Sasol sheds interest in Escravos GTL plant

Sasol Ltd. has signed an agreement to sell its indirect beneficial interest in the Escravos gas-to-liquids (EGTL) plant in Escravos, Nigeria, to Chevron Corp.

Sasol Ltd. has signed an agreement to sell its indirect beneficial interest in the Escravos gas-to-liquids (EGTL) plant in Escravos, Nigeria, to Chevron Corp.

The July 1 transaction—which has an agreed economic effective date of Sept. 1, 2019—releases Sasol from associated company guarantees and other obligations related to the EGTL plant, Sasol said.

Sasol, however, will continue to support Chevron in performance of the EGTL plant via ongoing catalyst supply, technology, and technical support.

The interest divestment comes as part of Sasol’s comprehensive response strategy to mitigate the impact of lower oil prices caused by the coronavirus (COVID-19) pandemic, the operator said.

Sasol held a 10% interest in the Chevron-operated EGTL plant, which has the capacity to process 325 MMcfd into 33,000 b/d of liquids—principally synthetic low-sulfur diesel—for cars and trucks. Nigerian National Petroleum Corp. also is a partner in the EGTL plant, which entered operation in 2014, according to Chevron’s website.