Exxon Mobil Starts Up $1.3B NGL II Project in Nigeria

Nigeria, West Africa
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NGL II Project
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NGL II Project
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Exxon Mobil Corporation announced that its affiliate has commenced operations of a $1.3 billion project in Nigeria to produce and sell natural gas liquids, providing a new source of energy and economic benefits while reducing environmental impacts. Operated by Mobil Producing Nigeria Unlimited, an ExxonMobil affiliate, 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 include an offshore natural gas liquids extraction complex, more than 125 miles (200 kilometers) of new natural gas and natural gas liquids pipelines and 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 an 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 million standard cubic feet 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 VP 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."

The East Area NGL II development continues Mobil Producing Nigeria’s tradition of strengthening and expanding the capabilities of Nigerian companies, which provided in-country fabrication, logistics support and other services, as well as training and development of employees and contractors. These companies were involved in construction of the Bonny River Terminal expansion, installation of pipelines and fabrication of components for the offshore complex.

A key part of NGL II development’s national content strategy included the use of funding from Nigerian banks. Approximately $220M of the total project financing was completely arranged through Nigerian banks.

The natural gas liquids project follows the successful start-up of the East Area Additional Oil Recovery project in June 2006. Together, the two developments provide for recovery and commercialization of associated gas streams in the field and gas injection into existing reservoirs for recovery and production of additional oil volumes. These projects significantly reduce routine flaring, which helps meet the environmental stewardship goals of ExxonMobil and Nigeria.

The project is located approximately 17 miles (28 kilometers) offshore Nigeria and on Bonny Island, Nigeria. Mobil Producing Nigeria (51 percent interest) is operator of the project with co-venture partner Nigerian National Petroleum Corporation (49 percent).

The startup of the NGL II project brings the total of ExxonMobil worldwide startups to five this year, including Kizomba C Mondo (Angola), Volve (Norway), Starling (U.K.) and ACG Phase 3 (Azerbaijan).



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