Bayelsa Development & Investment Corporation (BDIC) Plot 277, Isaac Adaka Boro Expressway, Kpansia-Yenagoa, Bayelsa State December 2, 2014 Press Release Bayelsa’s Brass Fertilizer & Petrochemical Project receives major boost…as oil prices drop to an all-time low The Bayelsa State Government’s bid to fast-track the establishment of the 30,000 job-creating Brass Fertilizer and Petrochemical Company through Bayelsa Development and Investment Corporation (BDIC) received a major boost today as the Director of the Brass Fertilizer Company Limited, Chief Olufemi Adesanya met with the Managing Director BDIC, Mr. Tamunoye Alazigha, reaffirming his willingness to partner the corporation and the Odioma host community to ensure success of the project. The meeting was part of efforts to leverage the influence of key stakeholders and engage them in securing relevant permits for the construction of the 40 km gas pipeline that will provide gas feedstock from the designated oil fields to the Gas Processing Plant. The Brass Fertilizer project is a $3.5bn dollar high-impact investment located in Odioma, Brass Island with a capacity to produce 5,000 Metric tonnes per day of Methanol, 2,200 Metric tonnes per day of Ammonia and 7,700 Metric tonnes per day of Urea for domestic and export markets. The Bayelsa Development and Investment Corporation holds some equity stake in the project which has Saipem as turn-key contractor. The success of the plant is dependent on the availability of gas and is estimated to gulp about 200mmscf of lean gas a day. Chief Adesanya and his team had the day before paid a formal visit to the Odioma Kingdom to interact and hob-nob with the youths, chiefs and elders in a bid to further deepen and strengthen existing fraternal bonds. The visit was coming months after the company signed an MOU with the host community in July 2014 in Government House, Yenagoa. During the visit, the BFCL team had thanked the host community for providing the land for the project, adding that” an equity interest of $15million had been allocated by the project sponsors to Odioma which will deliver long term benefits and development for the community’ and described it as the first of its kind from and indigenous company. While receiving the BFCL team, Mr Alazigha, a financial engineer with over 20 years’ experience in key global financial institutions such as JP Morgan, Deutsche Bank, BNP Paribas, US Trust Bank ,National Westminster Bank London and BGL Plc, commended the BFCL team for embarking on the trip, describing it as strategic and timely. Mr Alazigha noted that Bayelsa has the largest gas reserves in the country in excess of 18 trillion cubic feet, pointing out that investments will be geared towards leveraging the areas where the state has comparative and competitive edge in order to achieve the objective of transforming the state into a top 5 economy in Africa by 2020. He stated that the Corporation in line with its strategic mandate was exploring partnership opportunities with big players in the hydrocarbon value chain and big industries to catalyze development, and assured that everything possible was being done to ensure the smooth take-off of the project in view of its huge multiplier effects on the local economy. He stated that BDIC has set up a Community Relations Committee to liaise with the host community. “BDIC is revolutionizing Bayelsa,” he enthused. “We are irrevocably committed to improving the quality of life in Bayelsa. But the government, the local people and companies must all work together to guarantee success and that’s why we have not left the local community out in this projects. They are a key stakeholder… we believe that with a suitable investment strategy, leveraging our resources in providing critical infrastructure, we will, before you say John Donne, transform Bayelsa into the Dubai of Africa.” Speaking, Chief Olufemi Adesanya who was accompanied by the Community Liaison Officer, Barrister Fafah Stephen-Gon, disclosed that the company has advanced negotiations with Shell Petroleum Development Company on technical and commercial matters regarding the gas supply and have signed an MOU with the oil multinational to jointly develop two fields within OML 33 to deliver gas to the site as a prelude to the signing of a 25-year Gas Purchase Agreement. He said he was in the state to receive note of no objection for DPR permit to survey the Gas Pipeline route. He assured that the Brass Fertilizer project when completed in 2018 will not only create over 10,000 jobs during construction and over 5,000 permanent jobs during operations but also support jobs and services for Bayelsans thereby reducing poverty significantly. He added that the projected turnover is in excess of $1.5 billion and will bring in valuable foreign exchange to the state in line with the Federal Government’s Gas and Agricultural initiative to promote food security and reduce poverty whilst protecting the environment by 2020. He observed that the Urea Plant alone will meet about 25% of the country’s projected annual domestic demand of 10 million Metric tonnes while the Methanol plant will manufacture methanol products that are currently being 100% imported thereby enabling companies to set up plants in the state. He assured farmers that the domestic urea production will ensure availability of high-grade fertilizer throughout the planting season and called on all Bayelsans to rally round the administration of Governor Henry Dickson to ensure success of the project. Mr Tam Alazigha later led the team to the Honourable Commissioner for Lands and Survey Mr Furoebi Akene where the Commissioner assured them he would do everything possible for the company to get the note of no objection. Earlier the Community Liaison Officer, Brass Fertilizer Company Limited, Fafa Stephen-Gon while disclosing that they had also met with Engineer Dakio Horsfall of the Nigeria Inland Waterways Agency to secure the note of no objection, thanked the BDIC for living up to its promise to assist in facilitating the documentation process for the project. He thanked the Bayelsa State Government for the tremendous support and commitment shown to deliver the project on schedule. The Department of Petroleum Resources as part of the conditions for granting permit for survey of the pipeline route to the company had requested for note of no objection from NIWA, the state Ministry of Lands and Survey and the Nigerian Agip Oil Company. This latest move by the Bayelsa Development and Investment Corporation to diversify into vertically integrated job-creating industries that could support and promote its economy is coming on the heels of global slide in oil prices, depleting foreign reserves with the Central Bank of Nigeria intervening to devalue the naira. Signed: ……………………………………….. Famous Obebi Famous Special Assistant (Media) to the Managing Director
Posted on: Sat, 06 Dec 2014 10:51:21 +0000
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