NNPC to Raise Stake in Chevron-operated GTL to 60%

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The Nigerian National Petroleum Corporation (NNPC) said it would increase its stake in a Chevron-operated gas-to-liquid (GTL) refinery to 60 per cent as part of a cost dispute resolution with the US oil major.

NNPC has a 20 per cent stake in the plant located some 60 miles (100 kilometres) southeast of Lagos.

California-based Chevron, which is trying to sell some Nigerian assets in an effort to focus on its fast-growing US production, did not immediately comment.

The 33,000 barrel-per-day (bpd) plant, which produces synthetic diesel, liquefied petroleum gas (LPG) and naphtha from natural gas using technology from South Africa’s Sasol, cost around $10 billion to build, four times the original estimate, and Reuters reported that its start-up in mid-2014 was years behind the scheduled date.