ChevronTexaco Awards FEED Contract for Angola LNG Plant

ChevronTexaco and its partners have awarded front-end engineering design (FEED) contracts for a five million-tons-per-year onshore LNG plant to be located near Soyo in northern Angola.

At a signing ceremony in Luanda, Sonangol, ChevronTexaco and their co-venturers in the Angola LNG Project -- BP, ExxonMobil and Total -- awarded the FEED contracts to Overseas Bechtel Inc., and a joint consortium of Kellogg Brown & Root Inc., JGC Corporation, and Technip U.S.A. Corporation.

A planned 15-month program of work is set to begin immediately. Following the completion of FEED and a final investment decision, it is expected that one of the two contractor groups will be selected to perform engineering, procurement, construction and commissioning (EPCC) activities for the project.

John Watson, president of ChevronTexaco Overseas Petroleum, noted that the FEED contract award and the recently announced establishment of the natural gas supply agreements are milestones for Angola LNG.

"Angola LNG is one of several current ChevronTexaco-led projects to commercialize natural gas resources in Africa and other parts of the world and is integral to the company's strategy to grow an integrated natural gas business," Watson said.

Watson added that in addition to the broader economic contribution the project will make to the country, Angola LNG expects to transfer technology and skills development through the creation of new jobs and business opportunities for Angolans.

As projects such as Angola LNG move forward, ChevronTexaco is developing a portfolio of LNG import terminal options to receive reliable and competitive supplies of natural gas for delivery to customers.

Speaking about the contracts award, Angola's Minister of Petroleum Desiderio Costa said: "This is a significant step forward on a project of national importance to Angola. It is clear to us that after the government approved a resolution that enabled Angola LNG to proceed, that steps are now being taken to make the project a reality." He added, "We continue to believe that Angola LNG will serve as a catalyst for Angola's reconstruction and growth by facilitating increased production of the nation's abundant oil and gas reserves and by supplying natural gas for local industrial development."

Syanga Abilio, vice president of Sonangol E.P., said: "We are extremely pleased to have reached this stage of the project. Angola LNG will be a world-class LNG facility, which represents a strategic opportunity for the co-venturers to commercialize Angola's vast natural gas resources and to reduce natural gas flaring in the country." He added that successful execution of FEED paves the way for the start of construction and creates valuable opportunities for local service provider involvement by Angolan companies.

Sonangol and ChevronTexaco co-lead the Angola LNG project. The project is set to be a joint development between the state oil company of Angola, Sonangol (22.8%), and local affiliates of ChevronTexaco (36.4%), ExxonMobil (13.6%), Total (13.6%) and BP (13.6%).