press release

Chevron Press Release - Chevron Christens Vessel For LPG Export From Nigeria

SAN FRANCISCO, Oct. 24, 1996 -- Chevron announced today the christening of the world's first steel liquefied petroleum gas floating storage and off-loading (FSO) facility, the Escravos LPG FSO, in Nagoya, Japan. The steel vessel is designed to operate for 20 years without dry-docking.

Chevron Nigeria and its joint venture partner, the Nigerian National Petroleum Corp. (NNPC), initiated the Escravos Gas Project to reduce gas flaring and recover the gas and condensate from the company's offshore oil production, which is at its current peak production of 405,000 barrels per day.

"The Escravos Gas Project represents just the first phase in Chevron's plan to totally eliminate flaring from our operations in Nigeria," said Richard Matzke, president of Chevron Overseas Petroleum Inc.

Under the project, the associated gas from the first two fields -- Okan and Mefa -- will be recovered by a gas gathering and compression platform and pumped to an onshore gas processing plant. Once there, three products will be produced: condensate for blending with exported crude oil, natural gas for distribution within Nigeria, and liquefied petroleum gas (LPG) for export from the new FSO vessel.

The FSO will chill, de-pressurize, and store the LPG for export on LPG tankers.

The manufacturer, Ishikawajima Harima Heavy Industries Company, Ltd. (IHI) of Japan, bestowed the honor of christening the ship on Mrs. Billie Matzke.

The vessel will be towed to Nigeria for installation and commissioning in early 1997. Start up of the Escravos Gas Project is scheduled for May 1997.

Updated: October 1996