News Post
Nigeria government investigates $10-B Chevron gas project
Chevron Nigeria Ltd. has been asked by a Nigerian senate committee to explain why an original cost estimate of $3 B for the Escravos gas-to-liquids (GTL) facility ballooned into a $10.3 B investment.
The 33-Mbpd Escravos GTL plant began production in mid-2014, producing mainly synthetic diesel. The plant supplies clean-burning, low-sulfur diesel fuel for cars and trucks, Chevron said.
The national gas committee chairman, Bassey Akpan, said at a meeting in the capital, Abuja, that the joint venture (JV) contract terms may have been violated because partner Nigerian National Petroleum Corp. (NNPC) was not consulted on running over budget.
Monday Ovuede, the director of the NNPC and Chevron Nigeria JV, said that Chevron had acted in a “reasonable and prudent manner” in carrying out the
project. He added that NNPC officials failed to attend several meetings and decisions had to be made to go ahead.
Sasol Ltd., which had a 27.5% stake in the venture, sold its holding to Chevron in 2008 after the
project’s cost more than doubled.
For subscriptions or a demo:
Sam Hassaniyeh
Subscription Executive
Phone: +44 203 4092242
For questions or to give feedback:
Thad Pittman
Senior Researcher
Phone: +1 (713) 525-4605
Download our brochure today!
Project News