct knack for
value creation led to the Fund's accelerated growth.

17
From late 2010 to beginning of 2012, Godwill worked with
the LNG Strategy Division of Total S.A. France to provide
commercial support to the Group's LNG businesses around the
globe. While in this role, he was attached to the Mahakam
LNG Joint Marketing Group, under Total Indonesia, in the 22
mtpa Bontang LNG Plant. He later joined the LNG contracting
team of Total Gas & Power Limited (LNG Trading Desk) in
London where he positively contributed to several 'Sell' and
'Buy' Sale & Purchase Agreements (SPA), including notably, the
4 mtpa SPA under the Yamal project.
Prior to joining Nigeria LNG Limited in August 2015, as the
General Manager, Commercial, Godwill was General
Manager and Senior Advisor on Oil & Gas Commercial
Strategies at Total E&P Nigeria.
18
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 Isilebo
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 GENERAL COUNSEL/
period, he oversaw the rapid expansion and integration of the COMPANY SECRETARY
plant from a three-train 10 million tonnes per annum (mtpa) to
a six-train 22 mtpa operation. Edith Unuigbe holds a bachelor's
degree in Law from Obafemi
Between 2008 and 2010, he was back in Shell Upstream Awolowo University, Ile-Ife and a
International as Vice President (Gas & Power) with Master of Laws degree from
responsibility for South-East Asia (based in Singapore) where Harvard Law School, Harvard
he served as a Director on the boards of a number of Shell University in Cambridge,
Joint Venture companies in Brunei and Malaysia, including Edith Unuigbe Massachusetts, USA. Edith
Brunei Shell Petroleum, Brunei LNG, Brunei Shell Tankers, qualified in the Mini MBA in Oil and Gas in Houston USA in
Brunei Gas Carriers and Shell MDS in Malaysia. 2008; obtained the International Executive Programme
Certificate from INSEAD Business School, Fontainebleau,
He returned to NLNG again in 2011 as the first Nigerian France in 2009; attended and obtained a Certificate in
General Manager, Production. 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

19
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.

20
21

ANTI-BRIBERY AND
CORRUPTION (ABC)
Membership of United Nations Global Compact
In December 2015, NLNG became a signatory to United
Nations Global Compact (UNGC), the world's largest
Voluntary Corporate Responsibility Initiative with business and
non-business participants from 160 countries.
The UNGC supports companies to:
• Do business responsibly by aligning their strategies and
operations with the UNGC's Ten Principles anchored on
four global areas of human rights, labour, environment and
anti-corruption.
• Take strategic actions to advance broader societal
goals, such as the UN Sustainable Development Goals,
with an emphasis on collaboration and innovation.
Our UNGC membership is a public declaration of our
continued commitment to incorporating environmental, social
and governance standards in our strategies, policies and
procedures, as well as embedding a culture of integrity; all of
which are underscored in our Business Principles and Code of
Conduct.
22
A key component of our UNGC membership is an annual
report (Communication on Progress) to transparently inform the
public on how we are aligning with the universal principles,
supporting host communities, engaging customers, suppliers
and service providers on the need for responsible business
practices. These areas and more are adequately covered in this
publication in such sections as The Company, Nigerian
Content, Community Relations and Development, The
Environment, Biodiversity and Nature Conservation.
Business Principles
NLNG strong commitment to Integrity is reinforced by its
Business Principles. The Business Principles apply to all
transactions, large or small, and drive the behaviour expected
of every employee and director of NLNG in the conduct of its
business at all times.
Our values
Our shared core values of Integrity, Teamwork, Excellence and
Caring underpin all the work we do and are the foundation of
our Business Principles. The Business Principles, set out below,
are fundamental to how we conduct our business, and living by
them is crucial to our continued success.
Principle 1 - Economic
We believe that organizations that manage Economic, Social
and Environmental factors effectively are more likely to create
sustainable value over the long-term than those that do not. As
we work to fulfil our mandate to our stakeholders, we consider
and integrate these risks and opportunities into our investment
decisions.
Principle 2 - Competition
NLNG supports free enterprise. We seek to compete fairly and
ethically and within the framework of applicable laws.
Principle 3 - Business Integrity
NLNG insists on honesty, integrity and fairness in all aspects of
our business and expect the same in our relationships with all
those with whom we do business. The direct or indirect offer,
payment, soliciting or acceptance of bribes in any form
including facilitation payments is unacceptable.
Employees must avoid conflicts of interest between their private
activities and their part in the conduct of company business.
Employees must also declare to NLNG potential conflicts of
interest. All business transactions on behalf of NLNG must be
reflected fairly and accurately in the accounts of the company
in accordance with established procedures and are subject to
audit and disclosure.
Principle 4 - Political Activities
NLNG acts in a socially responsible manner within the laws of
the Federal Republic of Nigeria in pursuit of our legitimate
commercial, social and environmental objectives.
Principle 5 - Health, Safety, Security and the Environment
NLNG has a systematic approach to health, safety, security
23
and environmental management in order to achieve continuous
performance management.
To this end, NLNG manages these matters as critical business
activities; sets standards and targets for improvement; and
measures, appraises and reports performance externally.
We continually look for ways to reduce the environmental
impact of our operations, products and services.
Principle 6 - Local Communities
NLNG aims to be a good neighbour by continuously
improving the ways in which we contribute directly or indirectly
to the general well-being of the communities within which we
work.
We manage the social impacts of our business activities
carefully and work with others to enhance the benefits to local
communities and to mitigate any negative impacts from our
activities.
Principle 7 - Communication and Engagement
NLNG recognises that regular dialogue and engagement with
our stakeholders is essential. We are committed to reporting of
our performance by providing full relevant information to
legitimately interested parties, subject to any overriding
considerations of business confidentiality.
Principle 8 - Compliance
We comply with all applicable laws and regulations of the
Federal Republic of Nigeria and the countries in which we
operate.
Anti-Bribery and Corruption Training and
Awareness
The 'Tone at The Top' towards Bribery and Corruption in
NLNG is simple: it is one of zero tolerance. In order to drive
this down the entire organization, the Anti-Bribery and
Corruption effort of NLNG is multi-faceted, to assist employees
and stakeholders to manage the inherent risks.
Annual Anti-Bribery and Corruption training and awareness
sessions are conducted for all staff with additional focus on
functions assessed as high risk. The 2015 training was centred
on Ethical Procurement and Supply for all employees with at
risk functions having to take extra training on Procurement
Fraud. These aimed at raising awareness on current
developments and the required ethical considerations in the
company's supply chain.
ABC interactive sessions on Achieving Corruption Free Business
Environment were held with vendors at an Integrated Vendor's
Forum to reinforce our commitment to ensuring that our
counterparts are aware and abide by our Business Principles,
Code of Conduct and ABC policy.
Integrity Barometer Journey
In 2013-2014, NLNG undertook a baseline Integrity
Barometer assessment to provide a simple exposition of the
24
effectiveness of its policy and actions on anti-corruption
governance in relation to the company's operations across all
key sectors and divisions.
This year, a review based on the baseline study was carried
out to ascertain the progress made on agreed key focus areas
of the Transparency Index, for company to track and monitor its
business landscape for compliance with national and
international established standards on ABC.
Conflict of Interest
NLNG requires all staff members to declare any perceived or
actual conflict situations that exist during the course of their
engagement with the company. Declared conflicts are reviewed
and resolved by company management.
Employees are also required to declare any gifts and
hospitality given/received from the company's business
partners/associates.
The annual conflict of interest declarations also provides a
medium for staff members to attest to the NLNG Code of
Conduct & Business Principles.
25

