New Partners Join the Angola LNG Project

Angola's state owned oil company, Sonangol, and ChevronTexaco announced that TotalFinaElf, Norsk Hydro, BP Exploration (Angola) Limited and Esso Angola Gas Company Limited, a subsidiary of Exxon Mobil Corporation signed a participation agreement to enable the parties to conduct joint activities to progress a proposed Liquefied Natural Gas (LNG) project in Angola.

Each of the new participants received a 12 percent share of the project with Sonangol retaining 20 percent and ChevronTexaco with 32 percent. Speaking at the partnership agreement signing ceremony at Sonangol's office in Luanda, John Gass, managing director for ChevronTexaco's Southern Africa business unit with responsibility for the company's operations in Angola said: "This is a positive step forward. We are pleased that these distinguished companies have joined with us and we look forward to their valuable contributions to the development of this significant project."

Adding his comments, Manuel Vicente, Sonangol's CEO, said: "I consider this project to be very important for Angola. The project will be the keystone solution for capturing Angola's flared gas. In addition, this project will have a considerable social impact on Angola with the creation of direct and indirect employment, both in the construction stage and the production stage."

To date, the Angola LNG project has been a joint development between Sonangol and ChevronTexaco. Initially, the plant configuration will be based on a one-train design with a throughput of four million tons of LNG per annum. Further joint studies will now be carried out to identify the optimal solution.