Exploration and Production
In 2012, Chevron's net daily production in Nigeria averaged 238,000 barrels of crude oil, 165 million cubic feet of natural gas and 4,000 barrels of LPG.
Through our principal subsidiary in Nigeria, Chevron Nigeria Limited, we operate and hold a 40 percent interest in 13 concessions under a joint-venture arrangement with the Nigerian National Petroleum Corporation (NNPC).
Onshore and Near Offshore
Work to rebuild the Olero Creek production facilities and lay a new pipeline to transport natural gas from Abiteye to the processing facilities at Escravos was completed in late 2012. The production facilities have a design capacity of 48,000 barrels of crude oil per day; startup is expected in 2013.
The Dibi Long-Term Project is designed to rebuild the Dibi facilities that were vandalized in 2003 and replace the existing Early Production System facility, placed in service in 2007. The facilities have a maximum production capacity of 70,000 barrels of crude oil per day. A final investment decision was reached in early 2013, and startup is expected in 2016.
Our shallow-water exploration work continues. In 2012, we reviewed 3-D seismic data collected from Oil Mining Lease (OML) 86 and OML 88.
Chevron has interests, ranging from 18 percent to 100 percent, in four operated and six nonoperated deepwater blocks in offshore Nigeria.
Chevron operates the Agbami Field, which lies 70 miles (113 km) off the coast of the central Niger Delta region and spans 45,000 acres (182 sq km). Discovered in 1998, the Agbami Field is at a water depth of approximately 4,800 feet (1,463 m). Chevron has a 67.3 percent interest in the field.
Agbami is a subsea development with wells tied back to a floating production, storage and offloading (FPSO) vessel. A $1.9 billion 10-well development program is expected to provide crude oil production capacity to offset production decline. The first Phase 2 development began production in the second quarter of 2012. Drilling is expected to continue through 2016.
Chevron also has a 30 percent nonoperated working interest in the Usan Project, in 2,461 feet (750 m) of water, 62 miles (100 km) off the coast of the eastern Niger Delta region. Production began in the first quarter of 2012. Total daily production at the end of the year was 81,000 barrels of crude oil (21,000 net) and 3 million cubic feet of natural gas (1 million net). The facilities have a maximum daily production capacity of 180,000 barrels of crude oil.
The Aparo Field and the Bonga SW Field share a common geologic structure and are planned to be developed jointly. The structure lies in 4,300 feet (1,311 m) of water, 70 miles (113 km) off the coast of the western Niger Delta region. The proposed development plan involves subsea wells tied back to an FPSO vessel. The project is expected to begin the front-end engineering and design phase in 2013.
The company has a nonoperated working interest of 27 percent in Oil Prospecting License 223, where an exploration well in Owowo West was drilled in the third quarter of 2012. Chevron operates and has a 95 percent interest in the Nsiko discovery in OML 140. More exploration is planned for 2014 at this discovery, which lies in roughly 5,800 feet (1,768 m) of water, 90 miles (145 km) off the coast of the western Niger Delta region.
Chevron is involved in natural gas projects in the western Niger Delta and Escravos areas, including the expansion of the Escravos Gas Plant (EGP), construction of the Escravos Gas-to-Liquids (EGTL) facility, the Sonam Field development and the Agura Independent Power Plant.
Chevron operates and holds a 40 percent interest in the EGP development. The project is focused on eliminating routine flaring of natural gas associated with crude oil production. The project includes installation of 74 miles (119 km) of subsea pipelines and modifications to the production platforms. The $2.4 billion project is expected to be completed in 2016.
Chevron and the NNPC are developing the EGTL facility, a $9.5 billion 33,000-barrel-per-day gas-to-liquids project designed to process 325 million cubic feet per day of natural gas from the EGP expansion. Chevron is the operator and has a 75 percent interest in the plant, which is scheduled for startup in late 2013.
The $1.7 billion Sonam Field development is designed to use the EGP facilities to deliver 215 million cubic feet of natural gas per day to the domestic gas market and produce a total of 30,000 barrels of liquids per day. First production at the 40 percent-owned and operated project is expected in 2016.
Chevron operates and holds a 40 percent interest in six fields collectively referred to as the Onshore Area. In 2003, civil unrest in the area resulted in vandalism of the compression infrastructure. The Onshore Asset Gas Management project is designed to restore these facilities and supply 125 million cubic feet of natural gas per day to the Nigerian domestic gas market. The project began operations in late 2012.
With a 36.7 percent interest, Chevron is the largest shareholder in the West African Gas Pipeline Company Limited, which owns and operates the 421-mile (678-km) West African Gas Pipeline. The pipeline supplies Nigerian natural gas to customers in Benin, Ghana and Togo for industrial applications and power generation and has the capacity to transport 170 million cubic feet of natural gas per day.
Chevron holds a 20 percent nonoperated interest in the Assa-North/Ohaji South Development in OML 53. The development is designed to supply natural gas to the domestic market and is expected to begin front-end engineering and design work in late 2013.
Chevron operates and holds a 40 percent interest in the Agura Independent Power Plant project. Phase 1 of the development project has a design capacity of 330 megawatts. A final investment decision is expected in 2013, subject to the conclusion of commercial agreements and renewal of offshore leases.
Updated April 2013