In 2010, Chevron's operations in Angola had a total daily production of 580,000 barrels of liquids (152,000 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 deep water, Block 2 offshore northwest Angola and the onshore block Fina Sonangol Texaco. We also have an interest in Angola Liquefied Natural Gas Limited, an onshore liquefied natural gas (LNG) joint venture.
Moving Ahead in Block 0
Chevron operates the Block 0 concession offshore Cabinda. Working with our partners, Chevron is embarking on a major development program to significantly increase production. Chevron has a 39.2 percent interest in Block 0.
The block is divided into Areas A and B. Together they contain 21 fields whose total production in 2010 was 365,000 barrels of liquids per day (116,000 net). Drilling within Block 0 remains a priority. Major infrastructure projects are expected to help eliminate routine flaring of natural gas, handle increasing production and renew older facilities.
Progress is being made to eliminate routine natural gas flaring in Area A. Four projects are designed to reinject excess natural gas into the Takula and Malongo reservoirs. Three projects were completed in 2008 and 2009. By the end of 2010, flaring was reduced by approximately 65 million cubic feet of gas per day. Work on the fourth project, the Malongo Flare and Relief Modification Project, continued in 2010 and is expected to be completed in the fourth quarter of 2011.
The first phase of the Mafumeira Norte project completed development drilling and reached maximum total daily production of 57,000 barrels of crude oil in the fourth quarter of 2010. First oil was announced in 2009.
Mafumeira Sul is approximately 19 miles (31 km) off the Angolan coast in 200 feet (61 m) of water. Development plans include a central processing facility, two wellhead platforms, approximately 75 miles (120 km) of subsea pipeline and 51 wells. The maximum total daily production is expected to reach 110,000 barrels of crude oil and 10,000 barrels of liquefied petroleum gas. Front-end engineering and design began in January 2010 and a final investment decision is expected in 2011.
In Area B, in the Greater Vanza/Longui Area, two exploration wells were completed that targeted a geological formation known as the pre-salt layer. The first well was completed in February 2010 with successful flow tests from pre-salt zones beneath the Pinda formation. The second well, completed in June, was not successful. Processing of seismic data is expected to continue through 2011.
Work continued on the Nemba Enhanced Secondary Recovery & Flare Reduction Project in 2010. Plans call for enhancing crude oil recovery by increasing natural gas injection and eliminating routine flaring at the North and South Nemba platforms beginning in 2014. The first stage of the project is expected to be completed in the second quarter of 2011 with the startup of natural gas injection on the existing South Nemba platform.
In 2010, front-end engineering and design continued on the south extension of the N'Dola Field development. A final investment decision is anticipated in the fourth quarter of 2011.
Plans call for drilling two new exploration wells in Block 0 in the second half of 2011.
Applying High Technology in Block 14
Chevron holds a 31 percent interest in and operates Block 14, a deepwater concession. West of Block 0, Block 14 produced 197,000 barrels of liquids per day (34,000 net) in 2010 from the Benguela Belize-Lobito Tomboco (BBLT), Kuito and Tombua-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.
The BBLT facility is the industry's first application of compliant piled-tower structural technology outside the Gulf of Mexico. Compliant piled-tower platforms are attached to the seafloor, but are able to safely flex with the constant forces of wind, waves and currents. 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 $3.8 billion development of the Tombua and Landana fields. Development drilling continued in 2010. By the end of the year, 12 development wells and five injection wells had been completed and more development drills were planned. The maximum total daily production of 75,000 barrels of crude oil is expected to be reached by the second quarter of 2011. First oil was recorded at Tombua-Landana in 2009.
Studies to evaluate development alternatives for the Lucapa Field continued throughout 2010. A successful exploration well was drilled in the fourth quarter. Front-end engineering and design is expected in the third quarter of 2011.
A new development area was granted at the Malange Field in 2010 after a successful appraisal well was drilled in 2009.
Block 2 and Fina Sonangol Texaco Area
Chevron holds a 20 percent nonoperated working interest in Block 2, offshore Angola's northwest coast. Chevron has a 16.3 percent nonoperated working interest in the onshore Fina Sonangol Texaco area. The two areas averaged a total production of 18,000 barrels of liquids per day (2,000 net) in 2010.
Congo River Canyon Crossing Pipeline
Chevron holds a 38.1 percent interest in a proposed pipeline designed to transport up to 250 million cubic feet per day of natural gas from Angola's Blocks 0 and 14 to the Angola LNG plant in Soyo. The development plans include 87 miles (140 km) of pipeline routed under the Congo River canyon. Project construction is scheduled to begin in the second half of 2011 and be completed in 2013.
Angola LNG
Central to the Angola LNG project is its 5.2 million-metric-ton-per-year LNG plant. The $9 billion plant in Soyo is designed to process 1.1 billion cubic feet of natural gas per day with expected average total daily sales of 670 million cubic feet of regasified LNG and up to 63,000 barrels of natural gas liquids. Chevron holds a 36.4 percent interest in the project. Construction of the LNG plant, which began in 2008, continued on schedule through 2010. Operations are expected to begin in 2012.
Updated: March 2011