Phillips withdraws from Ras Laffan GTL JV

Phillips Petroleum Co. has withdrawn from a gas-to-liquids joint venture with Qatar General Petroleum Corp. (QGPC) and Sasol Ltd. Phillips had been participating in the GTL plant project, to be built at Ras Laffan Industrial City, Qatar. QGPC and Sasol are reverting to a two-partner ownership per the original arrangement.


Phillips Petroleum Co. has withdrawn from a gas-to-liquids joint venture with Qatar General Petroleum Corp. (QGPC) and Sasol Ltd. Phillips had been participating in the GTL plant project, to be built at Ras Laffan Industrial City, Qatar. QGPC and Sasol are reverting to a two-partner ownership per the original arrangement.

Phillips has decided to refocus its activities in Qatar in light of the recent merger of its chemical business with that of Chevron Corp. QGPC and Phillips say they will jointly explore future opportunities in Qatar. However, both companies feel that Phillips should concentrate on areas involving its core expertise and proprietary technology, such as chemicals, LNG, and exploration and development.

QGPC and Sasol will hold interests of 51% and 49%, respectively, in the realigned GTL project. Both companies will proceed with the design and execution plans necessary for the project to enter into the front-end design and engineering phase before yearend.

They also say they will increase the project's capacity to 30,000 b/d of diesel and naphtha. This expansion will enable the project to make maximum use of the infrastructure available at Ras Laffan while providing greater opportunities to integrate with other Ras Laffan projects.

Phillips is involved in the construction of the Q-Chem Project and is assisting QGPC as project manager for the implementation of the NGL-4 project at Mesaieed. Commissioning for both these projects is expected in 2002.

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