Chevron Extends Concession Off Angola Through 2050

Chevron Extends Concession Off Angola Through 2050
Chevron has extended the Block 0 concession, off the coast of Cabinda province, in Angola.

U.S. oil and gas supermajor Chevron has extended the Block 0 concession, off the coast of Cabinda province, in Angola.

The extension was received by Chevron’s affiliate in Angola – Cabinda Gulf Oil Company Limited (CABGOC).

Chevron said that the agreement extended the concession for 20 years, through 2050. Under the renewed agreement, CABGOC will remain the operator with a 39.2 percent interest in the concession.

Its partners remain Sociedade Nacional De Combustiveis De Angola – or Sonangol for short – with a 41 percent interest, TotalEnergies with a 10 percent interest, and Eni Angola Production with a 9.8 percent interest.

“We are pleased with the opportunity to continue to partner with the government of Angola and our Block 0 associates to apply our industry-leading exploration and production capabilities in Angola, where we have had a presence for more than 60 years,” Billy Lacobie, managing director of Chevron’s Southern Africa Strategic Business Unit, said.

“We are proud to have played a significant role in the development of the country’s oil and gas industry, and we look forward to continuing to help provide reliable, affordable, ever-cleaner energy that enables human progress and powers Angola forward,” he added.

It is worth noting that Block 0 is divided into Areas A and B, which together contain 21 fields. One of the more notable is Mafumeira Sul, the second stage of development of the Mafumeira field in Block 0 which started production in early 2017. The project includes a central processing facility, two wellhead platforms, approximately 75 miles of subsea pipelines, 34 producing wells, and 16 water injection wells.

In addition to Block 0, CABGOC operates and holds a 31 percent interest in a production-sharing contract (PSC) for deepwater Block 14, located west of Block 0.

In 2020, Chevron’s Angola affiliate had a net daily production average of 89,000 barrels of liquids and 340 million cubic feet of natural gas.

Chevron also holds a 36.4 percent interest in Angola LNG Limited, which operates an onshore natural gas liquefaction plant in Soyo, in the Zaire province.

The plant has the capacity to process 1.1 billion cubic feet of natural gas per day. Angola LNG is the world’s first LNG plant supplied with associated gas, where natural gas is a byproduct of crude oil production. Feedstock for the plant originates from multiple fields and operators.

To contact the author, email bojan.lepic@rigzone.com


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