press release

Chevron Press Release - Chevron, Partners Produce First Oil from New Exploration Tract Offshore Angola

SAN FRANCISCO, Dec. 8, 1994 -- Chevron and its partners in the Cabinda Association, Sociedade Nacional de Combustiveis de Angola (SONANGOL), Agip Angola Limited and Elf Angola, announced the first production of crude oil from the Kokongo oil field, located in Area B, a relatively remote exploration tract located about 40 miles offshore Angola's Cabinda enclave.

"The Cabinda Concession's focus for its future oil production in Angola is centered on the development of reserves in Areas B and C," said Richard Matzke, President of Chevron Overseas Petroleum Inc. "Kokongo crude is the first production from Cabinda's more distant offshore areas," Matzke noted. Prior to the development of Areas B and C, Cabindan offshore oil production had been limited to Area A which is contiguous to the shoreline of Cabinda province.

Kokongo, discovered in 1989, is located in the southern part of offshore Area B which lies north of and adjacent to Area C. Both tracts are separated from the mainland by Area A. Kokongo's strategic position qualifies it to serve as the hub of the Cabinda Concession's future phases of more remote offshore development. Two 16-slot integrated drilling and production platforms were installed at Kokongo this year, and a 40-mile, 24-inch subsea pipeline was laid to transport production to the onshore terminal facilities at Malongo. Production from these first two platforms will peak at 60,000 barrels per day in 1996.

The East Kokongo platform, together with its satellite, West Kokongo, will serve as the gathering station for production from additional remote offshore fields including the Lomba and Nemba fields in Area B, and Sanha and N'Dola fields in Area C, which have been determined to be economically viable for production. Additional oil field discoveries in the two more remote tracts are currently being evaluated to determine their potential for commercial production.

Crude oil deposits in Areas B and C occur at intervals as shallow as 8,500 feet and as deep as 13,500 feet, in water depths anywhere from 200 to 400 feet. Reserves are from the Pinda formation from the Early Cretaceous period. Further development of Areas B and C will continue in phases, with fabrication of the South Sanha and North N'Dola platforms expected to begin in the first quarter of 1995, with installation scheduled in late 1996.

Cabinda Gulf Oil Company Limited (CABGOC), a subsidiary of Chevron, holds a 39.2-percent interest in and operates the Cabinda Concession on behalf of itself and the Cabinda Association: SONANGOL (41 percent), Elf (10 percent), and Agip (9.8 percent). CABGOC is Angola's leading oil producer, averaging 330,000 barrels of oil per day, and has been active in exploration and production activities in Angola for 40 years.

Updated: December 1994