Brass fertiliser company signs $6b off-take deal with BP
Brass Fertiliser & Petrochemical Company Limited (BFPCL) has signed a $6 billion off-take deal with BP Oil International Limited as a major breakthrough in the development of the Phase One of the $4 billion Brass Fertilizer project.
The contract, which was signed at the London office of BP Oil International in December, is for exclusive offtake of methanol production from Phase 1 of the BFPCL project in Brass, Bayelsa State, over a period of 10 years.
The project is extremely strategic to the country’s agricultural and industrial sectors. It will contribute to the country’s self sufficiency in fertilizer and Methanol based industrial raw materials.
The company said in a statement on Monday, that the agreement is a key condition precedent for securing the foreign direct investment from the project Lenders and International Investors.
The project will boost employment generation as it employ about 15,000 workers during construction and 5,000 directly and indirectly during operation. It will also bring significant infrastructure development into the region and attendant multiplier effect on the national economy.
Speaking at the signing ceremony in London, the Executive Vice Chairman of BFPCL, Chief Ben Okoye, stated that attracting a major international player like BP bears testimony to the tremendous support for the project by the current administration, the Nigerian National Petroleum Corporation (NNPC) and the Central Bank of Nigeria (CBN), as well as the hard work and commitment of the project developers.
Okoye described the agreement as a significant milestone in the development of the project, as it paves the way for financial close on Phase 1 of the Brass Fertilizer project.
Okoye stated that the Brass Fertilizer project has been designed to accommodate the yearning of the Niger Delta people through the provision of employment and creation of business opportunities.
He expressed appreciation for the business relationship with BP and stated that the Shareholders of BFPCL are poised to meet soon, to take decisions on the project financial close.
The company said in a statement on Monday, that the project is designed to be built in two phases and Phase One which is expected to come on stream in 2020, will produce 1.66 million Metric Tonnes (MT) of Methanol and 1.3 million MT of Urea per annum. Phase One also includes a dedicated Export Jetty and a 300 mmscf/d Gas Processing Plant.
It added that the project has also secured 25 years 300 mmscf/d gas supply from The Shell Petroleum Development Company of Nigeria Ltd (SPDC-JV).
The Brass Fertilizer plant is located in Brass Island, Bayelsa State and on completion is expected to generate an annual turnover of $1.5 billion.