CABINDA, Angola (Dow Jones)
Chevron Corp.'s (CVX) Cabinda joint venture is spending $2.3 billion over five years to reduce flaring--the burning of natural gas from oil fields--and instead utilize the gas, a top company official said this month.
The disclosure comes as foreign oil companies are increasingly investing to monetize the gas that used to burn in their African fields, driven by higher gas prices and environmentalists' demands.
In an interview during a visit at the Chevron compound in Angola's Cabinda enclave, John Baltz, Chevron's Southern Africa production manager, said though the spending is designed to be financially sound, "it isn't solely an economic project" but also a corporate responsibility effort. In particular, he said it will "reduce emissions for Chevron's corporate targets."
Some of the projects covered by the $3.2 billion budget are already in operation while others have yet to be completed.
Chevron is the operator and 39.2% shareholder of the venture, which also comprises state oil company Sonangol with 41%, Total SA (TOT) with 10% and Eni SpA (E) with 9.8%.
The oil fields operated by Chevron in Cabinda generate 1 billion cubic feet of gas a day.
Copyright (c) 2009 Dow Jones & Company, Inc.
Most Popular Articles