THE PLANT
In 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 Natural Gas Liquids (NGLs) Handling Unit
(LHU)—condensate stabilisation and Liquefied Petroleum Gas
(LPG) production units. The expansion project 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
26
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 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 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.
• A common fractionation plant to process LPG.
• Five common Condensate stabilisation plant.
• 10 gas turbine electricity generators with a combined
capacity of more than 320 MW.
• 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.
• 24 LNG ships dedicated to the service of NLNG.
• A materials off-loading jetty.
• A passenger jetty/terminal.
• A Residential Area (RA) covering an area of more than two
sq.km.

The Plant is built on 2.27 sq.km of largely reclaimed land in NLNG Major Milestones
Finima, Bonny Island. The main elements of the facilities
already in operation are:

• Diversified gas supply (Associated Gas and Non-

Associated Gas) and six main dedicated gas transmission
pipelines with four of them located on-shore.
• Six LNG processing units (trains) with a total nameplate
processing capacity of 22 mtpa.
• Four LNG storage tanks, each with a capacity of 84,200
cubic metres.
• Four LPG refrigerated storage tanks, each with a capacity
of 65,000 cubic metres (two each for propane and
butane).
• Three Condensate storage tanks, each with a capacity of
36,000 cubic metres.

27
28
29
Some members of NLNG's Executive Management paid a courtesy call on the Comptroller-General of Nigeria Customs Service as part of company's stakeholder engagement.
Picture shows NLNG MD Babs Omotowa, the Comptroller-General, Col. Hameed Ali (rtd.) who displays NLNG's Facts and Figures publication, and DC Abdulkareem Bello.

30

NLNG AND ITS
CONTRIBUTIONS TO THE
NIGERIAN ECONOMY
With the incorporation of Nigeria LNG Limited (NLNG) on
17th May 1989, the LNG industry in Nigeria was born. NLNG
is successfully harnessing associated gas volumes which would
otherwise have been flared, and has already generated
significant revenues for the nation. It is now considered one of
the most important economic projects in Nigeria. Significant
benefits of the project to Nigeria are detailed on the next few
pages.
Monetisation of Gas
Nigeria LNG Limited 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
about USD23 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
USD32 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,
31
NNPC.
As a good corporate citizen, NLNG also contributes to
national wealth and the economic wellbeing of states in which
it operates, by paying all applicable taxes and tariffs. In 2015,
the company's corporate income tax paid to the Federal
Government of Nigeria amounted to about USD2.2 billion.
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 about USD15 billion financed mainly by
NLNG 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). With current
rebasing of the GDP, NLNG's contribution to the GDP is put at
about one per cent.
Environmental Hazard Reduction
NLNG has converted about 146Bcm (billion standard cubic
metres) or 5.16Tcf (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 strain on equipment.
Job Creation
Nigeria LNG (NLNG) Limited provided more than 12,000 jobs
each construction year. Overall, the major sub-contractors
employed over 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, Over 600 Nigerians have been
trained in Nigeria and at the contractors' (Hyundai and
Samsung) shipyards in Korea as part of Nigerian Content
deliverables tied to the purchase 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 join the country's workforce, providing a support base
for technology transfer and industrialization.
At the shipyards in Korea, over thirty-five of the Nigerian
trainees participated in the ship construction while six other
Nigerians worked as ship managers—two Production
Managers, two QA/QC Managers and two HSE Managers.
32
Local Content Development
NLNG supports the development of community and Nigerian
contractors to enable them to 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
midwifing of partnerships between more established Nigerian
vendors and community vendors.
NLNG's shipping subsidiary, Bonny Gas Transport (BGT),
recently ordered six new Dual Fuel Diesel Engine (DFDE) LNG
carriers from Hyundai Heavy Industries (two ships) and
Samsung Heavy Industries (four ships). Four of these have been
delivered and have since made their maiden voyages.
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 manufacturers for the construction of the vessels, and
feasibility study for the establishment of a dry-docking and
ship-repair yard in Nigeria.
Consequently, in 2015, Berger Paints and Paints and Coatings
Manufacturers Nigeria PLC produced and exported over
350,000 litres of paints; Nexans Kabelmetal shipped over
180,000 metres of low voltage (LV) cables and METEC West
Africa 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
manufactures 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. In a different
area of development, 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, for potable water reticulation
project.
33
Further, 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 desiccant in U-4700 (14 vessels in total). This makes
WPD the second Nigerian contractor with this level of
proficiency. The company can now compete in LNG trains
mole sieve bed change-out with CAKASA, the only contractor
with this kind of experience before now.
Also see the segment on Nigerian Content beginning from
page 65.
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
projects over the years. NLNG's host and pipeline communities
have enjoyed amenities such as roads, hospitals, schools, and
supply of learning aids, among others from NLNG.
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 throughout the day, and residential users
experience higher comfort levels. The flourishing businesses, in
turn, generate jobs for the indigenes.
For more information, see Community CSR from page 86.
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, thus ensuring LPG supply availability and
affordability in the domestic market.
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 both in terms of increased private sector investment
across the LPG value chain as well as increased consumption
which has grown from less than 40,000 metric tonnes in 2007
to over 320,000 metric tonnes in 2015. The intervention has
34
also contributed in effectively bringing 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 21 off-takers (all Nigerian
companies) for the lifting of LPG for the domestic market.
For more information, see Domestic LPG Supply on page 41.
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 Nigerianise
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 competences for management,
supervisory and operational positions in the 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 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, two 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 is donating close to N2 billion (USD12 million) for
the development of engineering education in six Nigerian
universities to support the country's educational sector. This
intervention, N340 million (USD2 million) in each university, is
being invested in the construction of modern engineering
laboratories and furnishing them with cutting-edge equipment.
The universities are University of Ibadan, University of llorin,
University of Port Harcourt, University of Maiduguri, Ahmadu
Bello University, and University of Nigeria, Nsukka.
Disbursement commenced in 2014 and will be completed in
2016.
35
The company promotes acquisition of vocational skills through
funding of the Bonny Vocational Centre (BVC). BVC is an
“Approved Centre” of the National Board for Technical
Education (NBTE), City and Guilds of London Institute, and the
Institute of Leadership and Management, London. It empowers
youths with appropriate vocational skills that will make them
gainfully employed and capable of contributing meaningfully
to their development and the society's.
The centre prides itself on its ability to help secure employment
for its graduates. At the moment, 129 BVC graduates are in full
time employment; 56 are in work placement (as interns) while
45 are in various universities and polytechnics including
ExxonMobil Technical Training Centre in Eket.
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 Finance Scheme (NLVFS)
which facilitates access to funds from participating banks to
NLNG-registered vendors (suppliers of goods or contractors of
services). Under the scheme vendors are able to get fairer
financing terms, which were secured using the leverage of
NLNG’s relationships with the banks. This way, vendors get
speedy access to finance for their contracts, or procurement
orders, at competitive rates. Over N366 million and USD21
million have been disbursed to NLNG vendors as at December
2015.
FINANCIAL TRANSPARENCY
In line with the company's commitment to transparency and a culture of integrity,
below is a summary of NLNG financials from 1999 to date

