Equatorial Guinea Aims to Boost Alen Unit Gas Production
Marathon Oil Corp. reported Monday afternoon that it has signed a definitive agreement to process third-party natural gas through existing liquefied petroleum gas (LPG) and liquefied natural gas (LNG) facilities in Punta Europa, Equatorial Guinea (EG).
“This agreement is a significant step toward solidifying Punta Europa as a cornerstone component of the EG Gas Mega Hub for the potential development of local and regional natural gas,” Mitch Little, Marathon Oil executive vice president, said in a written statement emailed to Rigzone.
Marathon operates the Alba gas/condensate field offshore EG. Through wholly owned subsidiaries, the company is the majority shareholder and operator of the integrated gas business at Punta Europa. Along with Noble Energy Inc. and Sociedad Nacional de Gas de Guinea Ecuatorial (Sonagas G.E.S.A.), Marathon owns the LPG processor Alba Plant LLC. It also owns the EG LNG production facility with Sonagas, Mitsui & Co. Ltd. and Marubeni Gas Development UK Limited.
The definitive agreement that Marathon and its partners signed with the EG government and Alen Unit partners facilitates processing of gas from the offshore Alen field through the LPG and LNG facilities. Noble operates the Alen Unit, which includes the Block O and Block I contractor groups, Marathon stated. Block O members include Noble, Glencore Exploration Limited and Compania Nacional de Petroleos de Guinea Ecuatorial (GEPetrol). Block I members include Noble, Glencore Exploration (EG) Limited, Atlas Petroleum International Limited, Gunvor Resources Limited and GEPetrol.
“With tie-ins available and minor modifications under way at the Alba Plant, capital requirements are minimal,” stated Little. “Importantly, the project leverages existing capacity of the world-class Alba Gas Plant and EG LNG facilities, and all parties benefit from exposure to global LNG prices.”
Marathon noted that it expects first gas sales from the Alen Unit in the first half of 2021, adding that gas sales will use available processing capacity not required by the Alba field. Moreover, the company stated that it will maintain market exposure through a mix of profit-sharing and tolling.
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