ExxonMobil pulls out of Angola LNG project

6 March 2007

Luanda, Angola, 30 Jan – Angolan state oil company Sonangol and ExxonMobil Monday in Luanda signed the agreements for the US company to sell its 13.6 percent stake in the Angola LNG project, Sonangol said in a statement.

According to the statement, ExxonMobil’s pulling out of the LNG project took place after Sonangol invited the US company to do so.

The statement added that ExxxonMobil had been asked to drop out of the project due to the stalemate it had created before the signing, on January 31, of the supply contract for the natural gas liquefaction factory, which the project’s participants are to build in Soyo.

With ExxonMobil dropping out the Angola LNG project will have four shareholders, BP, Chevron, Total and Sonangol.

The Angola LNG project, with an investment of US$4 billion, plans to produce, when it is concluded, 5 million cubic meters of liquid natural gas per year, and the first supplies are expected in 2010.

The Angola LNG project is located to the West of the city of Soyo (Zaire province), between the River Zaire and the Kwanda Base, and covers an are of approximately 240 hectares.

The proven natural gas reserves in Angolan are valued at 10.5 trillion cubic feet. (macauhub)