Nigeria Senate Probes Chevron’s $10 Billion Gas Project
- Senators say project cost about three times more to complete
- Chevron gas-to-liquid plant has capacity for 33,000 barrels
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A Nigerian Senate committee has asked Chevron Nigeria Ltd. to explain why a gas-to-liquids joint venture with the state-run petroleum company cost about three times more to complete than initially estimated.
The $10.3 billion invested in the Escravos facility was “astronomical,” given it was supposed to be built for a cost of about $3 billion, Gas Committee Chairman Bassey Akpan said Tuesday at a meeting in the capital, Abuja. The JV contract terms may have been violated because partner Nigerian National Petroleum Corp. wasn’t consulted on running over budget, Akpan said.