“These agreements will formally initiate the engineering, procurement and construction phase of the project and put the EGTL (Escravos Gas to Liquids) project, valued at $1.3 billion, on track towards completion by mid-2006,” Chevron said in a statement.

The project is one of the major initiatives by the NNPC/Chevron joint venture to end gas flaring and commercialise the gas being produced along with oil in its operations.

The Nigerian Government has been pushing for such projects with the twin objectives of limiting environmental damage by eliminating greenhouse gases and creating jobs for Nigerians.