Task before NLNG new helmsman
Last week, a new helmsman, Mr. Tony Attah, was appointed as the Managing Director and Chief Executive Officer of the Nigeria Liquefied Natural Gas Limited, (NLNG). Attah’s appointment couldn’t have come at a better time than now when the company needed another thorough-bred professional in the oil and gas to continue with the legacies of the immediate former boss of the company, Babs Omotowa.
Attah, who is a professional also has the personality and is known to be imbued with the vision for innovation, service and determination which not only stood him out, but undoubtedly qualifies him as the arrowhead of the institution. The NLNG was established in 1989 and it is owned by four shareholders, namely, the federal government, represented by the Nigerian National Petroleum Corporation, (NNPC) with 49% stakes, Shell Gas BV, SGBV, 25.6%, Total LNG Nigeria Limited,15% and Eni International (N.A,) N. V. S. a. r. l 10.4%.
Part of the reasons for the impressive growth of the institution within few years was the selection of its leadership who had left lasting legacies. For instance, during the tenure of Omotowa, he among other things expanded and deepened domestic LPG market, built ultramodern engineering laboratories across the country as well as launched a $1 billion NLNG Vendors Financing Scheme.
He also provided Bonny Kingdom with a 25-year master plan and N3 billion yearly contribution for the provision of amenities. He initiated several programmes that have garnered attention at both national and international models. This is in addition to the securing of N60 billion support of the Board to partly fund the Bonny-Bodo Road linking Bonny Island to the mainland as part of the company’s Corporate Social Responsibility, (CSR), initiative.
During his tenure, NLNG also earned in excess of $40 billion in revenue and returned over $22 billion to Nigeria in dividend, taxes, feed gas purchases among others. The company under his watch became the highest corporate tax paying organisation in Sub-Sahara Africa and a major contributor to the Nigerian economy.
Stakeholders also said that since the NLNG is a personification of excellence and achievement, Attah’s appointment is characteristically a round peg in a round hole for such institution to continually put Nigeria into global relevance.
He comes to NLNG with a 28-year experience in the Nigerian oil and gas industry. A trained mechanical engineer and an MBA holder, Attah started his career in Sokoto Cement Company as a Maintenance and Operations Shift Supervisor. He joined Shell Petroleum Development Company, (SPDC), in 1991, working in various technical and management roles in Field Maintenance, Production Operations, Core Engineering and Major Projects Commissioning and Rotating Equipment Engineering among others sections. He was also once Head of Joint Venture Economics in Commercial.
Between 2005 and 2007, Attah managed the Soku Gas Plant as Asset Superintendent and Operations Manager of the initial NLNG gas supply as well as NLNG Train 3 construction works.
He oversaw the operationreadiness of other petroleum and natural-gas production projects in Sub-Saharan Africa and the start-up of a liquefied-natural-gas extraction system north of the Russian Pacific island of Sakhalin as the Regional Manager, Operations, Readiness and Assurance - Account manager for EPG Africa projects and Russia Sakhalin OR&A.
In 2009, he was appointed General Manager, Western Location & Sustainable Development - External Focus and in 2010, he became the Vice President (VP), Health Safety, Environment, Sustainable development & Corporate Affairs including Communications, Crisis and Reputation Management.
In 2013, he was appointed the Vice President HR Shell SubSaharan Africa, maintaining the The roles of Attah in NLNG will include sustaining the company’s top quartile performance in supplying LNG to the global energy market and advancing the company’s expansion programmes business competitive edge through talent development, resourcing and providing support to the business.
In 2014, Attah assumed the position of Managing Director of Shell Nigeria Exploration and Production Company, (SNEPCo), in addition to his role as VP HR. He was responsible for SNEPCo’s offshore business integration and leadership and managing a network of external and internal stakeholder.
He is a champion for social performance and sustainable development and has an impressive record of building relationships with various levels of governments in the Niger Delta, as well as with more than a thousand local communities.
The roles of Attah in NLNG will include sustaining the company’s top quartile performance in supplying LNG to the global energy market and advancing the company’s expansion programmes.
Apart from the assigned roles given the new boss of NLNG, stakeholders in the gas sector expect him to show visibility in the following areas. Building of Trains 7 and 8 The company recently announced that it has shelved the idea of building a single big train for liquefaction of natural gas after 10 years of Train 7 and $360 million expenditure committed therein.
The company also said it is considering building smaller Trains 7 and 8 with 4.3 million tonnes per annum capacity each. It said it will take Final Investment Decision on the two trains before the end of 2019. Stakeholders are of the opinion that the new NLNG boss should ensure that the trains come to fruition.
A gas sector expert, Mr. Ade Thompson said given the commitment of the current administration to explore the gas potentials of the country for its development, “it behoves Attah to use his experience, professionalism and determination to ensure that the terms of the Trains are strongly committed to,”. Revenue The NLNG recorded $6.8 billion in revenue for 2015, representing a shortfall of 40 per cent when compared with $10.8 billion of 2014.
The shortfall was blamed on the decline in revenue due to drop in global crude prices,but stakeholders are of the opinion that the new boss of the company should make conscious efforts to mitigate losses.
Deepening market
Currently NLNG’s cooking gas supply to the domestic market is 250,000 metric tonnes, while the supply level is 148,000 metric tonnes. Stakeholders advised that the current leadership of the company should explore avenues to further increase supply of the product in the domestic market with a view to increasing the consumption of cooking gas in Nigeria.
It is also expected that the new leadership will build on the laudable projects including the $1.6 billion financing for the construction and delivery of six modern Dual Fuel Diesel Electric, (DFDE), vessels, training of 600 Nigerians in ship construction and repairs, export of $10 million worth of goods and services to Korea for ship building and other initiatives that put the nation in a limelight through the NLNG. domestic LPG