Exxon Mobil: Nigeria plan gas-to-liquid project

June 6th, 2008 - 2:40 pm ICT by Amrit Rashmisrisethi  

Nigeria is the world’s eighth biggest oil exporter , its four state-owned refineries have frequent production problems, due to mismanagement , also dealing with their annual fuel import approximately bill of $4 billion.With oil prices expected to continue hitting record highs, those costs are likely to rise. International oil companies are meanwhile using higher price assumptions for business planning, making a greater range of project viable.

“The project will use the latest technology to convert gas to liquid for petrol and will significantly reduce the nation’s importation of petrol,” Nigeria’s Oil Minister Odein Ajumogobia said in a statement.”It is in line with government’s aspiration to utilize the nation’s abundant natural gas resources,” he said at a ceremony launching two committees to oversee the project.

John Chaplin, managing director of Exxon’s subsidiary Mobil Producing Nigeria, said the project will involve the building of port facilities in the southeastern state of Akwa Ibom and said Exxon was committed to being a “catalyst for development”.Exxon Mobil said its chairman and chief executive, Rex Tillerson, had discussed the project with Nigerian President Umaru Yar’Adua during a visit in March.The company said the project was still in the planning stages and gave no details for production potential.

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