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Gold/Mining/Energy : Gasification Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (1403)	7/11/2008 4:21:16 PM
From: Dennis Roth	Respond to of 1740

Nigeria: Escravos Project - NNPC, Mobil Sign $220m Deal allafrica.com This Day (Lagos) 23 June 2008 Posted to the web 23 June 2008 Chika Amanze-Nwachuku Lagos The Nigerian National Petroleum Corporation (NNPC), Mobil Producing Nigeria (MPN) Limited and a consortium of Nigerian banks at the weekend in far away London signed a financing agreement to the tune of $220 million for the completion of the Escravos Gas to Liquid Project. The state-owned NNPC had in 2004 signed a $1.275 billion-agreement with MPN for expansion of the project in collaboration with some Nigerian banks, Overseas Private Invest-ment Corporation, and Credit Suisse of London, who contributed $575 million to the project. According to a statement by Dr. Livi Ajuonuma, spokesman of the corporation, NNPC has 49 per cent equity, while MPN holds 51 per cent equity in the project tagged, NGL II, NNPC, which will produce about 40,000 barrels of Gas to Liquid when it comes on stream. He said the consortium of the Nigerian banks would contribute the 220 million-dollar loan to finance the final segment of the project, adding that the money is repayable after 25 years. He said the Group Managing Director (GMD) of NNPC was represented by the Group Executive Director, Exploration and Production, Mr. Chris Ogiewonyi, at the signing ceremony. Mr. John Chaplin, Chief Executive of MPN, signed on behalf of his company, while Mr. Ayo Adedayo signed on behalf of the consortium of banks. Speaking at the event, Ogiewonyi said the alternative funding for the project was imperative in order to complete the project that was started in 2004. He said the NNPC was committed to encourage Nigerian banks to participate in energy projects financing designed to raise the nation's local content level in that regard. "The project financing plan is in line with government aspiration to end gas flaring and monetise gas," Ajuonuma said. He noted that the project would contribute significantly to the reduction of gas flaring and associated cabon-dioxide emission in addition to the creation of jobs for Nigerians. He called for more investment in the oil and gas sector given what he described as the current transparent and accountable way of doing business in the sector. On his part, Chaplin expressed delight to be part of the project and said MPN would do everything humanly possible to achieve the goals of the project. "We in MPN will continue to prioritise our investment in the country as well as assist the community where we operate," he said. The representative of the banks and the head of Standard Chartered Bank (International), Adedayo, described the event as a landmark achievement for the banking saying this is the first project finance fully sponsored by the Nigerian banks. The NNPC had in September 2000, announced the launch of an initiative to convert natural gas into petroleum fuels and to significantly reduce the amount of gas being flared in their Nigerian joint venture operations. Under the initiative, it said $2 billion would be invested in two projects: the Escravos Gas Project Phase 3 and the Escravos Gas to Liquids development, which had been targeted for completion in 2005. Former President Olusegun Obasanjo and President Thabo Mbeki of South Africa were present at the kick-off of the project. When the project was conceived, its Phase 3 was said to be capable of processing nearly 400 million cubic feet a day of gas that is currently produced along with crude oil and then flared. The plant will extract about 15,000 barrels a day of natural gas liquids and prepare the natural gas as feedstock for the Escravos Gas to Liquids facilities, which will produce about 33,000 barrels per day of clean fuels, virtually free of sulfur, nitrogen and other pollutants. These fuels will be marketed primarily in Europe, allowing Nigeria to derive revenue from its large natural gas reserves, which are the eighth largest in the world. The first phase of the Escravos Gas project was inaugurated in May 1997 and processes about 150 million cubic feet per day of gas for domestic and regional markets. The second phase is expected to come on stream later this year, raising the processing capacity to about 300 million cubic feet a day of gas that otherwise would have been flared.