* As per agreement between NNPC and the other JV Partners under Modified Carry Agreement (MCA)
** Revenue figure for 2015 is from unaudited account

36
37

GAS SUPPLY
Nigeria 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.
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 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 bcf/d, equivalent to the total daily consumption of
industrialized countries like the Netherlands.
Gas Production and Utilisation in Nigeria

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 1999-2015, NLNG has
converted 146Bcm (Billion standard cubic meters) or 5.16Tcf of
Associated Gas (AG) to export products (equivalent to more
than 1864 LNG and NGL cargoes) which otherwise would
have been flared.
Gas Supply Agreements
With further improvement in the collection of associated gas, Nigeria LNG Limited has long term Gas Supply Agreements
NLNG with its 6-Train LNG/NGL complex will reduce (GSAs) with three Joint Ventures (JVs) for the supply of natural
upstream flaring in Nigeria even further. gas (feed gas) to the plant. These JVs are Shell Petroleum
Development Company of Nigeria Limited (SPDC), Total
Other demands on the use of Nigeria's gas are for domestic Exploration & Production Nigeria (TEPNG) and Nigerian Agip

38
Oil Company Limited (NAOC). Feedgas
Feedgas is produced by the JVs from various concession areas
Details of the agreements are as follows: (% vol. of gas supply in the Niger Delta—from onshore and offshore fields—and
by each JV): 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 which started-up in June 2010 (with a
capacity of 1.2 Bcf/d), Soku, Bonny (on-shore), Bonga, and
EA (off-shore) supply facilities, each receiving gas from a wide
range of oil and gas fields. However, beginning from the end
of the first quarter of 2016, gas from the Bonga and EA
offshores fields will be diverted to the Nigerian domestic gas
market via the Escravos Lagos Pipeline System (ELPS) in
compliance with the (Nigerian) Federal Government's directive.

Legend: Additionally, under a special supply arrangement with the

*

-
Operator SPDC-JV, an indigenous marginal field
NNPC

-
Nigerian National Petroleum concessionaire/operator—Niger Delta Petroleum Resources
Corporation (NDPR)—commenced natural gas supply to NLNG in
SPDC

-
Shell Petroleum Development Company November 2012 from its Ogbelle-Obumeze oil and gas
of Nigeria Limited (Shell Affiliate) process facilities. At 35mmscf/d, it currently supplies 1% of
NAOC

-
Nigerian Agip Oil Company Limited NLNG daily feedstock with potential to grow to 100mmscf/d.
(Eni affiliate)
EPNL/ The NAOC-JV supplies gas to NLNG from its Obiafu-Obrikom
(TEPNG)
-
Elf Petroleum (Nigeria) Limited now Total (OB-OB) Integrated Gas Supply centre which receives gas from
Exploration & Production Nigeria (Total a wide range of fields including Idu, Akri, Kwale, Irri, Oshie,
Affiliate) Tebidaba and Ebocha oil and gas fields.

39
The TEPNG-JV derives gas supplied to the plant from the
onshore Obite, Ibewa and Obagi fields. Additionally,
complimentary natural gas rich in liquids is supplied to NLNG
from its off-shore Amenam and Akpo platforms. 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.
The recently upgraded supply capacity of the TEPNG Obite
plant from 350mmscfd to 530mmscfd is poised to deliver
increased volumes to NLNG plant once the related 42-inch
diameter by 45km gas transmission pipeline (Obite Ubeta
Rumuji – OUR) is completed in 2016.

Also TEPNG will in 2016 complete the construction of another

24-inches diameter by 50km pipeline, the Northern Option
Pipe Line (NOPL), designed to evacuate gas from the OUR
pipeline at Rumuji to the Nigerian domestic gas grid at Imo
River for onward transmission to the ALAOJI IPP in Aba, Abia
State. COMMERCIAL
At present, with six trains in full operation, the total gas MARKETING AND SALES ADMINISTRATION
requirement of the company's Bonny Island natural gas Since October 1999 when the first LNG cargo was loaded for
liquefaction plant is about 3,500 mmscf/d (3.5 Bcf/d). 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
Currently, gas is transmitted to the NLNG complex through six
and LPG) worldwide. With a six-train complex of 22 mtpa LNG
independent Gas Transmission Systems (GTS). The GTS-1, -2, -4
nameplate production capacity and 5 mtpa NGLs production
and Bonny Non Associated Gas (BNAG) piping systems are
capacity, NLNG now has the capacity to load and safely
on-shore, while GTS-3 and -5 are off-shore lines. deliver over 300 cargoes of its products annually.

