Don't count the Hunt Oil Co. group out of a project to export liquefied natural gas from Yemen, says Ray L. Hunt.
The chairman and chief executive officer of Hunt Oil confirms that his company and partner Exxon Corp. are engaged in "continuing discussions" with Yemeni government officials about construction of an LNG project in Yemen. Hunt cited the "strong commitment" of Hunt and Exxon to rapidly develop the project when government approvals are received.
Hunt issued his statement from his Dallas headquarters shortly after Enron Corp., Houston, disclosed it holds a memorandum of understanding to help Yemen develop the infrastructure required to supply natural gas to local markets and LNG to export customers (OGJ, Nov. 22, 1993, p. 33).
Among other things, the agreement between Enron and General Gas Corp. of Yemen calls for gas shipments through a 250 mile pipeline to an export terminal to be built on the Yemeni coast, liquefaction of the gas, and LNG exports.
Hunt pointed out that gas reserves required for the LNG project were discovered by Hunt and Exxon in the Marib area of Yemen. Marib gas reserves are subject to a production sharing agreement (PSA) between Hunt Exxon and the government of Yemen. A group of South Korean companies led by Yukong Ltd. holds a 24.5% interest in the Marib PSA.
Hunt said he is aware Enron has been discussing an LNG project with Yemen and has told Enron of the gas rights of Hunt Exxon Yukong under the Marib PSA. None of those rights has been relinquished.
Hunt also said Enron is not involved in Hunt Exxon Yukong's proposed LNG project and has not been authorized to represent the group's interests in Marib PSA gas.
The Hunt group proposal includes:
Total investments in the LNG project would be about $5.4 billion, of which $3 billion would be borne in Yemen by Hunt Exxon Yukong. The balance of the sum would be provided by third parties for LNG shipping.
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