highlights of operations
Chevron operates in Angola through its wholly owned subsidiary Cabinda Gulf Oil Company Limited (CABGOC), and we rank among the country’s top petroleum producers. We are investing in major energy projects intended to increase crude oil production and conserve natural gas.
Some of our most important investments are:
- Mafumeira Sul, the second stage of the offshore Mafumeira Field development
- Angola LNG, a liquefied natural gas (LNG) plant in Soyo
- Congo River Canyon Crossing Pipeline
In 2016, we completed the Congo River Canyon Crossing Pipeline and restarted the Angola LNG project, which produced its first shipment of liquefied natural gas in 2013. The main production facilities for Mafumeira Sul were brought on line in February 2017.
Chevron has interests in two concessions in Angola, which we operate. We are Angola’s largest foreign oil industry employer. Nearly 90 percent of our workforce in the country is Angolan.
Our social investments in Angola focus on projects that aim to promote economic development, help train the local workforce, and improve access to educational opportunities and health care.
In Angola, Chevron operates through its wholly owned subsidiary CABGOC. In 2016, our Angola operations had an average net daily production of 108,000 barrels of liquids and 114 million cubic feet of natural gas.
exploration and production
Chevron has an interest in two concessions: Block 0, off the coast of Cabinda Province, and Block 14, in deep water. We also have an interest in an onshore LNG joint venture, Angola LNG Limited.
Chevron operates and has a 39.2 percent interest in Block 0. In 2012, the offshore concession produced its 4 billionth barrel of crude oil. The block is divided into Areas A and B. Together they contain 21 fields that produced a net daily average of 80,000 barrels of liquids in 2016.
In October 2016, early production began at the second stage of the Mafumeira Field development, which consists of two wellhead platforms, approximately 75 miles (121 km) of subsea pipelines, 34 producing wells and 16 water injection wells. The facility has a design capacity of 150,000 barrels of liquids and 350 million cubic feet of natural gas per day. The main production facility was brought on line in February 2017, and the export of gas to Angola LNG and water injection support are scheduled to begin in the second quarter of 2017. Ramp-up to full production is expected to continue through 2018.
Chevron operates and holds a 31 percent interest in a production-sharing contract for deepwater Block 14. In 2016, net daily production was 25,000 barrels of liquids from the Benguela Belize–Lobito Tomboco, Belize North, Benguela North, Tombua, Landana and Lianzi fields.
natural gas commercialization
Natural gas commercialization efforts are expected to monetize a total potentially recoverable resource of more than 3 trillion cubic feet of natural gas and approximately 110 million barrels of liquids through export sales of LNG and natural gas liquids (NGLs). Chevron participates in two major commercialization projects: Angola LNG Limited and the Congo River Canyon Crossing Pipeline.
The 5.2 million-metric-ton-per-year LNG plant in Soyo is operated by Angola LNG Limited. Chevron holds a 36.4 percent interest in the project. The plant can process 1.1 billion cubic feet of natural gas per day, with expected average total daily sales of 670 million cubic feet of natural gas and up to 63,000 barrels of NGLs.
This is the world’s first LNG plant supplied with associated gas – natural gas produced as a byproduct of crude oil production. Feedstock for the plant originates from multiple fields and operators. In early 2016, work was completed on plant modifications and capacity and reliability enhancements. Production restarted and LNG cargos resumed in 2016. Total daily production in 2016 averaged 171 million cubic feet of natural gas (62 million net) and 7,000 barrels of NGLs (3,000 net).
Congo River Canyon Crossing Pipeline
Chevron holds a 38.1 percent interest in the Congo River Canyon Crossing Pipeline, which is designed to transport up to 250 million cubic feet of natural gas per day from Angola’s Blocks 0 and 14 to the Angola LNG plant in Soyo. The 87-mile (140-km) offshore pipeline crosses under the Congo River subsea canyon, one of the world’s largest underwater canyons. This significant engineering challenge was overcome in 2015, and the final portion of the pipeline was completed and gas began to flow to the Angola LNG Plant in September 2016.