40
LNG Contracts
NLNG currently manages 16 long term LNG Sale & Purchase
Agreements (SPAs) executed with 11 buyers on a Delivered Ex-
Ship (DES) basis. These buyers include Enel, Gas Natural,
Botas, Engie, 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 Free on Board (FOB)
Master Sales Agreements (MSAs) 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 48 Spot FOB LNG MSAs 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
41
Petroleum Gas (LPG) and Condensate (Natural Gasoline), are
by-products of the natural gas liquefaction process and NLNG
currently has capacity to produce up to 5 million tonnes of
NGLs per annum. Both products are currently sold for export
on a Free on Board (FOB) basis to prequalified companies and
NLNG shareholders via annual 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
Sale and Purchase Agreements (SPAs) with domestic off-takers
(all Nigerian companies), and there are 21 contracts in place
today. In line with our commitment to ensure reliability of
supply in 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 700,000 tonnes of
LPG.
The LPG Domestic Supply Scheme has been an outstanding
success. It has led to increased reliability of supply, which has
in turn positively impacted end user prices, and attracted
significant private sector investments in infrastructure across the
value chain. The company is currently at an advanced stage of
a Market Deepening study to enable development and
implementation of intervention strategies that will grow the
market and expand the adoption of LPG as domestic energy
source of choice.

In The Future
In line with its profile as a growing organisation, NLNG will
continue to consolidate its position as one of the major and
reliable suppliers of LNG in the world.

NLNG's expansion plan under the Train 7 Plus project, which

will raise the liquefaction capacity to over 30 mtpa, continues
to make progress toward a Final Investment Decision (FID).
SPAs have already been executed with five buyers.

OFF-TAKERS CHART

42
 EMERGING MARKET

HISTORICAL MARKET

43
44

SHIPPING
NLNG has a total of nineteen LNG vessels on long-term charter
for its six-train operation, and one domestic LPG vessel 4
additional vessels are scheduled for delivery between
December 2015 and June 2016 which will bring the total
number of vessels on long term charter to 23 vessels.
All 23 LNG vessels will be utilised on an integrated scheduling
basis. They load at NLNG's Terminal in Bonny, Nigeria, for ex-
ship deliveries to buyers in Middle & Far 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 (Six membrane and seven Moss carriers)
BW Gas





8 (All membrane carriers)
Nippon Yusen Kaisha (NYK)


2 (All membrane carriers)
Operational and Technical Management of the Fleet
Vessels
• Eleven BGT vessels are managed and operated by NLNG
Ship Management Limited (NSML)
•
Two BGT vessels are managed and operated by Northern
45
Marine Management (NMM)
• Eight BW Gas vessels are managed and operated by BW
Gas
• Two Nippon Yusen Kaisha (NYK) vessels are managed and
operated by NYK
Two Dual Fuel Diesel Engines (DFDE) vessels, Golar Frost and
Golar Crystal, were chartered from Golar LNG for a one year
charter period (+/-60 days) and the charter will end in March
2016. In 2015, two additional vessels were chartered on an
ad hoc, single voyage basis: Soyo from Angola LNG, Lobito
from Angola LNG, and both vessels were re-delivered to their
owners on completion of their single voyage in 2015.
NLNG also had one vessel, Stena Clear Sky, under medium-
term charter. The vessel was chartered for a term period of
three years in 2012, and was redelivered to her owners 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.
46
With the SMKTP milestones now all successfully attained,
NLNG continues to increase ship management capacity
through continuous training and development.
NSML currently manages nine of the BGT vessels, having
already taken delivery of two of the new builds and, on
completion of the BGT Plus project, will take delivery of another
two vessels which will bring to eleven the total number of
vessels managed by NSML.
The remaining two of the six new builds will be managed by a
secondary fleet manger – Northern Marine Management —
and this is for benchmarking purposes.
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 has currently taken
delivery of two out of the six Dual Fuel Diesel Engine (DFDE)
LNG carriers being built 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
47
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 includes 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
was 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.
48
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:
• Application and adherence to NLNG HSE Policy and
Procedures
• Biannual Fleet Managers' HSSE workshop to discuss and
exchange best practice and HSSE improvement
• 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
• Shipboard Audit Programme and Safety Management
Systems
• Continuous implementation and improvement of HSE
initiatives
• Independent LNG Shipping Performance Benchmarking
Programme
• Implementation of Behavioural Based Safety (BBS)
programmes to continually improve the safety culture
onboard
• Analysis and sharing of incident report recommendations
across the Fleet in a process called Learning from Incidents
(LFI)
• Continuous engagement with Fleet Managers for improved
performance
• Ship Management Assurance Review (SMAR) Audit which
involves sailing with the vessel.
• Quarterly HSSE newsletter to demonstrate commitment and
share learnings
• Monitoring and implementing applicable local and
international regulations
• Worksite Hazard Management Programme
The Fleet HSE statistics including *TRCF and LTIF from 2012 to
2015 is 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
49
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 SIRE Inspectors using the Ship Inspection Report
Exchange Programme (SIRE) as a unique risk assessment tool in
the conduct of inspections, are consistent with industry best
practice.
To this end, NLNG has consistently demonstrated leadership as
a member of 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 was recently re-
elected into the SIRE Focus Group (SFG) for a second tenure.
NLNG Marine Resource Centre (MRC)
NLNG is building a Marine Resource Centre (MRC) in Bonny
which will host a Vessel Traffic Information Management providing additional assurance for delicate operations.
System (VTIMS) and Marine Simulator Facility (MSF).
Shipping: Major Milestones .
The VTIMS was completed in August, 2015 and currently
operated under the “International Association of Marine Aids
to Navigation and Lighthouse Authorities” (IALA), guide as a
“Local Port Service” (LPS) to monitor, inform and advise vessels
thereby assisting in safety of navigation and environmental
protection in Bonny waters and NLNG marine facilities.

