NNPC Targets 20% in Fertilizer Company

By July 24, 2018 Investment News

The Nigerian National Petroleum Corporation (NNPC) is billed to take 20% equity in the project Nagarjuna Fertilizer Project to provide the gas feedstock.

The corporation’s Group Managing Director, Dr. Maikanti Baru, however on Monday charged members of the Joint Management Committee (JMC) of the project to work hard to achieve early Final Investment Decision (FID) for eventual take-off of the project.

NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, disclosed this in a statement.

According to the statement, the “Nagarjuna Fertilizer Project in Nigeria is designed to produce 2.8 metric tonne per annum (MTPA) of Urea and 0.22MTPA of Ammonia and NNPC is billed to take 20% equity in the project and provide the gas feedstock.”

Speaking recently while inaugurating the JMC made up of members drawn from Nagarjuna Fertilizer and Chemicals Nigeria Limited, a subsidiary of the India-based Nagarjuna Group, and NNPC, Dr Baru noted that the President Muhammadu Buhari administration was keenly interested in diversifying the economy by growing the agricultural sector and that the early take-off of the Nagarjuna Fertilizer Project would be a boost to that aspiration.

“It is my expectation that the negotiations with the Financiers and other prospective investors will be concluded in order to meet the FID target of March 2019. With the composition of the Joint Management Committee, I believe the target FID date will be achieved. The key message to the Joint Management Committee therefore is to ensure that we conclude the pre-FID activities in good time to achieve the FID target”, the GMD stated.

He said the project was in tandem with the objectives of the Federal Government’s 7-Big Wins and the corporation’s 12-Business Focus Areas to aggressively commercialise the nation’s enormous gas resources through gas-based industrialization and congratulated the Management of Nagarjuna for its tenacity and acquisition of a new project site in the Ikot Abasi Oil and Gas Free Trade Zone.

Members of the JMC are: Mr. Kovvuri H. Dharudu, Chairman; Ms. Blessing Arinze (Nagarjuna); Mr. Moses Oladejo (Nagarjuna); NNPC Chief Financial Officer, Mr. Isiaka Abdulrazaq; NNPC Chief Operating Officer, Gas and Power, Engr. Saidu Mohammed; Managing Director, Gas & Power Investment Company (GPIC), Mr. Husaini El-Yakub; and Group General Manager, Corporate Planning & Strategy, Mr. Bala Wunti.

Source: The Nation