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NIGERIA LNG (FISCAL INCENTIVES GUARANTEES AND ASSURANCES) (AMENDMENT) ACT
[18th November 1993] Commencement.
Amendment of 1990 No. 39.
THE Federal Government hereby decrees as follows:-
Amendment of section 6.
(a) in subsection (8) by substituting for the words “all the ordinary shareholders of the Company” the words “one or more of the share holders of the Company”;
(b) by inserting immediately after the existing subsection (9), a new subsection (10) as follows, that is –
“(10) The provisions of the National Shipping Policy Decree 1987, as amended and the regulations made thereunder shall not be applicable to the Company, its contractors, sub contractors, its customers or a shipping company referred to in subsection (8) of this section.”
Amendment of section 7
(a) in subsection (1), by substituting for the words “and other duties including but not limited to port surcharges” the words “taxes and all other duties, levies, charges and imposts of a similar nature”;
(b) by inserting immediately after subsection (5) thereof, the following new subsections, that is –
“(6) The provisions of the Pre Shipment Inspection of Imports Act, as amended and regulations made thereunder requiring pre-shipment inspection, the submission of reports in connection therewith under the Comprehensive Import Supervision Scheme and the “Form M” Procedures, the “Form C- 3.1 Procedures or such other similar procedure of the Central Bank of Nigeria, shall not apply in relation to the importation of a plant, a machinery, goods and materials for use in the construction of or incorporation of a plant, jetty, shipping, transmission facilities and ancillary works used in the Company’s business and in respect of any major spare parts needed in the event of a plant failure and ordered within two years of the commissioning of that plant for which the spare part is ordered.
(7) No export duties, taxes or other duties, levies, charges or impost of a similar nature shall be payable or imposed on the export of liquefied natural gas or other hydrocarbons produced by the Company.”
Amendment of the Second Schedule
(a) in paragraph 1, by substituting for the existing paragraph 1 a new paragraph 1 as follows, that is –
“1. The Federal Government of Nigeria (in this Act referred to as “the Government”) in recognition of the magnitude of, and in consideration of the investments which shall have to be made in order to prosecute the Venture described in the shareholders’ contract dated 19th May, 1989 between the Nigerian National Petroleum Corporation, Shell Gas BV, CLEAG Limited and Agip International BV, as amended from time to time (such shareholders’ contract, as so amended in this Act referred to as “the Contract”) hereby grants to the Company, its successors and to each of the shareholders from time to time (in their capacity as such), the Guarantees, Assurances and Undertakings the following hereunder. These Guarantees, Assurances and Undertakings shall have effect from the date hereof and so long as the Company or any successor thereto, is in existence and carrying on the business of liquefying and selling liquefied natural gas and natural gas liquids within and/or outside the Federal Republic of Nigeria.”;
(b) in paragraph 13, by inserting immediately after the existing sub-paragraph (c) a new paragraph (d) as follows, that is –
“(d) the prompt registration and certification by the National Office for Technology Acquisition and Promotion of all contracts for the transfer of technology to the Company by its advisers, contractors and sub-contractors in accordance with the National Office for Technology Acquisition and Promotion Act, accordingly the provisions of subsection (2) of section 6 of the said Act shall not be applicable to any of the afore-mentioned contracts.”;
(c) in paragraph 18(1), by –
(i) substituting for the existing sub-paragraphs (a), (b) and (f) the following new sub-paragraphs, that is –
“(a) the capital dredging of the Bonny bar channel by the Company and the maintenance dredging by Government;
(b) Government’s responsibility to provide and maintain the navigational aids for the Bonny bar channel;
(f) the Company’s responsibility to provide, operate and maintain the tugs, mooring boats and patrol crafts required for the Venture; and
(g) if, in the Company’s opinion, the activities for which Government is responsible pursuant to sub-paragraph (a) (b) and (c) of this paragraph are not carried out in such a manner as to satisfy the Company’s requirements, the Company shall have the right to arrange for the necessary activities to be carried out.”,
(ii) inserting immediately after the existing sub-paragraph (2) thereof a new sub-paragraph (3) as follows, that is –
“(3) The capital costs incurred by the Company in fulfilling the responsibility allocated to it pursuant to sub-paragraph (1) (a) of this paragraph and in providing navigational aids for the Bonny bar channel and traffic control facilities to be used by Nigerian Ports PLC on behalf of Government in fulfilling Government’s responsibilities pursuant to sub-paragraph (1) (b) and (c) of this paragraph and any costs incurred by the Company for activities under taken by the Company pursuant to sub-paragraph (1) (g) of this paragraph shall be borne by the Nigerian Ports PLC and shall be reimbursed to the Company on terms to be agreed between the Nigerian Ports PLC and the Company in good faith.”;
(d) in paragraph 19, by –
(i) substituting for the full stop a colon, and
(ii) inserting immediately thereafter a proviso as follows, that is –
“Provided that no conditions shall be attached to any such grant requiring the Company to generate and supply electrical power for any purpose other than to meet the requirements of the Venture for power supply to the LNG plant, the Company’s other facilities area at Bonny and the Company shall not be obliged to supply power to the Nigeria Electric Power Authority for local distribution or otherwise.”;
(e) in paragraph 20, by substituting for the existing paragraph a new paragraph as follows, that is –
“20. The Company shall at its own expense provide itself, in accordance with the Company’s Comprehensive and Integrated Telecommunications Network plan, with local telephone and telex services and facilities for international leased circuits and satellite links between its loading terminal near Bonny and ships at sea transporting liquefied natural gas produced by the Company as well as the receiving terminals of the Company’s overseas customers, provided howsoever that where these services and facilities can be provided by the Nigerian Telecommunications Plc in a timely fashion so as to fulfill the requirements of the Venture, the Company shall use reasonable endeavours to use the services and facilities of the Nigerian Telecommunications Plc.”
MADE at Abuja this 18th day of November 1993
GENERAL SANI ABACHA
Head of State, Commander-in-Chief of the Armed Forces Federal Republic of Nigeria.
(This note does not form part of the above Decree but is intended to explain its purport)
The Decree amends the Nigeria (Fiscal Incentives, Guarantees and Assurances) Decree 1990 to provide, among other things, that the Company shall not be subject to the provisions of the Pre-Shipment Inspection of Imports Act and thereby give greater effect to the general purport of the Decree.