Chevron Signs Deal for $1.3 bln Nigeria GTL Plant

ChevronTexaco said on Wednesday it had signed with its Nigerian joint venture partner technology agreements marking the start of work on its $1.3 billion Escravos Gas to Liquids plant.

Chevron and partner Nigerian National Petroleum Corp (NNPC) signed the deal with SasolChevron Holdings Ltd, the technology licensor, in Abuja on Tuescday, a Chevron statement said.

"These agreements will formally initiate the Engineering, Procurement and Construction phase of the project and put the EGTL (Escravos Gas to Liquids) project, valued at $1.3 billion on track towards completion by mid-2006," it said.

The project is one of the major initiatives by the NNPC/Chevron joint venture to end gas flaring and comercialise the gas being produced along with oil in its operations.

The Nigerian government has been pushing for such projects for the twin objectives of limiting environmental damage through the elimination of greenhouse gases and creating jobs for Nigerians.