28th Jan 2014 10:31
LONDON (Alliance News) - San Leon Energy PLC Tuesday said it has signed a memorandum of understanding with Chevron Lummus Global LLC to exclusively cooperate on shale gas upgrading technology at San Leon's Timahdit oil shale license in Morocco.
The oil and gas production company, with operations in Europe and North America, said the two parties would work together to develop the technology required to produce high quality synthetic crude oil from raw shale oil to be produced in the licence.
The company said the deal will result in a detailed evaluation by Chevron Lumnus on the raw shale oil produced at the site with technology to be designed and delivered in cooperation with Enefit Outotec Technology, a joint venture of shale energy company Enefit Energia AS and metals processing technology group Outotec Oyj.
San Leon said the initial plan is to put three units at the Timahdit plant, which will be designed with the ability to increase capacity in order to exploit the estimated resource of 600 million barrels of shale oil within the licence area.
Chevron Lummus Global is partnership between Chevron Corp and engineering company Lummus Corp.
San Leon Energy shares were trading flat at 4.35 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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