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BP share price: Group gives go-ahead to Africa LNG project

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BP (LON:BP) has given the green light for the development of a liquefied natural gas (LNG) offshore Mauritania and Senegal, the blue-chip group has said. The news comes after the FTSE 100 group said yesterday that it was considering creating a petrochemicals joint venture in Turkey together with Azerbaijan’s SOCAR.

BP’s share price has fallen into the red in today’s session, having given up 0.70 percent to 488.95p as of 14:17 GMT. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.18 percent lower at 6,699.68 points.

Africa LNG project go-ahead

BP and its partners announced that they had agreed the Final Investment Decision (FID) for Phase 1 of the cross-border Greater Tortue Ahmeyim development. The project will produce gas from an ultra-deepwater subsea system and mid-water floating production, storage and offloading (FPSO) vessel, which will process the gas, removing heavier hydrocarbon components. The gas will then be transferred to a floating liquefied natural gas (FLNG) facility at a nearshore hub located on the Mauritania and Senegal maritime border.

“Achieving sanction for the ground-breaking Greater Tortue Ahmeyim development, and at such a fast pace, is testament to the dynamic partnership working together to bring this innovative project onstream and establish a new deepwater gas value chain,” Bernard Looney, BP Upstream chief executive, commented in the statement.

BP holds a 60-percent stake in the project in Senegal and 62 percent in Mauritania, while partner Kosmos Energy has a 30-percent stake in Senegal and 28 percent in Mauritania. Societe des Petroles du Senegal and Societe Mauritanienne Des Hydrocarbures et de Patrimoine Minier each holds a 10-percent stake in Senegal and Mauritania, respectively.

Work to start next year

BP noted that work on the project is expected to start in the first quarter of next year, with first gas expected to be produced in 2022. The FTSE 100 group’s Gas Marketing unit has been selected as the sole buyer of the project’s LNG.

As of 14:25 GMT, Friday, 21 December, BP plc share price is 488.65p.

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