OPL 245 delivers great benefits to the Nigerian population
As shown by OpenEconomics research centre the development of the block would bring significant economic and social benefits to the Nigerian population. IT IS A FALSE CLAIM to state that they would be impoverished by the operation.
The OpenEconomics research centre showed that the development of the OPL 245 block, if initiated, would imply significant economic and social benefits for the Nigerian population.
In November 2018, the NGOs Re:Common, Global Witness, and The Corner House and Nigeria-based HEDA entrusted the company Resources for Development Consulting with an analysis of the impact of the OPL 245 operation on the Nigerian economy. According to this analysis, the agreement between Shell and Eni and the FGN would reduce Nigeria’s expected incoming taxes by a total of between $4.5 million and $5.9 million (Resources for Development Consulting – Government Revenues from OPL 245. Assessing the Impact of Different Fiscal Terms, page 27).
Il report del Resources for Development Consulting
In March 2019, Eni asked OpenEconomics, a spin-off of the Faculty of Economics at the Tor Vergata University in Rome, headed by Professor Pasquale Lucio Scandizzo, to assess the impact of OPL 245 on the Nigerian economy.
Over the course of the 25-year project, OPL 245 could lead to a cumulative $41 billion increase of Nigeria’s GDP of at 2011 prices, which means an average $1.64 billion increase a year, with a 32per cent capital return.
The country’s tax revenues would increase by $3.9 billion at present values, while indirect benefits would amount to $10.2 billion.
Despite the delays,and assuming production began in 2019, the estimated positive effects would still be largely achievable. In terms of social benefits, the OPL 245 project will help the country achieve the UN Sustainable Development Goals (SDGs). These include:
1.2 million children obtaining access to a five-year primary education cycle
200,00 new jobs
600,000 people receiving safe and sustainable energy for the first time
An increase in food consumption by poorer families, valued at more than $107 million
Settled the many pending court litigations between the Nigerian State, Shell, and Malabu
Established the conditions to finally develop Block 245
Introduced back-in rights1, which had not previously been included (worth more than $400 million)
Regarding the introduction of the back-in rights, as can be seen from the letter sent to Eni by the Nigerian Ministry of Oil on 14 June 2018, the Federal Government of Nigeria expressly declared that it wanted to convert the Oil Prospecting Licence (OPL) to an Oil Mining Licence (OML) so the field could be brought into production, and that it wanted to exercise the back-in rights, in confirmation of both their viability and the economic gain to be derived from them.
OpenEconomics – The public interest of Nigeria in signing the Resolution Agreement
1 Back-in rights represent the right to claim a 50 per cent share in the profits of the reservoir at any time without having to bear the corresponding industrial risk (borne solely by Eni and Shell). This clause allows direct access to the financial benefits derived from developing the block without any capital investment risk and, from an industrial perspective, provides access to local companies, allowing to pass on techniques and expertise to support the country’s development (the clause that provides for back-in rights is included in Article 11 of the Block 245 Resolution Agreement).
THIS WEBSITE (AND THE INFORMATION CONTAINED HEREIN) DOES NOT CONTAIN OR CONSTITUTE AN OFFER OF SECURITIES FOR SALE, OR SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OR IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR FOR THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON AS THAT TERM IS DEFINED IN THE SECURITIES ACT (A "U.S. PERSON"), AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH AN OFFER OR SOLICITATION WOULD REQUIRE THE APPROVAL OF LOCAL AUTHORITIES OR OTHERWISE BE UNLAWFUL (THE "OTHER COUNTRIES"). THE SECURITIES REFERRED TO HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR PURSUANT TO THE CORRESPONDING REGULATIONS IN FORCE IN AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE “OTHER COUNTRIES” AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO A U.S. PERSON UNLESS THE SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IS AVAILABLE. NO PUBLIC OFFERING OF SUCH SECURITIES IS INTENDED TO BE MADE IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR IN THE “OTHER COUNTRIES.”
