In 2011, Chevron's operations in Angola had an average total daily production of 543,000 barrels of liquids (139,000 net barrels).
Exploration and Production
Chevron has an interest in four concessions: Block 0 off the coast of Cabinda province, Block 14 in deep water, Block 2 offshore northwest Angola and onshore block Fina Sonangol Texaco. We also have an interest in Angola LNG 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, we are 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 2011 averaged 340,000 barrels of liquids per day (108,000 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.
An appraisal well was completed in the Lifua Field in mid-2011, with successful flow tests from the Likouala and Vermelha zones. Development opportunities are being evaluated, with front-end engineering and design targeted for 2013.
The Area A Gas Management projects were designed to eliminate routine flaring of natural gas. With completion of the Malongo Flare and Relief Modifications Project in November 2011, all projects have been completed, and as of the end of 2011, flaring had been reduced by approximately 70 million cubic feet of natural gas per day.
The second stage of the Mafumeira field development, Mafumeira Sul, includes plans for a central processing facility, two wellhead platforms, approximately 75 miles (121 km) of subsea pipelines and 50 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 activities continued during 2011, and a final investment decision is expected in second quarter 2012.
In Area B, the Greater Vanza/Longui Area project is off the coast of western Angola. It is expected that the natural gas and natural gas liquids project will be a key supplier of gas to Angola LNG. Development studies continued through 2011. The project is expected to enter front-end engineering and design in the second half of 2012.
Work continued on the Nemba Enhanced Secondary Recovery and Flare Reduction Project in 2011. The first stage of the project was completed in June 2011 with the startup of natural gas injection on the existing South Nemba platform. The final stage of the $1 billion project is planned to eliminate routine flaring at the North and South Nemba platforms. We completed detailed engineering and design work for the new platform, and fabrication started in September 2011. Installation of the platform is scheduled for 2013, with gas injection anticipated to begin in 2014.
Front-end engineering and design work continued in 2011 on the south extension of the N'Dola Field development. Plans for the development call for a wellhead platform with production from 12 wells tied back to existing infrastructure. A final investment decision is expected in late 2012.
Of the two new Block 0 exploration wells drilled in 2011, one was successful. Two more wells are planned for the second half of 2012.
Applying Technology in Block 14
Chevron holds a 31 percent interest in and operates Block 14, a deepwater concession. West of Block 0, Block 14 averaged 187,000 barrels of liquids per day (29,000 net) in 2011 from the Benguela Belize–Lobito Tomboco, 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.
Studies to evaluate development alternatives for the Lucapa Field continued throughout 2011. Front-end engineering and design work is expected in second quarter 2012. Plans call for a floating production, storage and offloading vessel and subsea wells in about 4,000 feet (1,219 m) of water.
Development concept selection studies continued at the Malange Field during 2011. Front-end engineering and design activities are planned to start in mid-2012.
In 2011, wells at key prospects were planned, with drilling expected in 2012. Also in 2011, 3-D seismic in the Congo Canyon area was reviewed in preparation for future exploration drilling.
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 16,000 barrels of liquids per day (2,000 net) in 2011.
Congo River Canyon Crossing Pipeline
Chevron holds a 38.1 percent interest in a proposed pipeline designed to transport as much as 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 subsea canyon. Project construction began in May 2011 and is expected to be completed in 2013.
Angola LNG
Central to the Angola LNG project is its 5.2 million-metric-ton-per-year LNG plant. The $10 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 2011. Operations are expected to begin in the second quarter of 2012.
Updated: April 2012
Cautionary Statement