FG reserves 10% equity in EPCL shares to host communities, staff
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Mar 2, 2009, 19:36

The Federal Government has approved the sale of 10 per cent equity in the Eleme Petrochemicals Company Limited (EPCL), Port Harcourt, Rivers State, to the host communities and staff of the company while government retains five per cent shares.

According to a press statement issued by the Head, Public Communications of the Bureau of Public Enterprises (BPE) Mr. Chigbo Anichebe on Sunday March 1, “7.5 per cent of the 10 per cent goes to the host communities and EPCL staff will have 2.5 per cent". BPE further said that the decision was taken at 57th meeting of the National Council on Privatisation (NCP) held on Thursday, February 26, 2009 at Aso Villa, Abuja .

The statement added that the NCP, chaired by His Excellency, Vice President Dr Goodluck Jonathan, tasked its secretariat, the Bureau of Public Enterprises (BPE), to develop and recommend to it, appropriate mechanisms for acquisition and payment for the shares by the beneficiaries.

"In line with the philosophy of the privatisation programme to encourage the participation of host communities and Nigerian workers, approval was also granted that the shares be sold to the stakeholders at a discounted price", it added.

The statement recalled that 75 per cent of EPCL was sold to Indorama, the core investor, for the sum of $225 million in December 2005 while 10 per cent was sold to the Nigerian National Petroleum Corporation (NNPC) for $30 million.

The revitalised and privatised EPCL after the successful Turn-Around Maintenance has been continuously achieving higher levels of production. It is running at close to 90 per cent capacity and has also realised more than 80 per cent market share in Nigeria for HDPE, LLDPE and PP Raffia. With a total investment outlay of $385 million, Indorama has brought in one of the largest Foreign Direct Investments in downstream petrochemical sector, thus ushering confidence in the Nigerian economy and playing a major role in abolishing gas flaring in Nigeria. Future expansion plans of more than $ 2 billion by EPCL makes it a strategic investment in downstream petrochemicals sector.

In a related development, NCP also approved that the outstanding 10 per cent equity in Federal Superphosphate Fertiliser Company (FSFC) be sold to the existing staff of the company. The 96,634,434 shares are to be sold to the staff at the price of N0.804K per share, the unit price paid by the core investor in 2005

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