press release

Chevron Group Produces New Angolan Oil Field


SAN FRANCISCO, Feb. 5, 1996 -- Chevron announced its wholly owned subsidiary, Cabinda Gulf Oil Company Limited (CABGOC), has begun crude oil production from Angola's Nemba field nearly three years ahead of the installation of permanent production facilities.

"The Nemba field is producing crude oil at a rate of 17,000 barrels a day," said Richard Matzke, President of Chevron Overseas Petroleum, Inc. "CABGOC's enhanced Early Production System (EPS) utilizes refinements in sub-sea technology customized for this oil field," said Matzke, noting that Nemba's reserves are already contributing to the future development of the area, rather than remaining in the reservoir for the customary two-or-more years while production platforms are constructed and installed.

To tap Nemba's reserves, located in 400 feet of water about 40 miles off the coast of the Cabinda Province in exploration Block B, CABGOC enhanced existing technology and installed a sub-sea completion arrangement capable of producing 20,000 barrels of crude per day from three wells drilled into the Pinda formation. Production will be maintained at or near that level for the two-and-one-half years prior to installation of the South Nemba and Lomba platforms in 1998. The EPS approach, devised to achieve early production while permanent production facilities are fabricated and installed, is the first application of such technology in the Cabinda Concession.

"EPS represents the initial phase of the South Nemba and Lomba Oil Development Project, recently approved by the Council of Ministers of Angola," Matzke said. The project is part of the third development phase for offshore Areas B and C where Chevron Overseas has oversight responsibilities through CABGOC, operator for itself and its partners in the Cabinda Association. "Development of areas B and C will greatly enhance Angola's hydrocarbon resources," Matzke said, noting that Cabinda production was previously limited to Area A.

Designs are being finalized for construction of the platforms. In the interim, crude is produced to a Floating Production, Storage and Off-loading (FPSO) vessel, the S.S. Jamestown, where it is processed and sent via sub-sea pipeline to CABGOC's Malongo terminal. First production through the two platforms is anticipated late in the second quarter, 1998; peak production of approximately 80,000 barrels per day is expected in 1999.


Participants in the Cabinda Concession are:
Sociedade Nacional de Combustiveis de Angola (Sonangol), 41 percent
Cabinda Gulf Oil Company Ltd., (Operator), 39.2 percent
Elf Petroleum Angola Ltd., 10 percent
Agip (Angola) Ltd., 9.8 percent

Updated: February 1996