Jun. 27. 2005
Marubeni is participating into Liquefied Natural Gas (LNG) Project which Marathon Oil Corporation (US company, hereinafter referred to as “Marathon”) are promoting in the Republic of Equatorial Guinea in West Africa together with its National Oil Company. Last year, Equatorial Guinea announced a open bid for a sale of shares in the Holding Company and we Marubeni made a bid for it, which resulted in our successful acquisition of exclusive right in January this year for negotiation for the sale and purchase agreement of the said shares, and, following extensive discussion thereof, we could today arrive at putting our hand for signature onto the said Share Sale Agreement. Our participating share is 6.5%, and Mitsui & Co., Ltd. also takes 8.5% of shares at the same time with us.
This project is to liquefy and export the Natural Gas produced nearby Bioko Islands located offshore of the Gulf of Guinea, and Marathon is the operator for this project. The total project costs for this project is around 1.4 billion USD, and the construction of the facilities is currently underway smoothly by Bechtel (US company). LNG production is expected to start sometime in late 2007. While the contracted off-take rate with BG Gas Marketing Ltd (BGML), a subsidiary of BG Group plc, is 3.4 million metric tonnes per year and the off-take term is 17 years, the plant is expected to have the ability to operate at higher rates and for a longer period of time. Efforts are underway to acquire additional gas supplies through exploration and commercial means in order to expand the utilization of this LNG facility.
Given its geographical feature of the proximity to the North America, compared to other LNG sources around the world, this project has a good advantage in delivering competitive LNG product to the circum-Atlantic areas that provides a big expectation for future expansion of the market and, more particularly, to the US where the market keeps expanding steeply. In order to make best use of such advantage, plans for expansion of train have already been on the table.
As the demand for the environmentally-friendly natural gas is expected to increase worldwide for the future, it is Marubeni’s business strategy to continue aggressive investment to LNG projects and upstream interests in order to secure energy resources.
Company Overview : Marathon Oil Corporation
Location: Texas, US
Turnover: 49.6 billion USD
Business fields: Production and Sales of Oil and Gas
Company Overview: GEPetrol (National Oil Company)
Location: Republic of Equatorial Guinea
Foundation: February 2001
Under the control of: EG Government (Ministry of Energy)