In any Member State of the European Economic Area ("EEA"), the information contained in this website is only directed at and may only be communicated to persons who are "qualified investors" ("Qualified Investors") within the meaning of Article 2(e) of Regulation (EU) 2017/1129 (the "Prospectus Regulation").
The information to which this website gives access is directed only at persons (i) who are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) who have professional experience in matters relating to investments falling within Article 19(5) of the Order or (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this communication relates is only available to relevant persons and will be engaged in only with relevant persons, or in the EEA, with Qualified Investors. Any person who is not a relevant person, a Qualified Investor or otherwise permitted under applicable law or regulation to access the information, should not act or rely on the information contained herein.
Confirmation of Understanding and Acceptance of Disclaimer
These materials are for informational purposes only and are not directed to, nor are they intended for, access by persons located or resident in the United States, Australia, Canada, Japan or South Africa or any of the Other Countries. I certify that:
I am not resident of, or located in, the United States, Australia, Canada, Japan or South Africa or any of the Other Countries or I am not a U.S. Person; or
If I am a resident of, or located in, the EEA, I am a Qualified Investor within the meaning of Article 2(e) of the Prospectus Regulation; or
If I am a resident of, or located in, the United Kingdom, I am a Qualified Investor and a relevant person.
I have read and understood the disclaimer set out above. I understand that it may affect my rights. I agree to be bound by its terms and I am permitted under applicable law and regulations to proceed to the following parts of this website.
WARNING: the above certification constitutes a "self-certification" pursuant to Decree of the President of the Italian Republic No. 445 of 28 December 2000. False certifications are punishable by law.
You must read the following information before continuing.
The information contained in this segment of the website is not intended for, and must not be accessed or distributed or disseminated to persons resident or physically present in the United Kingdom, Canada, Australia, Japan or any other jurisdiction in which it is unlawful to do so. The information also is not intended for, and must not be accessed or distributed or disseminated to persons resident or physically present in Italy who are not “qualified investors” (investitori qualificati), as defined in Article 2, letter e) of Regulation (EU) 2017/1129 (the “Prospectus Regulation”) pursuant to Article 1, fourth paragraph, letter a) of the Prospectus Regulation as implemented in Italy by Article 35, paragraph 1, letter d) of CONSOB regulation No. 20307 of February 15, 2018.
By clicking the button below labeled “I agree”, you are certifying that (A) if you are in the European Economic Area, you are a “Qualified Investor”; (B) you are not accessing this portion of the website from the United Kingdom, Australia, Canada or Japan; (C) if you are a resident or physically present in Italy, you are a qualified investor as defined under the Prospectus Regulation as implemented in Italy by Article 35, paragraph 1, letter d) of CONSOB regulation No. 20307 of February 15, 2018; and (D) you are not located in a jurisdiction where it is unlawful to access this portion of the website.
You acknowledge that the information and statements contained in the document you are accessing on this website speak only as of the date of such document (or such other date(s) specified therein), and such information and statements may become inaccurate, stale and/or out-of-date thereafter and should not be relied upon for any investment decision.
You acknowledge that the materials on this website that you are accessing are confidential and intended only for you and you agree you will not forward, reproduce, copy, download or publish any of such materials (electronically or otherwise) to any other person if this is not in accordance with the law.
You acknowledge that the access to information and documents contained on this portion of the website may be illegal in certain jurisdictions, and only certain categories of persons may be authorized to access this portion of the website. If you are not authorized to access the information and document contained on this portion of the website or you are not sure that you are permitted to view these materials, you should leave this portion of the website.
You acknowledge that no registration or approval has been obtained and Eni Gas e Luce S.p.A. società benefit and its affiliates assume no responsibility if there is a violation of applicable law and regulation by any person.
By clicking the button below labeled “I agree”, you are confirming that you have read and understood the disclaimer above.
If you cannot so confirm, you must exit this portion of the website
Il report del Resources for Development Consulting
