Chevron's operations in Angola had a total daily production of 534,000 barrels of liquids in 2008 (145,000 net barrels).
Exploration and Production
Chevron has an interest in four concessions – Block 0 off the coast of Cabinda Province, Block 14 farther west in the deep water, Block 2 offshore northwest Angola and the onshore block Fina Sonangol Texaco. We also have an interest in Angola Liquefied Natural Gas, an onshore liquefied natural gas (LNG) joint venture.
Block 0
Chevron operates the Block 0 concession, located offshore adjacent to the Cabinda coastline. Working with our partners, Chevron is embarking on a major development program to significantly increase production. Chevron has a 39.2 percent interest.
The block is divided into Areas A and B. Together they contain 21 fields whose total production in 2008 of 344,000 barrels of liquids per day (109,000 net barrels). Drilling activity within Block 0 continues at a high level. Several major infrastructure projects are expected to help eliminate routine flaring of natural gas, handle increasing production volumes and renew older facilities.
Several projects are ongoing in Area A. Drilling at the Banzala Field is expected to continue through the third quarter of 2009. The Greater Takula infrastructure project was completed in August 2008. That project involved upgrades to increase production efficiency of four offshore platforms and onshore facilities to boost production and water treatment capacity.
The Takula Gas Processing Platform started up in December 2008 and work continues on the Cabinda Gas Plant, which is scheduled to start up in the second half of 2009. Work continues on the Takula and Malongo Flare and Relief Modification Project, scheduled to start up in stages beginning in second quarter 2009 and continuing into 2011. These three projects, which are major components of the Area A Gas Management Project, are expected to eliminate the routine flaring of natural gas by collecting and reinjecting excess natural gas into reservoirs.
The development of the first phase of the Mafumeira Field in Area A, Mafumeira Norte, continued with the installation of the platform topsides in December 2008. First production of crude oil was announced in July 2009, with total daily production expected to reach approximately 30,000 barrels of crude oil and 30 million cubic feed per day of natural gas in 2011.
In Area B, development drilling at the Nemba and Kokongo fields occurred throughout the year. Front-end engineering and design continued in 2008 on the South N'Dola Field development, as did feasibility studies for several projects, including the Greater Vanza/Longui area in Area B and the Southern Malongo area in Area A.
In 2008, two delineation wells were drilled in Area A. One well found commercial quantities of hydrocarbons and was put into production. The second well was not commercially viable. An exploration well in Area B was completed in January 2009, and the results are being evaluated. Seismic data collection in Block 0 began in December 2008 and is expected to continue into 2010.
Block 14
Chevron holds a 31 percent interest in and operates Block 14, a deepwater concession. Located west of Block 0, Block 14 produced 168,000 barrels of crude liquids per day (33,000 net) in 2008 from the Benguela, Belize, Lobito, Tomboco, Kuito and Landana fields. Since 1995, when the exploration license was first awarded, Block 14 has undergone an aggressive exploration program that has resulted in 11 discoveries.
During 2008, development drilling continued at all the fields in the Benguela Belize–Lobito Tomboco project. Benguela Belize is the industry's first application of compliant piled tower structural technology outside the Gulf of Mexico. At 1,680 feet (512 m), the drilling and production platform is among the world's tallest man-made structures.
Another major project in Block 14 is the development of the Tombua and Landana fields. Installation of producing facilities for the $3.8 billion project was completed late 2008. First oil from the Tombua-Landana facilities was announced in September 2009. The maximum total daily production of 100,000 barrels is expected in 2011.
Throughout 2008, the Negage project was being evaluated.
Two satellite exploration wells and one appraisal well were drilled in Block 14 in 2008, all in the Lucapa provisional development area. Subcommercial quantities of hydrocarbons were discovered in the exploration wells. The appraisal well, however, resulted in the additional discovery of a deeper reservoir in Block 14. Studies to evaluate development alternatives began in the second quarter of 2008.
Block 2 and Fina Sonangol Texaco
Chevron holds a 20 percent working interest in Block 2 located offshore and adjacent to Angola's northwestern coast. Chevron has a 16.3 percent interest in the onshore Fina Sonangol Texaco area. In neither concession is Chevron the operator. The two areas averaged a total production of 22,000 barrels of liquids per day (3,000 net) in 2008.
Angola Liquefied Natural Gas
Central to the Angola Liquefied Natural Gas project is its 5.2 million-metric-ton-per-year LNG plant. Located onshore in the northern part of the country, the facility is designed to process natural gas produced from offshore fields and help commercialize associated gas from oil-producing operations. Chevron has a 36.4 percent interest. Construction of the LNG plant began in early 2008. Startup is expected in 2012.
Updated: September 2009