Chevron Approves Major Expansion Of Huge Escravos Gas Project In Nigeria

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Nov. 18, 1997

Chevron today announced approval of a project to nearly double capacity of its newly commissioned associated-gas utilization project in Nigeria, operated by its wholly owned subsidiary, Chevron Nigeria Ltd. (CNL), in association with the Nigerian National Petroleum Corp. (NNPC).

"The Escravos Gas Project is the boldest initiative to end gas flaring in Nigeria," said Dick Matzke, president of Chevron Overseas Petroleum and a director of Chevron Corp. "Chevron and the NNPC embarked on this project because of its positive environmental ramifications as well as its economic benefits to Nigeria."

The project currently has daily production of 130 million standard cubic feet of dry gas, more than 8,000 barrels of LPG and natural gas liquids (NGL), and 2,000 barrels of condensate.

The newly approved second phase is due on stream in late 1999 at only one-fifth the cost of the initial project. It will have an additional capacity of 110 million cubic feet of gas per day, as well as about 6,700 barrels per day of liquids.

"We are extremely proud of this achievement," said Matzke, "and we attribute it to the diligence and determination of our employees in Nigeria." He noted that Escravos dry gas can be used to stimulate industries in Nigeria and in the West Africa sub-region.

The Escravos Gas Project is part of joint efforts by CNL and the NNPC to commercialize natural gas produced in association with oil production in Chevron's Nigerian operations. Prior to inauguration of the Escravos Project, gas had been flared (burned) at each production site.

Chevron currently produces 455,000 bpd, an increase of 10 percent over last year's production rate.

Escravos facilities gather gas from two Chevron-operated offshore fields, Okan and Mefa. The gas is compressed and piped onshore to a liquids extraction plant which removes LPG and condensate. The LPG is exported, while the condensate is blended with the Escravos crude oil stream. The remaining dry gas is sold to the Nigerian Gas Company for resale to end users in the local economy.

The first shipment of 30,000 metric tons of LPG (334,000 barrels of oil equivalent) was exported in late September to NGC Global Liquids Inc., a Houston-based company in which Chevron holds an interest. Chevron anticipates an additional two shipments will be exported by the end of this year.

"Thanks to the vision of the joint venture, clean-burning fuel is being put to good use, Nigeria's revenue base will be enhanced through the export of LPG, and there will be significant improvements to the environment," said Matzke.

Notes to Editors:

  • Chevron Nigeria Ltd. (CNL) is operator for the Escravos Gas Project joint venture, and holds 40 percent interest; the Nigerian National Petroleum Corp. holds the remaining 60 percent interest.
  • CNL also holds a 40-percent interest in concessions totaling 2.2 million acres, predominantly in the near-offshore regions of the Niger Delta.
  • Another Chevron subsidiary, Chevron Oil Company Nigeria Ltd. (COCNL), holds a 20-percent interest in six concessions covering 600,000 acres, with six producing fields operated by Texaco.
  • A third subsidiary, Chevron Petroleum Nigeria Ltd. (CPNL), oversees and manages new venture projects in Nigeria.

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