Angola–Republic of Congo joint development area
Chevron is the operator of and holds a 31.3 percent interest in the Lianzi Unitization Zone, which is in an area shared equally by Angola and Republic of Congo. The Lianzi Project includes four producing wells and three water-injection wells with a subsea tieback to the Benguela Belize–Lobito Tomboco platform in Block 14. The project is designed for a capacity of 46,000 barrels of crude oil per day. First production was announced in 2015. Development drilling was completed at Lianzi in January 2016.
in the community
Chevron works with Sonangol – the concessionaire – as well as business partners, the government of Angola and community members to identify needs and invest in programs that will create measurable and enduring value for both the community and our business.
We make strategic social investments in three areas: health, education and economic development. Since 1988, Chevron and our partners have invested more than $215 million in programs that support the health, education, economic, environmental and social needs of millions of Angolans.
For more than 20 years, Chevron has supported the Cabinda Blood Bank in its efforts to guarantee safe blood transfusion services in Cabinda province. We provide medical supplies and diagnostic equipment, and we support training for health workers. More than 250,000 safe transfusions have been provided so far.
We joined the Ministry of Health and the Baylor College of Medicine International Pediatric AIDS Initiative at Texas Children’s Hospital to help establish the nation’s first comprehensive sickle cell screening and treatment program. The program strives for early diagnosis, better treatment of newborn babies, and increased awareness among Angolan families and health professionals. Since 2011, more than 182,000 babies have been screened.
Quality education empowers individuals and drives economic growth in communities. In Angola, we have helped create many success stories. These are some of the education initiatives we’ve supported:
- We helped build the first primary school in the Bom Jesus municipality, roughly 20 miles (30 km) outside Luanda. The school, built for 1,000 students, includes classrooms, staff offices, a library and a computer lab.
- To help underserved children in Namibe province, in southwestern Angola, Chevron helped remodel Colégio das Irmãs Doroteias, a primary school for more than 2,500 students. The entire facility was renovated and equipped.
- Chevron contributed $1 million to a project run by the U.N. Industrial Development Organization and the Angolan Ministry of Education to introduce entrepreneurship curricula in secondary schools. More than 29,000 students, 275 teachers and 70 administrators from 45 schools in eight of Angola’s 18 provinces received training.
- Chevron and our partners provide support and funds to build primary, middle, secondary and vocational schools in the provinces of Cabinda, Luanda and Kuando Kubango, benefiting more than 40,000 students.
- The competitive quiz Aprenda Brincando (Learn Through Playing) promotes essay writing outside the classroom and has helped more than 2,000 students in Cabinda.
- The Writing Contest, another competitive essay program, has challenged more than 2,500 students in Cabinda, Huambo and Luanda provinces.
- A scholarship program launched in 2011 assists high-performing students in Cabinda. The program has produced 46 graduates who are now employed in a variety of fields.
In 2009, Chevron launched a program to help small-scale fishermen in Cabinda province. Since then, more than 3,500 fishermen and fishmongers have received training, equipment and access to credit and have cut their operating costs. Many have diversified their business portfolio and acquired additional equipment and supplies.
Through business development programs, Chevron helps promote micro, small and medium-sized enterprises in Angola. Our programs promote competitiveness by offering training and mentoring. Chevron has established one business incubator center in Cabinda and helped launch another in Luanda.
Over a five-year period that extends through 2017, Chevron is investing $1 million in the Lwini Foundation to support the foundation’s Training for Better Integration (FORMEI) program, which is geared toward disabled young people. FORMEI offers vocational courses in both graphic and technical design as well as in information technology. Graduates gain on-the-job experience through paid internships at local companies, including Chevron. In 2015, we awarded a four-year university scholarship to one of our FORMEI interns.
Traffic accidents are the second-biggest cause of death in Angola. Since 2012, Chevron has partnered with Angola’s National Directorate of Road and Traffic to sponsor a national road safety campaign. In 2014, we helped sponsor the first national conference on road safety. In 2015, we sponsored Cabinda’s first exhibition on road accident prevention, and in Luanda in 2016, we sponsored an awareness walk that took place on Road Victims Day.
record of achievement
our story in Angola
Chevron has been in Angola since the 1930s, when Texaco® products were first marketed in the African nation.
In 1958, Cabinda Gulf Oil Company Limited, Chevron’s wholly owned subsidiary in Angola, drilled its first onshore well. In 1966, CABGOC’s first offshore discovery led to delineation of the Malongo Field. The Takula Field was discovered in 1971. In 1975, oil was found in Block 2 of the Essungo Field.