The MSF is part of the Nigerian Local Content deliverables

attached to the six new LNG ships ordered from HHI and SHI.
It includes the provision of one LNG ship model replica of the
new ships to a scale of 25:1 to be used for ship handling
training, one full mission bridge and engine simulator units
with capabilities for basic and mandatory shipping courses
including VTS, Cargo Loading, ECDIS, mini bridge simulator
suits, instructor and trainee stations.

The MSF will ensure the provision of world-class maritime

training and research services in the West-African sub-region.
Training and Consultancy services will be provided to fleet and
shore personnel of NLNG's in-house ship management outfit
(NSML), personnel of NLNG Shipping Division as well as to
external organizations as stakeholders in the marine, oil and
gas industry.

The facility will also be used to conduct marine simulation

scenario checks before actually executing them as a means of

50
51
52
53
54
55
56

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.
The company will 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
the competency certification requirements. Engineering Cadets
57
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
2015 NSML had trained 25 engineering officers who now
have dual certification.
NSML currently has 198 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 rank yet, in 2013, with Board approval,
NSML started recruiting and employing foreign senior officers
to allow the Manning Agreement with AESM to run down. By
the end of 2015 NSML had employed 49 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 360 Ratings in its employment and this
number is expected to increase to 385 by end of 2016.
For more information, see Shipping under Nigerian Content on
page 66.
58
59
60
 of USD180 million, an uncovered Nigerian commercial bank
FINANCE loan of USD160 million and an African Development Bank
facility of USD100 million. The ECAs, namely US EXIM, ECGD,
THE TRAINS 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
Trains 1 & 2 (Base Project)
as the African Development Bank facility had eight-year tenure.
The Base Project (Trains 1 & 2) which cost USD3.6 billion was
The facilities have been fully repaid as at 15 December 2010,
financed by NLNG's shareholders.
with a USD20 million short-term 'place holder' financing
remaining in place.
Train 3 (Expansion Project)
NLNG's third train (Expansion Project), including additional
The financial discipline and character demonstrated by NLNG
tankage, cost USD1.8 billion. The financing was carried out in
in abiding by the loan covenants, terms and conditions
a manner similar to that of the Base Project. Besides new
throughout the tenure has significantly increased the appetite of
equity injection by the shareholders, revenue and surpluses
international lenders for financing opportunities involving the
from the Base Project were re-invested in the Expansion Project.
company.
Much of the cost of the new LNG tankers was borne by third
party financiers. When this loan was secured in 2002, the
Train 6
amount represented the single largest lending to an industrial
Final Investment Decision (FID) for NLNGSix was taken in July
complex in sub-Saharan Africa at the time.
2004 for the sum of USD1,748 million. Train 6 was principally
financed from internally generated funds. Start-Up was
Trains 4 & 5 (NLNGPlus Project)
December 14, 2007 and production commenced on 23rd
Excluding ship acquisition, the cost for NLNGPlus project
December 2007. The train is up and running.
(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 comprised of four Export Credit Agency Trains 1 & 2 (Base Project)
(ECA) guaranteed international commercial bank loans In 1990, the company raised a third party loan of USD132
totalling USD620 million, an uncovered international bank loan million through Citibank to buy four ships for the Base Project.

61
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:
• 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.
• 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
62
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 seven of the 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 to more distant
destinations, in response to changing business opportunities.
As a result, additional shipping capacity has become
necessary. In April 2013, Bonny Gas Transport ordered six
new vessels to be constructed by Hyundai Heavy Industries
(two ships) and Samsung Heavy Industries (four ships). Three
vessels were delivered in 2015, the remaining three 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 USD1,100 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 Korean Trade Insurance Corporation
(K- SURE). The deals were signed off on March 26, 2013.

63
64

NIGERIAN CONTENT
NLNG 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.
In the company, 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
65
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 as well as 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 enhancing their
capabilities to compete on an international scale.
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:
• 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.
• Strategic partnerships between the more established
Nigerian vendors and the community vendors, as in the
case of SJ Abed and Vikal Nigeria Enterprise for the
 provision of catering services.
• Fifty-four vendors from the community have been trained at
Bonny Vocational Centre to improve their skills in Business
development and project management.
• NLNG's deliberate strategies implemented to increase
spend in the community have led to a significant increase
in year-on-year spend with direct spend increasing by over
100% between 2011 and 2013 and even further 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.
66
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 and also on the 5th of November, 2015, in
Port Harcourt, to promote the development of ship repair yards
in Nigeria. As a result of the roadshow in Lagos, an investor -
Badagry Ship Repair Marine Engineering Consortium (BSMEC)
- indicated interest to be the lead investor. BSMEC has chosen
to site a dry-dock yard in Badagry, Lagos State.
The investors' roadshow in Port Harcourt is intended to spur
more investors to make decision to site other dry-dock yards in
any of the other locations considered in the feasibility study.
The feasibility studies were carried out at various sites such as
Onne, Bonny, Olokola, Badagry, Ogogoro Island and Ladol.
The dry-dock yards will bridge the gap created by the absence
of an operational dockyard in Nigeria to cater for the repair
and maintenance of Very Large Crude Carriers (VLCC), LNG
67
carriers, large and medium size carriers, drilling rigs and
support vessels. The dry-dock feasibility study is one of the
Nigerian Content deliverables on the BGT Plus project.
Training and Skills Acquisition
• Thirty-five Nigerian trainees participated in the ships'
construction in Korea as part of the implementation of the
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 Services Limited (IESL) in Lagos.
• About 180 Nigerians have completed the basic welding
training in the Bonny Vocational Centre training facilities of
Hyundai Heavy Industries and Samsung Heavy Industries.
• Six Nigerians participated in the ship construction at the
Ulsan shipyard of HHI as ship managers (two Production
Managers, two QA/QC Managers and two HSE
Managers)
• About one hundred and twenty (120) Nigerian trainees
have completed the ship construction training in Samsung
Heavy Industries in Korea.
• Over 230 Nigerian trainees have completed Samsung
Basic Welding training at Bonny Vocational Center (BVC).
68
• 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.
• 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 Manning Limited to form a new company,
NLNG Ship Management Limited (NSML), a wholly–owned
subsidiary of NLNG dedicated to provide ship manning
and management services to NLNG and the industry at
large.
Finance
NLNG vendors continue to benefit from the USD1 billion
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 N366 million and over USD21 million have 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 is regularly updated with
information relevant to vendors for conducting business with
NLNG including:
• Areas of business in NLNG with available or limited
opportunities.
• Overview of upcoming contracting/procurement
opportunities in NLNG.
• Details for registration on the Company's Electronic Vendor
Information Management System.
• Vendor development opportunities.
• Vendor related Frequently Asked Questions.
Examples of major awards made to Nigerian service providers
recently:
• 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
69
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.
• PCMN and Berger Paints Nigeria Plc have completed
the export of 480,000 litres of paints to both Samsung
and Hyundai ship yards in South Korea
• Over 180,000 metres of low voltage (LV) cables from
Nexans Kabelmetal have been shipped to Korea.
• Over 9,000 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
• Moveable furniture for the six new ships was made by
two Nigerian Companies, IO Furniture Limited and
Vina International Limited and shipped to South Korea.
Vendor Development
Doing business with Nigeria LNG has engendered
improvement in some of our vendors' business processes, and
led them to upgrade their facilities and capacity to meet very
stringent requirements.
In the past, NLNG worked with Dorman Long Nigeria Limited
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 anodes 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. The
company can now compete in LNG trains mole sieve bed
change-out with CAKASA, the only contractor with this kind of
experience before now.
The under-listed are examples of some of the indigenous
companies which have recently benefited from NLNG Nigerian
Content Policy implementation drive.
Berger Paints PLC
An order was placed with Berger Paints PLC for the supply of
marine coatings for use on the two new DFDE LNG carriers
that were built in South Korea for BGT by Hyundai Heavy
Industries. Following that order, Berger Paints was able to
increase its portfolio of paints and manufacture to international
standards for marine applications, having installed state of the
art laboratory equipment and acquired additional production
equipment.
70
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 that were built in South Korea for BGT by
Samsung Heavy Industries in Korea. As a result of the order
and the need for the company to increase capacity and
competence, PCMN went ahead to become the first company
in Africa to receive the Inter Marine Organisation's Intershield
300 Ballast Tank Coating certification. The company 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 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
Nigerian aircraft engineers, aircraft dispatchers and 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. Holborn, with intervention and
support from NLNG, commenced manufacturing of these pipes
in Kano. All the pipes have since been delivered and installed
in water reticulation project on Bonny Island. The strategic
impact of this ground-breaking production by Holborn is
significant and the in-country capacity acquired by Holborn is
now available for national patronage.
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
71
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.
72

