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Chevron Withdraws From Nigeria LNG Plant Citing Lack of Progress

Aug. 29 (Bloomberg) -- Chevron Corp. pulled out of Nigeria’s Olokola liquefied natural gas plant venture, becoming at least the second partner to withdraw from the project.

The decision to divest the 23 percent holding is based on “a review of our investment decision, the lack of progress on the project, and a reprioritization of resources to focus on growing domestic gas supply,” Andrew Fawthrop, chief executive officer of the U.S. oil company’s Nigeria unit, said today in an e-mailed statement from Lagos, the commercial capital.

Tumini Green, a spokeswoman in the capital Abuja for state-owned partner Nigeria National Petroleum Corp., didn’t immediately respond to two phone calls seeking comments.

Last year BG Group Plc withdrew from the OK LNG project, formed by NNPC in 2007. The remaining partner, Royal Dutch Shell Plc, pulled out in July, according to the Chevron statement. Shell’s spokesman in Lagos, Precious Okolobo, declined to comment when reached today by Bloomberg News.

NNPC has been informed of Chevron’s decision, and the divestment process is being managed in line with the terms of the shareholder agreement, according to the statement.

Chevron, Nigeria’s third-biggest energy producer, said it remains committed to Nigeria and continues to pursue other investments in the West African nation’s oil and gas industry.

To contact the reporter on this story: Elisha Bala-Gbogbo in Abuja at ebalagbogbo@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net

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