In 1986, additional exploration by Chevron coincided with the delineation of Angola’s Block 0. To maintain optimal pressure during production, we began using water-injection technology at the Takula Field in 1990.
In 1997, Chevron announced the discovery of the Kuito Field, the first of a series of major oil finds in the Block 14 concession. Two years later, Kuito became Angola’s first producing deepwater field.
In 2000, Texaco began engineering work on Angola’s first LNG project.
In 2015, Chevron reached an impressive milestone in Angola: 5 billion barrels produced from Blocks 0 and 14, located offshore Cabinda in deep water. More than a billion of those barrels came from the Takula Field.
recognition for our work
In 2016, at the International Quality Summit, our company won the Platinum Category award for our commitment to quality, leadership, technology and innovation. In 2015, Chevron received the International Quality Crown Award for the same qualities.
In 2013, at its third annual Sirius Awards, the Deloitte consulting firm recognized our efforts to help improve the quality of life for the people of Angola, designating Chevron as the company with the best corporate social responsibility program in Angola.
In 2012, the Portuguese-language business magazine Exame named Chevron the Best Company in Angola for Excellence in Sustainability and Corporate Responsibility Programs.
In 2010, the Angolan Ministry of Environment presented us with the Palanca Award for our contributions to the environment in Angola. Each year, the Palanca Award recognizes the efforts of those who strive to preserve the environment and use sustainable development principles. In 2013, the ministry again recognized Chevron for the company’s responsible environmental practices in Angola.
In 2009, the year that the $3.8 billion Tombua-Landana project began production, Offshore magazine, considered a reference publication for the energy and gas industry, selected Tombua-Landana as one of the five most notable projects in the world. The deepwater project includes 46 wells and has the fourth-highest compliant, or flexible, tower in the world. Offshore awarded the same distinction in 2005 to another Chevron project in Angola, the Benguela Belize–Lobito Tomboco project.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Site contains forward-looking statements relating to Chevron’s operations that are based on management’s current expectations, estimates and projections about the petroleum, chemicals and other energy related industries. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “budgets,” “outlook,” “focus,” “on schedule,” “on track,” “goals,” “objectives,” “strategies” and similar expressions are intended to identify such forward looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date issued. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing and chemicals margins; the company's ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil liftings; the competitiveness of alternate-energy sources or product substitutes; technological developments; the results of operations and financial condition of the company's suppliers, vendors, partners and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the company’s operations due to war, accidents, political events, civil unrest, severe weather, cyber threats and terrorist acts, crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries, or other natural or human causes beyond its control; changing economic, regulatory and political environments in the various countries in which the company operates; general domestic and international economic and political conditions; the potential liability for remedial actions or assessments under existing or future environmental regulations and litigation; significant operational, investment or product changes required by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce greenhouse gas emissions; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets or the delay or failure of such transactions to close based on required closing conditions set forth in the applicable transaction agreements; the potential for gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; material reductions in corporate liquidity and access to debt markets; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the company's ability to identify and mitigate the risks and hazards inherent in operating in the global energy industry; and the factors set forth under the heading “Risk Factors” on pages 20 through 22 of the company’s 2016 Annual Report on Form 10-K. Other unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements.
Certain terms, such as "unrisked resources," "unrisked resource base," "recoverable resources," “potentially recoverable volumes” and "original oil in place," among others, may be used to describe certain aspects of the company's portfolio and oil and gas properties beyond the proved reserves. For definitions of, and further information regarding, these and other terms, see the "Glossary of Energy and Financial Terms" on pages 50 and 51 of the company's 2016 Supplement to the Annual Report. As used in this report, the term "project" may describe new upstream development activity, including phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investment in emerging and sustainable energy activities, and certain other activities. All of these terms are used for convenience only and are not intended as a precise description of the term "project" as it relates to any specific government law or regulation.All trademarks, service marks, logos and trade names, whether registered or unregistered, are proprietary to Chevron, its affiliates, or to other companies where so indicated. You may not reproduce, download or otherwise use any such trademarks, service marks, logos or trade names without the prior written consent of the appropriate owner thereof.