Petroleum Africa
Find us on: 
Wednesday, April 26, 2006
A Japanese joint venture has decided to participate in Nigeria’s Olokola LNG project. The consortium, made up of Japan’s Sojitz Corp. and Sumitomo will join state-owned NNPC, Chevron, Shell Gas & Power Developments BV, and the BG Group.
According to sources in Nigeria, a basic agreement has been reached for LNG Japan, the Sojitz and Sumitomo joint venture, to acquire 3% of the stock in the operating firm from NNPC. LNG Japan, which plans to sell its 330,000-ton per year share of LNG from the project to markets in the US and Europe, will be responsible for about $218 million of investment capital, equivalent to its interest in the operating company.
The first stage of the project is to build facilities capable of producing 11 million tons per year of LNG by 2010, with total costs expected to reach $7 billion. In early April, NNPC approved the award of a $14.5 million contract for the front-end engineering design of Olokola LNG to Delta Afrik Engineering Ltd., jointly owned by Deltatek Engineering Ltd. and Worley Parsons. Delta Afrik also will construct major production platforms, living quarter platforms, and associated flares and bridges for Olokola LNG.
In April 2005, Chevron Nigeria Ltd. signed a memorandum of understanding with NNPC, BG, and Shell Gas & Power to jointly conduct and evaluate a feasibility study of the potential Olokola LNG project.
Shell said the project is the outcome of two studies conducted by Chevron, BG, and Shell, which proposed to NNPC the development of their respective greenfield LNG projects in the Olokola area due to their natural deepwater berths and other technical reasons. An integration model was selected to include a four-train, 20 million ton per year project; joint ownership of all facilities, except for the individual trains; single technology and a single operator; a common engineering, procurement, and construction contracting strategy; and an agreement that individual train owners buy their own feed gas and sell their own LNG.
Shell said there will be a common facilities company to be known as OKLNG, as well as an operating company, OKLNG OpCo.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
