Chevron Pulls Out from Olokola LNG, Nigeria

Chevron Nigeria Limited, operator of the Nigerian National Petroleum Corporation/Chevron Joint Venture, has withdrawn from the Olokola LNG (OKLNG) project in Nigeria.

Efforts to mature the project have not resulted in a final investment decision, a statement by the company said and that the withdrawal from the project took effect from July 31, 2013. According to the Chevron statement, NNPC was duly informed of this decision, and the divestment process is being managed in accordance with the provisions of the shareholders.

The chairman, managing director of CNL, explained that the decision to withdraw from OKLNG is based on a review of the Company’s investment portfolio, the lack of progress on the project, and a reprioritization of resources to focus on growing domestic gas supply.

The OKLNG project company was formed in 2007 by the Nigerian National Petroleum Corporation (NNPC), Chevron, Shell and BG Group. BG Pulled out from the project in June 2012 while Shell, as Chevron, pulled out in July 2013.

Initially, Chevron had a 19.5% equity in the project which it later increased to 22.74% after the BG withdrew from the project.

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LNG World News Staff, August 30, 2013; Image: BG