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Friday, June 10, 2016
Chevron has been called to the carpet by Nigeria’s Senate committee who wants to know why the costs of the company’s Escravos GTL plant are so high. The costs for the facility are now three times more than originally projected.
Escravos GTL now has a price tag of about $10 billion, which according to the committee is “astronomical” considering the original projections had the price tag at $3 billion.
According to the committee, Chevron may have violated the contract terms of the JV agreement with NNPC for the plant because it failed to consult the state-run firm on the increase in costs. However, according to a Bloomberg report, NNPC championed Chevron saying that the US major acted in a “reasonable and prudent manner.” NNPC officials failed to attend several meetings and decisions had to be made to move forward on the project.
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