Nigeria National Petroleum Corporation, Eni, ConocoPhillips and
ChevronTexaco agree to advance Brass LNG Project
Posted: 5 November 2003
Nigerian National Petroleum Corporation (NNPC), ConocoPhillips
[NYSE:COP], Eni and ChevronTexaco (CVX) signed a Heads of Agreement
to conduct the front end engineering and design (FEED) work for
a new liquefied natural gas (LNG) facility to be constructed in
Nigeria's central Niger Delta.
The partners have agreed to form an incorporated joint venture,
to be known as "Brass LNG Limited," to undertake this
project.
This agreement follows completion of conceptual studies that assessed
the viability of a new onshore LNG facility in the region to be
built at the oil Brass Terminal operated by Nigerian Agip Oil Company
(NAOC). The FEED will be for two trains, each nominally sized at
5 million metric tons per year. Natural gas supplies for the facility
will come from substantial gas reserves within oil and gas fields
already operated by existing NAOC and ChevronTexaco joint ventures.
"We are extremely pleased to have reached this stage of the
Brass LNG project," said Dr. J.E. Gaius-Obaseki, Group Managing
Director NNPC. "This will be a world-class LNG facility and
an important and strategic opportunity for the co-venturers to reduce
gas flaring in Nigeria. Furthermore, it will be an additional opportunity
for Nigeria to monetize part of its vast natural gas reserves."
The executives representing ConocoPhillips, Eni and ChevronTexaco
have jointly announced that their participation in the project enables
their respective companies to be important players in helping to
meet the growing worldwide demand for clean energy, and strengthens
their long-term relationship with NNPC and the Federal Republic
of Nigeria.
The FEED studies are expected to be completed in 2004, and the
facility is targeted to be operational at the end of 2008. At the
same time, the companies are in the process of developing LNG marketing
strategies and plans. The primary market for the first train will
be the United States, where average daily sales volumes from this
project are estimated to be around 700 million standard cubic feet
of natural gas.
The Brass LNG Limited joint venture is made up of Nigerian National
Petroleum Corporation, the Nigerian state-owned oil company, and
ChevronTexaco, ConocoPhillips and Eni, all integrated major petroleum
companies with interests and ongoing projects around the world.
NNPC is an integrated oil and gas corporation engaged in adding
value to the nation's hydrocarbon resources for the benefit of Nigerians
and other stakeholders. The company has about 13,000 employees and
about 57 percent of all exploration and production oil assets and
reserves in the upstream joint ventures in Nigeria.
ConocoPhillips is an integrated petroleum company with interests
around the world. Headquartered in Houston, the company had approximately
55,800 employees, $81 billion of assets and $105 billion of annualized
revenues as of June 30, 2003.
Eni is an integrated major petroleum company with interests around
the world. Headquartered in Italy, the company had approximately
80,000 employees and an equity production in 2003 of about 1.6M
BOE/day.
Based in San Ramon, California, ChevronTexaco is the second-largest
U.S.-based energy company and the fifth largest in the world, based
on market capitalization. More than 53,000 ChevronTexaco employees
work in approximately 180 countries around the world, producing
crude oil and natural gas, and marketing fuels and other energy
products. The company is the largest U.S. investor in Sub-Saharan
Africa and, together with its partners, plans to invest up to $20
billion in the next five years in Africa-related energy projects.
For more information see http://www.conocophillips.com.
Posted by Richard Price,
Editor Pipeline Magazine
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