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 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 issue 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
73
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 annual mitigation and compliance
monitoring exercises of NLNG Projects.
In addition, NLNG submits itself to external audits from
independent auditors, e.g. British Standards Institution (BSI),
and is ISO14001:2004 certified as well as conducts regular
monitoring of its own HSE performance, in pursuance of
continuous improvement and to foster a positive HSE culture
within the organisation.
A summary of NLNG HSE statistics from 2007 to
2015 (November) 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 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. NLNG just
conducted the scheduled Biological Health Study of Bonny
River by a Federal Ministry of Environment accredited
environmental consultant.
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
74
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.
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, non-
hazardous solid wastes are temporarily stored on the plant site
before being transported to treatment and/or disposal facilities
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
75
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, there
is continuous ambient air quality monitoring, while stack
emissions 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 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.
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.

species.
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 national and global conservation, 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
76
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. There have been reported
sightings of The African Fish Eagle—Haliaeetus vocifer. Troops
of the Mona monkey—Cercopithecus mona—and flocks of the
White-face Whistling duck—Dendrocygna viduata—are
commonly sighted and are the park's most predominant
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 have been
carried out in the park; there is a plan to carry out another set
of studies in 2016
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's skeletal parts were collected and
assembled, and are currently being preserved at Finima Nature
Park. The whale bones have now been properly housed in an
enclosure to reduce the effect of the natural elements on the
bones.
77
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. In 2016, these conservation clubs will be officially
inaugurated.
Commissioning of NLNG-sponsored laboratory at ABU, Zaria. From left: Prof. Anthony Onwuka, Minister of State for Education who represented the President; Arc. Mohammed Dewu,
Pro-chancellor and Chairman of Council; NLNG MD Babs Omotowa; Mohammadu Bashir Saidu, Kaduna State Commissioner of Local Govt. who represented the state Governor;
HRH Igwe Alfred Achebe, Obi of Onitsha and Chancellor, ABU, Zaria.

78

CORPORATE SOCIAL
RESPONSIBILITY (CSR)
Nigeria LNG's approach to corporate social responsibility is
anchored on sustainability, stakeholding and partnership.
NLNG is guided in this by its conviction based on sound
business principles that it is ethically unacceptable for a
successful corporate entity to operate as an oasis of opulence
in a sea of want.
NLNG therefore strategically conceives and implements
projects at both national and local levels that will positively
impact the lives of citizens.
The following pages present some of these corporate social
responsibility programmes at both national and local levels.
NATIONAL CSR
Scholarship Schemes
NLNG remains focused on education and human capital
development as areas of special significance, because these
two areas are intrinsic and fundamental to national
development and the sustenance of that development.
Consequently, the company opened up its Undergraduate
79
Scholarship Scheme and Overseas Post Graduate Scholarship
Scheme to the entire nation, so that the benefits of sound
education can be enjoyed by individuals who so qualify and
subsequently by Nigeria as a nation.
For details on these two scholarship schemes, please see pages
91 to 92 under Education in the segment on Community CSR.
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 has spent about USD12
million (amounting to USD2 million per university) on building
modern engineering laboratories and procuring 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, Zaria.
Most of the universities have completed construction, renovation
and/or procurement work. Recently, commissioning of the
project was done in Ahmadu Bello University, Zaria, with
projects in the other five universities expected to be ready for
commissioning before the end of second quarter of 2016.
Work has been ongoing in those universities since October
2014 when the project implementation phase kicked off.
The Nigeria Prizes For Science, Literature and
Literary Criticism
The Nigeria Prize for Science, The Nigeria Prize for Literature
and The Nigeria 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 Nigeria.
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 Advisory Board of The Nigeria Prize for Literature and
the Advisory Board of the Nigeria Prize for Science
respectively. These boards are composed of individuals with
impeccable character, towering stature and appropriate
academic and professional accomplishments. Winners are
announced in October, commemorating the first export of LNG
cargo by NLNG on October 9, 1999.
80
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.
81
Professor Micheal Adikwu, in 2006, showed in his
winningwork, 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; joint winners emerged for the children's literature.
Professor Akachi Adimora-Ezeigbo and Mabel Segun jointly
won 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 Destabilisation
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
82
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 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 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's 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. Following the outcome
of the conference, The Nigeria Prize for Science has been
rejuvenated with the inauguration of a new Advisory Board,
having gone through a review of strategy. The Nigeria Prize for
83
Science will therefore resume in 2016 with invitation for entries
from interested scientists.
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. Of these 11, 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.

