Sonangol increases stake in Angola LNG project

ExxonMobil Corp. has sold its 13.7% stake in the proposed Angola LNG Ltd. project to Sonangol, the Angolan state-owned oil company, an ExxonMobil spokesman told OGJ.

Mar 8th, 2007

Uchenna Izundu
International Editor

LONDON, Mar. 8 -- ExxonMobil Corp. has sold its 13.7% stake in the proposed Angola LNG Ltd. project to Sonangol, the Angolan state-owned oil company, an ExxonMobil spokesman told OGJ.

Sonangol will now hold a 36. 4% stake, the same as project operator Chevron Corp. The other investors are Total AS and BP PLC, 13.6% each.

Angola LNG proposes building a 5 million tonne/year gas liquefaction plant at Soyo, Angola, that Chevron will also operate. Angola LNG will receive 1 bcfd of associated gas that otherwise would be flared from nearby oil fields and will produce LNG and related gas liquids products for export to European and US markets. It also will supply up to 125 MMscfd of gas for Angola's domestic use. ExxonMobil said it will remain involved with Angola LNG by supplying gas from Block 15.

Angola LNG reported it has awarded two contracts forwarding the project: A joint-venture of Boskalis International BV and Jan de Nul Dredging Ltd. received a contract to prepare the LNG plant site, and Overseas Bechtel Inc. will perform advance engineering and procurement.

The LNG partners are expected to make a final investment decision on the project later this year.

Earlier this year the Minister of the Ministry of Urbanism and Environment granted the project a license approving the environmental, social, and health impact assessment. The Council of Ministers also endorsed enabling legislation and project agreements necessary to progress Angola LNG and submitted these to the National Assembly for legislative authorization.

Contact Uchenna Izundu at uchennai@pennwell.com.

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