Syntroleum Signs Gas-to-Liquids Development Agreement with Kuwait for Papua New Guinea

19 December 2006

Syntroleum Corporation has signed a Joint Development Agreement with Kuwait Foreign Petroleum Exploration Company, K.S.C. (KUFPEC) to join in the development of a 50,000 barrel per day Gas-to-Liquids (GTL) facility in Papua New Guinea (PNG).

When complete, the plant will produce 50,000 barrels per day of Syntroleum S-2 synthetic diesel—a paraffinic, high-cetane distillate fuel essentially free of sulfur, olefins, metals, aromatics or alcohols—and other high-valued products.

The plant will become an anchor facility in the newly created Konebada Petroleum Park near the capital city of Port Moresby.

The Prime Minister of PNG, Sir Michael Somare, granted the GTL facility was priority status and designated it as a lead project in PNG’s effort to create a domestic gas monetization industry utilizing a portion of its significant gas resources.

We have completed our feasibility study, received the PNG Government’s strong support, and have been joined in the project by one of the world’s leading oil and gas exploration companies, KUFPEC. We are pleased that the project is moving forward with such support. Our focus now is to put in place the major contracts for the facility and move to financing.

—Jack Holmes, president and CEO of Syntroleum

Syntroleum developed a compact Fischer-Tropsch process for the conversion of natural gas or synthesis gas derived from coal and other carbon-based feedstock into synthetic liquid hydrocarbons.

The company yesterday announced the sale of its exploration and production facilities in Nigeria. (Earlier post.)