84
85
COMMUNITY CSR the 1.5km by-pass road, the 1.2km access road, uninterrupted
electricity and potable water supply managed through a
As part of its CSR activities, the company, through the special purpose vehicle called Bonny Utility Company (BUC).
Community Relations and Development Over the years, more than $182m has been spent by the JIC in
delivering development projects on the Island.
Department, provides support to its host communities -
Bonny Kingdom and the contiguous pipeline communities.
In spite of this, there were still agitations for economic
Specifically, NLNG supports the improvement of infrastructure,
empowerment, employment and infrastructural development in
health and educational facilities and encourages local
the area. It also became apparent that there was wholesome
enterprise, facilitating know-how and building capacity in the
reliance on the JIC for economic development of the Kingdom.
sustainable use of resources in its host communities.
This became the basis for the Pan Bonny Sustainable
Development Conference which was convened on the 25th of
To build and maintain positive relationships with the
May 2013 by His Majesty, King Edward Asimini William
communities, engagement specialists are assigned to specific
Dappa Pepple III, Perekule XI, Amanyanabo of Grand Bonny
settlements as engagement officers, covering Bonny, Finima,
Kingdom, in conjunction with Bonny Chiefs' Council, and with
Rumuji, Ubeta, and the pipeline communities. Others work as
the active support of the Joint Industry Companies (JIC) led by
development officers specialising in key areas such as health,
Nigeria LNG Limited to determine the future of development on
education, economic empowerment and youth development.
Bonny Island. In the aftermath of the conference, concrete steps
The company operates an open door policy. Officers meet
were taken to give effect to the resolutions adopted at the
regularly with representatives of host communities, formally and
conference.
informally, to maintain good relationships and enhance mutual
advancement.
A major step in this regard is the signing of another MOU
rd
between Bonny Kingdom and NLNG/SPDC on 3 October,
MOU with Bonny Kingdom
2015. This MOU sets out the basis for community-led
In 1998, the Joint Industry Companies (JIC), made up of
development under the auspices of a proposed Bonny Kingdom
NLNG, Shell Petroleum Development Company Limited (SPDC)
Development Foundation and the transfer/handover of the
and Exxon Mobil, signed an MOU with Bonny Kingdom.
Initiatives (BUC, Ibanise Initiative and Bonny Vocational Centre)
to Bonny Kingdom.
This MOU provided a framework which enabled the JIC to pool
resources and provide the kingdom with Bonny Master Plan,

86
Presently, Accenture, a world class consulting firm, has been
engaged over a two-year period beginning October 2015 to
set up this Foundation, draw up a governance framework,
design systems and procedures to guide the operations of the
Foundation, handhold and grow the capacity of the community
in order to embed business and fiscal discipline in the
operations of the Foundation. It is expected that the full take off
of the Foundation and implementation of the master plan
would herald tremendous development in Bonny Kingdom.
Bonny Utility Company (BUC)
Bonny Utility Company manages the provision of
utilities—power and water—on Bonny Island. This is one of the
initiatives handed over to Bonny Kingdom under the new
MOU.
This initiative has, since its inception, provided Bonny Island
with over 98 percent uninterrupted power supply. The benefits
have been tremendous. These include:
1. Increased pace of development, with per capita electricity
consumption increasing from under 250 kWh per year in
2002 to over 960 kWh per year in 2014.
2. Creation of full-time and part-time jobs for the local
community.
3. Years of disturbance-free operation for the Island's major
industries.
4. Better performance by public services; flourishing of
businesses as machinery and equipment are utilized at
optimum levels while residential users experience higher
comfort levels.
87
5. Environmentally friendly operations through the elimination
of noisy and polluting generator sets.
6. Safe and secure environment at night due to presence of
functional street lighting.
Currently, BUC serves 11,700 households, essentially covering
the entire island via its power distribution network. It offers
customers a progressive tariff schedule, i.e., 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 also uses prepayment metering
and adopts a cashless transaction mechanism in its revenue
collection.
BUC also handles the operation, maintenance and
management of water facilities on 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 scheduled for completion in 2016.
The scope of Bonny water upgrade project includes the
following:
• Installation of water distribution network (about 90km)
in the entire community with HDPE pipes.
• Construction of about 300 water fetching kiosks at
different locations in Bonny and Finima for public use.
• Drilling of bore-holes and construction of new water
treatment plants and overhead water tanks at
 Ogugumanga, Old Town (Bypass Road area) and INFRASTRUCTURAL DEVELOPMENT
Akiama.
With activities ranging from electricity generation, road
Right of Way Maintenance Contract
construction and repairs to water supply as well as building
NLNG recognises the Nigerian cultural attachment to land and
and furnishing of schools, Nigeria LNG Limited has made the
the obvious fact that no legislation, no matter how well
concept of good neighbourliness come alive in its host
intended, captures all the expectations of the people. It is in
communities. It has constructed ultramodern health centres,
this regard that it adopted a systematic approach in its pipeline
provided hospital equipment, and, in some cases, also installed
communities which seeks to promote a sense of ownership or
electricity transformers. It has built several kilometres of roads,
identification.
several schools and primary health centres in several
communities in Rivers State and promoted social interaction
NLNG, after paying compensation for Right of Way trees and
among communities.
crops, went the extra mile to ensure that perceived feelings of
dispossession and deprivation were assuaged. This was done
These are in addition to health awareness campaigns,
through the award of Gas Transmission System (GTS) Right of
engagement sessions, sponsorship of immunization campaigns,
Way (ROW) surveillance or maintenance contracts.
renovation of schools and town halls, sinking of water
boreholes, and provision of school furniture and writing
Holders of GTS ROW maintenance contracts, which rotate
materials in host and pipeline communities.
among the land-owning families only, employ family members
to execute jobs which cover:
Examples of some of the projects successfully executed in our
• Pipeline Right of Way surveillance and inspection
host and pipeline communities are:
• Asset maintenance: painting of signposts and markers,
• Omokwa - Town Hall project
grass cutting, etc.
• Rumuji - 2.7km road project
• Ogbunabali - Upgrade of health centre
To encourage the contractors, an annual award ceremony is
• Anwunugbokor - Complete fencing and installation of
held to recognise outstanding ROW contractors. Awards are
water bore-hole in the community school
given to the Best HSEQ Compliant Contractor, and for the
• Amadi-Ama - Doctors and nurses’ quarters
timely submission of reports, among others.
• Peterside - Community Health Centre
• Abalamabie - Town Hall

