Nigeria does not expect that it would get all of the $62 billion claim made against international oil companies in a dispute over sharing of profits from deepwater wells.

The government has started discussing with the oil majors over the disagreement but does not expect that they have the money to pay, Timipre Sylva, minister of state for Petroleum Resources said.

“Nobody can bring out that kind of money. We can’t get $62 billion. We can maybe get something out of them but we can’t get back $62 billion” Sylva said.

Africa’s largest oil producer is keen on passing into law an amended petroleum bill that guides how profit is shared between the government and oil firms in deep offshore exploration. The new law, which scaled through the Senate on Tuesday and now awaiting concurrence by the House of Representatives before its sent to the president for assent, adjusts the tax regime in the sector so that the government gets a higher take from profits.

Most of Nigeria’s crude is pumped by Royal Dutch Shell Plc, Exxon Mobil Corp., Chevron Corp., Total SA and Eni SpA, who operate joint ventures with state-owned Nigerian National Petroleum Corp. Under production-sharing legislation, the companies agreed to fund the development of deepwater oil fields on the basis that they would share profit with the government after recovering their costs.

It was part of the agreement that the government will negotiate a bigger share of profits once oil prices rose above $20 a barrel. Crude was selling at $9.50 a barrel when the law became effective 26 years ago, but the deal was never renegotiated when crude rose above the agreed price.

“We were supposed to negotiate and get some additional revenue. Unfortunately we slept on our right, so we didn’t take advantage of that. The money is gone because this money has not been kept in some cupboard. So of course it’s a lost opportunity” Sylva said.

Source: bnn bloomberg

The Nigerian Liquefied Natural Gas Company (NLNG) has invested over 30 billion US dollars (N10.8 trillion) to build gas facilities and other infrastructures in Bonny Island, Rivers, an official said.

Mr Tony Attah, Managing Director of NLNG disclosed this on Sunday at the end of week-long activities marking the company’s 20/30 Anniversary Celebration.

The News Agency of Nigeria (NAN) reports that NLNG used the occasion to celebrate its 20 years of operation in Bonny and 30 years of incorporation as a company.

The NLNG, Attah said, invested parts of the huge sum to build gas plants, known as Train 1, 2, 3,4, 5 and 6 as well as the ongoing construction of another Train 7 project.

“NLNG’s combined scale of investment in Bonny Kingdom is more than 30 billion dollars in assets, making it the most developed community in the Niger Delta.

“Our several accomplishments in the kingdom, ranged from our provision of modern road network, potable water and Finima Nature Park to residents of Bonny.

“Also, we invested in electricity that perhaps has made Bonny the only community in Nigeria with 99 per cent electricity and a preferred investors and tourist destination,” he said.

Attah further said the company has completed construction of Airstrip that could receive more than 60-passenger capacity aircrafts, making it one of the largest airstrip in Africa.

He said the company has provided N60.3 billion counterpart funding for the construction of N120.6 billion 34 kilometre Bonny-Bodo road project connecting Bonny Island to rest of the country.More in Home

“The ongoing road project, which we are co-sponsoring with the Federal Government, is expected to be completed within 48 months, thus triggering development and tourism in the area.

“We have also launched the malaria elimination initiative as well as the Bonny Community Health Insurance Programme in conjunction with Rivers State Government to provide affordable healthcare for the people.

“The company achieved these milestones due to the cordial and peaceful relationship existing between Bonny and Nigeria LNG in the last 20 years,” he added.

NAN reports that the managing director later laid foundation for the reconstruction of Bonny Consulate Building, a historic building once used by slave merchants to transport slaves abroad.

The managing director said the building would be equipped with a museum, library, movie hall, radio station, cafe, seminar/exhibition hall, souvenir shop and offices.

According to him, the company is poised to making Bonny Kingdom the Dubai of Africa and top business and tourism destination on the continent.

Speaking, the Amanyanabo of Bonny Kingdom, King Edward Pepple thanked NLNG for transforming the kingdom and assured the company of peaceful coexistence of residents.

“We thank this outstanding company (NLNG) for respecting the soul of this kingdom by positively touching on every aspect of our existence,” he added.

High point of the weeklong activities was presentation of 100,000 US dollars prize to Jude Idada, winner of the 2019 Children’s Literature and award of N132 million worth of scholarship to 12 graduates to pursue Master’s degrees in the United Kingdom.