Canadian oil exploration company, Talisman Energy Inc has announced the company’s intention to exit a gas-to-liquids joint-venture project with South Africa’s Sasol Ltd in the Montney shale formation in British Columbia. This was made known by the company’s chief executive officer, John Manzoni.
According to Mr. Manzoni, “Talisman’s immediate focus is to accelerate investment in near-term liquids opportunities, with the goal of increasing liquids and oil-linked gas production to 300,000 barrels a day by 2015.”
Before the decision to opt out, both companies were studying the prospect of western Canada’s support of a gas-to-liquids plant that is similar to those built by Sasol in Qatar. It was believed that such plants convert low-value natural gas into diesel or other fuels that command much higher prices.
However, Talisman has said its decision to exit the project does not affect the company’s upstream partnership with Sasol, the world’s top maker of motor fuel from coal.
Talisman is Canada’s fifth-largest independent oil explorer.