Chevron Press Release - Chevron Joins Chad Development Consortium
Takes a 25-percent equity position
SAN FRANCISCO, April 3, 2000 -- Chevron announced today that it has taken a 25-percent equity position in an international consortium developing the Doba oil fields in southern Chad, and in a related 650-mile export pipeline project through Chad and Cameroon.
Chevron joins ExxonMobil, operator, and Petronas in the (U.S.) $3.5 billion project to develop the landlocked oil fields. The fields are expected to produce about one billion barrels of oil over the 25 to 30-year life of the project. The crude oil will be exported to world markets via pipeline to the coast of Cameroon. Project construction is scheduled to start this year.
"We are very pleased to join these two experienced companies and the governments of Chad and Cameroon in developing these significant crude oil reserves," said Dick Matzke, vice chairman for Chevron Corp. "Chevron's entry into the project reflects our worldwide focus on investing in strategic growth opportunities."
Commenting on how the project will further strengthen Chevron's position as one of the largest U.S. investors in sub-Saharan Africa, Peter Robertson, president of Chevron Overseas Petroleum Inc. noted that the project "affords us an excellent opening to build upon our existing liquids production in West Africa." Robertson added that the timing of Chevron's entry into the project "couldn't be better" as development plans are already at an advanced stage.
The Chad acquisition follows a series of recent Africa-related announcements by Chevron including first oil production from Angola's deep water Kuito field, and the company's acquisition of a 15 percent interest in the Republic of Congo's Mer Profonde Sud offshore exploration block.
Note to Editors:
Esso Chad is operator of the Chad Development Consortium and holds 40 percent interest; Chevron Chad holds 25 percent interest, and Petronas holds the remaining 35 percent.
For more information, visit the consortium's web site at www.essochad.com.
Updated: April 2000