Another Jordan oil shale agreement nears signing

Jordan Energy & Mining Ltd. is close to signing an agreement with Jordan for a 40-year commercial oil shale project, according to a presentation by Christopher Morgan of Jordan Energy and Mining at the Colorado School of Mines 30th Oil Shale Symposium, Golden, Colorado.

Oct 19th, 2010

Guntis Moritis
OGJ Production Editor

GOLDEN, Colo., Oct. 19 -- Jordan Energy & Mining Ltd. is close to signing an agreement with Jordan for a 40-year commercial oil shale project, according to a presentation by Christopher Morgan of Jordan Energy and Mining at the Colorado School of Mines 30th Oil Shale Symposium, Golden, Colo.

This will be the third commercial agreement signed by Jordan. Its first agreement was with a subsidiary of Royal Dutch Shell PLC, signed in May 2009 (OGJ, May 25, 2009, Newsletter) and the second was with Eesti Energia, signed in May (OGJ, Aug. 2, 2010, p. 70). Besides these commercial agreements, Jordan also has memorandums of understanding for oil-shale development with several other companies.

The Jordan Energy and Mining Al Lajjun project will mine and process the oil shale in two 500 tonne/hr Alberta Taciuk Process retorts. Miller said the project may start first commercial oil-shale production in 2014 at 15,800 b/d.

Initial capital cost of the project will be about $1.8 billion and the operating costs will be about $23/bbl, according Miller.

Currently Fushun Coal Mining Co. is commissioning a 6,000 tonne/day Alberta Taciuk Process retort in China’s Liaoning Province. The ATP Fushun retort will begin trial operations by yearend, according to a presentation at the CSM symposium by Shuyuan Li of the China University of Petroleum, Beijing. Li said besides the ATP Fushun retort, China has many other types of oil-shale retorts that in 2010 will produce about 4 million bbl of oil.

Contact Guntis Moritis at guntism@ogjonline.com.

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