Centrica, StatoilHydro study Nigerian LNG projects

Wednesday, 07 November 2007

The agreement, for an initial 18 months with an option to extend, would see Centrica and StatoilHydro each taking a 37.5 per cent interest in the consortium, with CCC holding 25 per cent.


The feasibility study cost is expected to be about $10 million and will include analysis of potential feed gas, LNG plant locations including local infrastructure and end markets, Centrica said in a statement.


Centrica, which holds two exploration licences in Nigeria, said it was broadening its search for new sources of gas to supply its British Gas business and European and North American customers.


The UK company said its current Nigerian work programme would see exploratory wells in its offshore/onshore block 276 commence in 2008.


StatoilHydro in Nigeria is currently the operator of two deepwater licences, OMLs 128 and 129, in which OML 129 contains the Nnwa gas discovery.


The Norwegian company is also partner in five other deepwater licences, including the Agbami oil field.


Nigeria’s CCC has participated in the development of a range of major international oil and gas infrastructure projects, including petrochemical and LNG facilities.


“As part of our broader search for new sources of gas to supply our customers, this agreement provides us with an option to assess the viability of developing LNG projects in Nigeria, working alongside experienced partners,” said Sam Laidlaw, Chief Executive of Centrica.


“CCC is proud to be associated with this project not only because of the calibre and experience of its co-sponsors but also for the potential value it sees for Nigeria, in terms of the much needed internal infrastructure development that may be associated with the LNG project,” said Marwan Salloum, Vice President of CCC.