Thank you very much. I am happy you took the initiative to confirm from the horses mouth,
Please join me in asking NNPC to account for the equity LNG that’s deducted from JV stock without recourse to group financials,
Thank you!
Oye @oyeolsakin11538So I just had a chat with a senior figure in NLNG 's Treasury and Kelvin is right. He said the LNG is primarily sold to the trading units of the shareholders, which are mostly (if not all) incorporated outside Nigeria, who then trade the gas as they see fit (though not directly lifted as equity as it obtains for oil JV's in Nigeria). So what NLNG declares as dividend is the normal profit based on sales to those entities vis cost of purchase from upstream players in Nigeria, less operating expenses. However the real value from LNG to the IOC's and presumably to NNPC, comes from the trading of LNG. So it's a worthy question to ask NNPC what happens to the gas its trading unit buys from NLNG.
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