LEX MUNDI CONFERENCE CORPORATE COUNSEL PANEL

Transcription

1 LEX MUNDI CONFERENCE CORPORATE COUNSEL PANEL Saturday May 12, 2001 Paper by Chief Sena Anthony Group General Manager Corporate Secretariat and Legal Division 1 1

2 BACKGROUND established by legislation in 1997 Has about 15,000 employees, 60 lawyers, Nine (9) fully owned subsidiaries 2 2

3 FUNCTIONS OF NNPC UPSTREAM - Exploration Development and Production - Marketing Crude oil and Natural gas DOWNSTREAM - Refining, Treating and Processing of Petroleum Products and Derivatives - Carrying out Research and Development 3 3

4 NNPC ASSETS UPSTREAM Average 56% in Oil and Gas in Joint Ventures operating in Nigeria for development of Oil and Gas concessions Has Production Sharing Contracts with the major International Oil Companies Concessions solely operated by NNPC subsidiary 4 4

5 NNPC/Shell/Elf/Agip ELF 10% AGIP 5% SHELL 30% NNPC 55% 5 5

6 NNPC/Mobil JV MOBIL 40% NNPC 60% 6 6

7 NNPC/Chevron JV Chevron 40% NNPC 60% 7 7

8 NNPC/Agip/Philips JV Philips 20% Agip 20% NNPC 60% 8 8

9 NNPC/Elf JV Elf 40% NNPC 60% 9 9

10 NNPC/Pan Ocean JV Pan Ocean 40% NNPC 60% 10 10

11 NNPC ASSETS cont d Nigerian LNG Limited $3.2 billion - 1 st and 2 nd Train 11 Bcm per year Gaz De France, ENEL of Italy, Botash of Turkey, Enagas of Spain and Transgas of Portugal 11 11

12 NNPC ASSETS DOWNSTREAM Four refineries with a combined refining capacity of 445,000 barrels per day 3000 kilometers Nationwide Petroleum Products Pipeline and Depots Network Has 36% Equity interest in ten Oil Service Companies Owns Majority Shareholding in some trading Joint Ventures 12 12

13 NNPC ASSETS cont d DOWNSTREAM OSO PROJECTS OSO NGL - 51% NNPC 49% MOBIL OSO CONDENSATE - 60% NNPC 40% MOBIL Total Cost About $2 billion WEST AFRICAN GAS PROJECT A Gas pipeline Project between NNPC, Chevron, Sobegaz, Sotegaz, and GNPC Gas to be transported by pipeline from Nigeria to three West African Countries for sale Negotiations are on-going 13 13

14 USE OF EXTERNAL COUNSEL - LOCAL BRIEFS All litigations / Arbitration matters Solicitors Jobs Handled by In-house 14 14

15 USE OF EXTERNAL COUNSEL FOREIGN BRIEFS All Litigations Matters are Firmed Out Directly by NNPC Project Matters Firmed Out Jointly With Foreign Partners Having a Leading Role 15 15

16 CRITERIA FOR SELECTION For PROJECTS Relevant Knowledge and Experience Experience in Project Financing Documentation Connection with Financial Institutions Understanding of Financing requirements by multi-lateral lenders and Inter-Creditor issues. Understanding of Capital and Debt market 16 16

17 CRITERIA FOR SELECTION cont d Competitive rates Time for completion Potential Conflict of Interest Ability to assist Sponsors and Close Deals Communication Facilities Understanding of Constraints Understanding of Multiplicity of Jurisdictions Availability and commitment of Senior Partners

18 CRITERIA FOR SELECTION FOR EXT. COUNSEL - LITIGATION/ARBITRATION Relevant Experience in Jurisdiction Reference from JV Partners (Potential Conflicts) Costs Availability of Senior Lawyers Large Chambers with diverse experience Connection with lawyers in other Jurisdiction 18 18

19 DESIRABLE TRAITS IN OUTSIDE COUNSEL Relevant Experience Experience in Managing Multiplicity of clients with diverse backgrounds in same transaction Size of Chambers Management of work to be done Timing of completion always critical 19 19

20 DESIRABLE TRAITS IN OUTSIDE COUNSEL - cont d DETERMINATION OF LAWYERS TRAITS Through CV/Biodata - information submitted about FIRM Reference from Third Party Interviews PRICE Not leading factor But important 20 20

21 DESIRABLE TRAITS IN OUTSIDE COUNSEL - cont d Decision on External Counsel Sole Decision in matters solely involving NNPC Joint Decision when JV Partners are involved - unanimous 21 21

22 DESIRABLE TRAITS IN OUTSIDE COUNSEL - cont d Process of Choice regulations/standards meets criteria stated above. Decision of In-Counsel - Absolute Ability to develop and maintain good working relationship with In-house counsel 22 22

23 CONCLUSION Thank You 23 23