Nigeria's NNPC to reduce its stake in Brass LNG

Reuters

15 August 2011

Nigeria's NNPC to reduce its stake in Brass LNG

Nigeria's state-oil company NNPC said on Monday it will reduce its stake in the long-delayed Brass Liquefied Natural Gas (LNG) project to 30 percent, from its current 49 percent, to secure much-needed investment.

The state-owned company has offered 4 percent of its stake to LNG Japan, which is jointly owned by trading firms Sumitomo (8053.T: Quote) and Sojitz (2768.T: Quote) and 3 percent to Itochu (8001.T: Quote) . A further 2 percent was offered to a joint venture between Nigeria's Sahara Energy and U.S.-based Sempra Energy (SRE.N: Quote).

NNPC said it has secured a $2 billion loan from a Japanese consortium, led by Japan Bank for International Co-operation, to help fund its share of the project.

"Everyone is looking to invest and we have invited others to join. It is a time everyone is looking to alternatives and the Japanese have been very interested in this project," an NNPC spokesman said.

He said stakeholders will make a final investment decision on the project in the first quarter of next year.

Brass LNG, whose shareholders also include multinational energy firms Eni (ENI.MI: Quote), ConocoPhillips (COP.N: Quote) and Total (TOTF.PA: Quote), opened construction bids last month for onshore and offshore works and for a sub-sea pipeline.