Marathon-led
Equatorial Guinea LNG project on track
Posted: 28 May 2004
Marathon Oil Corporation announced that it and Compania Nacional
de Petroleos de Guinea Ecuatorial (GEPetrol), the National Oil Company
of Equatorial Guinea, have achieved key milestones in the development
of the companies' liquefied natural gas (LNG) project in Equatorial
Guinea which remains on track to begin first shipments of LNG in
fourth quarter 2007.
All major commercial agreements including the upstream gas supply
agreement, the LNG concession agreement with the Government of Equatorial
Guinea and the shareholders agreement for the newly formed Equatorial
Guinea Train 1 operating company have been finalized.
In addition, the Government of Equatorial Guinea has approved and
published an LNG Decree Law securing the fiscal terms and conditions
for implementing the project.
GEPetrol will hold a 25 percent equity participation in the project
and will fund its participation through the dedication of oil revenues
from current oil production.
These funding arrangements are expected to be finalized in the
near future, at which time the companies will announce a final investment
decision.
The LNG project will produce a minimum of 3.4 million metric tonnes
per year. BG Gas Marketing Ltd (BGML), a subsidiary of BG Group
plc, will purchase production from this LNG project for a period
of 17 years.
Construction of the project is progressing on schedule with site
preparation, construction of accommodation facilities and equipment
mobilization fully underway.
For more information see http://www.marathon.com/
Posted by Richard Price,
Editor Pipeline Magazine
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