OGRepublic August Edition

WOMEN IN ENERGY INTERVIEW
natural gas for its facilities in Cross River State.
Liquefied Natural Gas Sale and Purchase
Agreement: We advised LADOL FZE on
Liquefied Natural Gas Sale and Purchase
Agreement for its Gas to Power Plant under
development.
DETAILS is the Transaction Legal Advisers to the
Central Bank of Nigeria for the Nigeria
Electricity Market Stabilization Facility of $1.3
billion aimed at settling outstanding payments
due to market participants and service
providers and legacy gas debts owed to gas
suppliers.
We advising Lagos State Government on the
Light Up Lagos project to facilitate the delivery
of 3000MW to Lagos State through embedded
power generation and advised in drafting the
Lagos State Electric Power Sector Reform Law
(2018) as part of the Light Up Lagos project.
We advising LADOL Integrated Logistics on its
development of a 24-48MW Gas to Power
Plant for the distribution of power within the
LADOL Free Zone through an isolated urban
Off-Grid Independent Electricity Distribution
Network.
We advising Waltersmith Gas Company Ltd in
developing a 40-30MW Gas to Power Plant.
A d v i s i n g o n t h e p ro j e c t st r u c t u re ,
development and financing, preparing project
documents and liaising with relevant
government agencies.
EGINA Project Equity & Joint Venture
Structuring: We acted for LADOL FZE in
negotiating a $350 million JV with Samsung in
relation to Total’s first in-country fabrication
and integration of an FPSO for EGINA.
OGR: Do you see the success of DETAIL in
negotiating the EGINA FPSO's $350 million JV
between LADOL FZE and Samsung as a model
to be replicated elsewhere?
Dolapo: Most definitely. I think it shows that
with the proper contractual framework and
supportive regulatory framework in place,
projects like Egina can be replicated.
OGR: Regarding Detail's expertise in
Infrastructure & Public-Private Partnerships
(PPP) in Nigeria's major industries; What's
your perspective on developing a business
model to attract investment in energy
infrastructure projects in the country?
Dolapo: Energy Infrastructure Projects by their
nature are capital intensive and require long
term funding. They would therefore require
certain key pillars for business models to work
in the context of PPPs and they include:
3Having well structured projects and project
developers with a track record and proper
corporate structure.
Dolapo Kukoyi, Partner Detail Solicitors
3Credible off takers or buyers of the product or
service
3Cost reflective tarriffs or pricing framework
that ensure a reasonable return on investment
3Contractual framework that is resilient,
ensures proper risk allocation and mitigation
3On the part of government a clear and an
enabling legal and regulatory environment that
provides some ease and support for doing
business for investors.
OGR: What's the key factors hindering the
signing of Final Investment Decisions (FIDs) on
projects in Nigeria's energy sector?
Dolapo: I would say the opposite of some of the
issues raised above and a few more as listed
below:
3A lack of well structured projects and project
developers with a track record and proper
corporate structure
3Lack of credible offtakers or buyers of the
product or service
3A lack of cost reflective tarriffs or pricing
framework that ensure a reasonable return on
investment.
3A lack of a contractual framework that is
resilient, ensures proper risk allocation and
mitigation
3An unclear and an uncertain legal and
regulatory environment that provides some
ease and support for doing business for
investors.
3Inability to repatriate and convert foreign
capital (foreign exchange risk)
3Country risk which include more recently and
more apparent security risks .
Whilst some of the risks mentioned could be
within the control of investors. Investors would
be hesitant to reach final investment decisions
when they are risks that are out of their control.
Key principle for risk allocation is that parties
should be allocated risks that they are best able
to bear otherwise it affects the viability and
economics of the project.
OGR: What's your opinion on providing a one
time solution to the issues?
Dolapo: I don’t think there are actually one
time solutions to these issues. Whilst some
need to be resolved on the private side, some
need to be resolved by government. Both sides
need to make concerted efforts to do what they
need to do to ensure that the issues are
resolved, the regulatory and legal environment
is more investor friendly, project developers
need to pay more attention to developing
better structured projects so they can attract
the funding required. Advisers on the legal,
technical and financial aspects also need to do
their part to improve on deal flow, innovation
and risk mitigation on these projects. Funders
and Investors also need to be more flexible and
innovative. Most importantly all stakeholders
must continue to engage.
OGR: How has been your recent engagement
in renewable energy development across
Nigeria?
Dolapo: Its been very interesting. We have
worked with different players in the renewable
energy space from project developers like Cross
Boundary, Renewvia, Empower, Daystar who
are doing a lot in the Renewable Off grid and
mini grid space, to development financial
instituitions like the GIZ under their Nigeria
Energy Support Program who we have done a
lot with in the renewables space for mini grids,
to embedded generation to franchising.
We also work with FCDO under its Africa Clean
Energy Technical Assistance Facility supporting
states on Off grid solar.
Personally, I have served on the board of the
Renewable Energy Access Network (REAN)
Advisory Board and currently serve on the
Advisory Board of Kowry Energy a subsidiary of
Rolls Royce providing services to project
developers across Africa.
A lot of these engagements are impactful for us
and our clients as they help with increasing
access to energy across the country (Nigeria),
states and communities. The challenges still
remain some of the issues around having
sustainable business models in the energy
sector as discussed above.
OGR: Are you involved in any project on Energy
Transition?
Dolapo: I serve on the Sustainability
Commission of the Nigeria Economic Summit
Group where i lead the Thematic Group on
Climate Change, NDCs and Green Economy.
A lot of our engagements described above are
in the journey to energy transition. We are also
advising on gas projects which we think is the
fuel of the future in this part of the world.
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OIL AND GAS REPUBLIC I SPECIAL EDITION