88
89
• Finima - Finima Women Association Bakery
• Okposi - Community Health Centre staff quarters
• Ubio - Community Health Centre staff quarters
• Ebogoro - Community Health Centre staff quarters
• Bakana - Installation of three (500 KVA) transformers and
building of generator houses
• Ogbo - Science laboratory at Community Secondary
School
• Ubeta - Science laboratory at Community Secondary
School
• Odiemerenyi - External fencing off of four borrow pits.
• Peterside-Electrification project.
The following projects are currently on-going:
• Bonny - Water reticulation project
• Omoku - Cold room
• Ekpena and Ohali-Usomini - Model primary school project
• Ubeta - Road drainage
HEALTH
Mass Deworming Exercise
To reduce anemia in children and improve on their cognitive
abilities for better performance in school, NLNG went into
partnership with Glaxo SmithKline and Rivers State Ministry of
Health to abate the rate of worm infestations in school-age
children within its host communities. In 2015, a total of 99,983
pupils in 384 primary and junior secondary schools in Bonny
Island and the Gas Transmission System (GTS) communities
90
participated in the mass deworming exercise. According to
World Health Organisation, this exercise will help reduce
absenteeism from classes and increase overall health of treated
children.
Global Malaria Eradication Programme [GMEP]
Following the launch of Roll Back Malaria Campaign in 1998,
WHO recently brought back on the table GMEP which it
initially launched in the 1940s. In line with WHO's goal to
eradicate malaria, NLNG marked World Malaria Day in 2015
by screening 4,395 persons across its host communities for
malaria parasites with RDT kits and, in collaboration with the
Rivers State Government, provided Information Education &
Communication (IEC) materials and long-lasting insecticide
treated bed nets.
Similarly, NLNG carried out Intermittent Preventive Malaria
Treatment in Pregnancy in line with WHO recommendation to
administer sulfadoxine-pyrimethamine (SP) during antenatal
care visits regardless of whether recipient is infected with
malaria. This is because malaria infection during pregnancy
has substantial risks for the mother, foetus and neonate. A total
of 1,054 women in 23 health facilities were managed across
NLNG host communities. The 2015 exercise which started in
July is on-going as management is for a period of pregnancy
term.
Eye Care Exercise
In support of WHO global action plan for the prevention of
avoidable blindness and visual impairment and in
commemoration of 2015 World Sight Day usually held in
October, NLNG conducted Eye Health Care Campaigns in its
primary host communities. In line with the theme for the year
“Towards Universal Eye Health”, IEC materials were used to
emphasize the need for eye health. Investigation on refractive
errors were conducted and appropriate corrective lenses
administered; those with severe eye disorders were referred for
proper management. Over 2,000 persons participated in the
exercise.
World AIDS Day (WAD)
NLNG, in collaboration with Rivers State Primary Health Care,
organised a 2-day programme to mark 2015 WAD on Bonny
Island. IEC materials were used for both the roadshow held on
the eve of WAD and on WAD with the theme “Getting to Zero;
Zero new HIV infections; Zero AIDS related deaths; and Zero
Discrimination” and a national sub-theme “Get Involved”. 255
persons were counselled and tested—four tested positive and
were appropriately referred for follow up care and support.
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.
91
NLNG Post Primary Scholarship
The scheme aims at supporting high performing basic six
pupils in company's host communities and the oil-producing
states of Nigeria to access post primary education.
The scheme kicked off in 2012 with 28 beneficiaries, and grew
to a total of 172 beneficiaries by 2015.
Prospective pupils are admitted onto the scheme based on
excellent performance at the annual National Examinations
Council's (NECO) Common Entrance Examinations.
NLNG Undergraduate Scholarship
This was founded as a critical component of education
intervention programme for our host communities in 1998 and
was later opened up to the rest of Nigeria in 2003.
A total of 2,833 undergraduates from various universities in
Nigeria have benefited from it. Over N600 million have been
expended on the scheme. 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.
NLNG Overseas Post Graduate Scholarship
This scheme was launched in October 2012 and is being
managed by the British Council. The first 10 beneficiaries and
second 13 beneficiaries left to the United Kingdom for their
studies in 2013 and 2014 respectively. The scholarship is
valued at between N9 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 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 first and second sets of beneficiaries have completed their

studies and returned to Nigeria. The 2015 set of 15
beneficiaries has commenced their programmes 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. As at end of
2015, the scheme has a total of 350 beneficiaries.

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.

92
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 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 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
93
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
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 to the scheme; 38 of them from Bonny,
94
Finima, Rumuji, Ubeta, Amadi Ama and Ogbunabali, on
November 22, 2014, were enrolled into the Auto
Electrical/Electronics and Auto Mechanics training programme.
On October, 2015, 33 of the trainees graduated with
ANAMMCO In-Plant Certificate and Trade Test III which were
presented to them at a graduation ceremony in Port Harcourt.
Plans are already in progress to improve on the scheme and
expand to other spheres of knowledge in 2016.
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
95
(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 contacted as partners and
coordinators in the task of empowering the subsistence farmers
to effectively transition to commercial farming.
Following collaboration with these organisations, commercial
and contract farming in cassava, poultry and fishing is billed to
kick off in 2016 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 some big poultry producers and
other supply chain agents 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 aim is to use agriculture as the
new platform for employment and economic empowerment in
our host communities.
NLNG, SPDC and Bonny Kingdom signed a historic Memorandum of Understanding on 03 October 2015. Picture shows His Majesty, King Edward Asimini William Dappa Pepple III,
Perekule XI, Amanyanabo of Grand Bonny Kingdom in a firm handshake with Babs Omotowa, Managing Director of NLNG, over the MOU.

96