press release

Chevron Press Release - Chevron And NNPC Reach Milestone In Nigeria In Development Of Escravos Gas Project

SAN FRANCISCO, March 23, 1995 -- Chevron reached a significant milestone today in the development of the Escravos Gas Project as the company awarded four contracts for construction of the onshore and offshore facilities for the project.

The contracts are valued at approximately $320 million (U.S.). Chevron Nigeria Limited holds a 40 percent interest in the project, and is operator for itself and its joint-venture partner, the Nigerian National Petroleum Corporation (NNPC), which holds the remaining 60 percent interest.

Richard Matzke, president of Chevron Overseas Petroleum, said today at signing ceremonies in Lagos that construction on the facilities will begin immediately. "The Escravos Gas Project is a testimony to the commitment of the long-term relationship between Chevron and the NNPC, and a significant milestone in the development of Nigeria's natural resources," Matzke said.

The Escravos Gas Project (EGP) represents Phase One of a multi-phase gas utilization program begun in 1992, and targeted for completion in 2006. EGP will gather and process natural gas now being flared in the Okan and Mefa offshore oil fields, where it is produced in association with crude oil. Phase One is expected to come onstream in 1997.

"The gas utilization program will substantially broaden Nigeria's revenue base through the economic utilization of part of Nigeria's gas reserve," said Bill Edman, managing director of Chevron Nigeria Limited, "which for this joint venture alone is in excess of 17 trillion cubic feet." Edman noted that the Escravos project will "extend the frontiers of Nigeria's oil industry," by utilizing the associated gas to generate electric power, and exporting the liquefied petroleum gas.

The four contracts cover construction of most of the equipment necessary for start-up of EGP: the onshore and offshore facilities, the compressors, and the floating storage and off-loading vessel.

"The Escravos Gas Project is the first major effort by an oil company to address the environmental concerns of offshore gas flaring in Nigeria," said Chief M. A. Olorunfemi, Executive Director of the National Petroleum Investment and Management Services.


Attachment to Chevron Press Release

March 23, 1995

Offshore facilities Consortium of ABB Randall Corporation and Entrepose Montalev, S.A. $70 million Randall: project management, engineering, procurement, module fabrication and transportation.
Montalev: construction of tanks, spheres, onshore facilities and site works
Offshore facilities Consortium of Saipem, S.p.a. and ABB Lummus Crest Inc. $125 million Saipem: project management, transportation, installation, hook-up and pipelines
ABB Lummus Crest: engineering, procurement and fabrication
Floating Storage and Off-loading vessel (FSO) Escravos FSO Inc., a subsidiary of Mitsui & Comapny $95 million MODEC: project manager
IHI: vessel construction
SOFEC: mooring system design
McDermott: installation of the FSO
Compressors Kawasaki Heavy Industries Inc. $30 million Manufacture of the compressors
Solar: manufacture of turbine drivers

Updated: March 1995