Royal Dutch Shell (LSE:RDSB)
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By Obafemi Oredein
Special to Dow Jones Newswires
IBADAN, Nigeria--The Nigeria Liquefied Natural Gas company signed a natural-gas supply agreement Friday with oil and gas producers for its Train 7 project.
International oil companies Shell, Total Nigeria and Nigerian Agip Oil Company and indigenous firms Oando and the Nigerian Petroleum Development Company are involved in the agreement, according to the Nigerian National Petroleum Corporation.
Mele Kyari, NNPC group managing director, said with the agreement in place "all was set for the take-off of the project," adding its Final Investment Decision would be taken next week.
Shareholders of NLNG Train 7 signed a letter of intent in September, an endorsement of a legally binding interim agreement outlining the main points of the project that precedes the FID.
The NLNG currently runs six trains and produces 22 million tons annually but with Train 7 on stream, production will rise by 35% to around 30 million tons, said Tony Attah, the company's managing director. The NLNG was ready to build more trains if the natural gas-producing companies can supply the amount required, he said.
The NNPC didn't give the volume of natural gas the companies would supply to Train 7 under the agreement.
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(END) Dow Jones Newswires
December 13, 2019 15:52 ET (20:52 GMT)
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