Calgary, Canada — 29 June 2012 – Independent oil and gas exploration and production company Talisman Energy Incorporated says it intends exiting a gas-to-liquids joint-venture project with South Africa’s Sasol Limited in the Montney shale formation in British Columbia.
Reuters quotes Talisman CEO John Manzoni as saying the company’s immediate focus is to accelerate investment in near-term liquids opportunities, with the goal of increasing liquids and oil-linked gas production to 300,000 barrels a day by 2015.
Talisman and Sasol Canada were studying whether western Canada could support a gas-to-liquids plant similar to the ones Sasol has built in Qatar. Such plants convert low-value natural gas into diesel or other fuels that command much higher prices.
Talisman, Canada’s fifth-largest independent oil explorer, said last June that it would decide in mid-2012 whether going ahead with the plant would be more profitable than selling gas into the North American market or liquefying it to ship overseas. It added that its decision to exit the project would not impact on its upstream partnership with Sasol, the world’s top maker of motor fuel from coal.
Talisman was granted the option to participate in the feasibility study as part of its partnership with Sasol. This deal included two 50% working interests in two natural gas assets and associated infrastructure in Talisman’s Montney shale resources.
Source: Reuters Africa. For more information, click here.