By Dennis Udoma, Uyo
The Nigerian National Petroleum Corporation (NNPC) will honour the Chairman, Senate Committee on Oil and Gas, Senator Bassey Albert today, Thursday, January 9, 2020 in Abuja for ending the dispute in the Escravos Gas To Liquid (EGLT) project with Chevron Nigeria Limited, CNL.
NNPC, in a letter to Senator Albert dated January 6, 2020 and signed by the Group Managing Director (GMD), Mr Mele Kolo Kyari said, the Senator’s contribution to ending a decade’s feud with the CNL, which crippled the unbundling of the sector was enormous.
He said, as a result of the lawmaker’s immense contributions to stability of the oil industry to boost investors’ confidence, the Senate Committee Chairman on Oil and Gas would be honoured with a special recognition during the award night.
Following the crisis, President Muhammadu Buhari in December 2019 had mandated the management of NNPC to conclude the settlement with Chevron Nigeria Limited (CNL), which a suit of agreement was brought to the fore, signalling the final settlement of the EGLT cost dispute.
It would be recalled that, investigation and negotiations that led to the signing of the deal, which dates back to 2015 was anchored by Senator Albert. The resolution of the impasse has yielded a 60/40 Joint Venture (JV) sharing ratio, as against 75/25 JV between Chevron and the Federal Government in the $11 billion EGTL project, with a settlement cost of over $6 Billion.
The 6th and 7th Senate had previously launched investigations into the rift, without any remarkable progress.
The deal will enhance energy security via domestication of EGLT diesel and further enable adequate utilization of gas, which in turn will earn the country foreign exchange.
The EGLT plant is a facility designed to convert rich natural gas into petroleum products, of which about 70% is approximately premium quality diesel.
The plant, it is believed will form a cornerstone of the energy ecosystem of Nigeria after the agreement.