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Wednesday, July 30, 2008
Image: Business Wire/ExxonMobil
ExxonMobil Corp. has begun operations on its gas project in Nigeria, the NGLII. The $1.3 billion natural gas liquids project was aimed at providing a new source of energy for Nigeria and a new way to commercialize the country’s substantial natural gas reserves. The ongoing project will also aid ExxonMobil in lessening natural gas flaring in line with the government’s zero flaring tolerance policy.
The East Area Natural Gas Liquids II project involves the recovery of 275 million barrels of natural gas liquids from associated gas produced in East Area reservoirs from Blocks OML 67, 68, and 70. Major components of the project consist of an offshore natural gas liquids extraction complex, more than 125 miles of new natural gas, and natural gas liquids pipelines. The project also included the expansion of the existing onshore Bonny River Terminal for fractionation of the liquids into commercial products and offloading.
The natural gas liquids project is part of ExxonMobil’s integrated approach to significantly reduce flaring in conjunction with the existing East Area Additional Oil Recovery project. The projects will significantly reduce flaring and improve oil recovery through reservoir pressure maintenance. In addition, the East Area NGL II project will produce at its peak about 50,000 barrels of natural gas liquids per day. It is designed to ultimately recover 275 million barrels of natural gas liquids and utilize 950 Mmcf of gas daily.
“The East Area NGL II project was completed ahead of schedule with outstanding safety performance and demonstrates ExxonMobil’s ongoing commitment to helping meet the world’s growing need for energy. In addition, this project represents the first time a major oil and gas joint venture in Nigeria has completed a financing package exclusively through Nigerian financial institutions,” said Mark Albers, senior vice president of Exxon Mobil Corporation.
“Working together with the Nigerian National Petroleum Corporation, we were also able to integrate innovative technical solutions into the project execution plan to significantly reduce flaring and maximize the value of the resource for our shareholders and the country of Nigeria.”
One of the key components of the project was including Nigeria’s local content policy by using funding from Nigerian banks. According to ExxonMobil, approximately $220 million of the total project financing was completely arranged through Nigerian banks.
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