I have no idea what to make of this.
From Rigzone:
- a new gas-to-liquids (GTL) joint venture between Chevron/Nigerian government is coming on line
- originally projected to cost about $3 billion
- "astronomical" overrun when current costs are shown to be $10.3 billion
- Sasol Ltd, the world's biggest producer of fuel from coal, had a 27.5% stake in this venture, but sold their stake to Chevron in 2008 after the project's cost more than doubled
- will produce 33,000 bbls per day, mostly synthetic diesel
BOE calculations:
- if a bbl holds 42 gallons, that works out to 1,400,000 gallons/daily
- at $3.00/gallon = $4 million daily sales (not profit)
- $10 billion / $4 million = 2,500 days or about 7 years of sales to pay for plant
- of course, a dozen other factors are not being considered
My hunch with regard to original estimate of $3 billion "skyrocketing" to $10 billion was simply something "lost in translation."
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