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Major Producing Fields in Other U.S. Areas
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IOWA
In 2004, net production of natural gas averaged
950 million cubic feet per day, and net production of
crude oil and natural gas liquids averaged 130,000 barrels
per day. Capital spending focused on crude oil
and natural gas development, with major programs in
the Permian Basin, the Rockies, East Texas and South
Texas. In 2004, the company drilled 228 wells and participated
in approximately 300 nonoperated wells.
The company is minimizing the base production
decline in existing fields with workovers, artificial lift,
facility optimization and development drilling activity.
Some examples include Carthage Field in East Texas and
Encinitas Field in South Texas. Carthage Field had 2004
net oil-equivalent production of 11,000 barrels a day.
Ninety new wells have been drilled since 2002, which,
combined with other well and facility optimization
efforts, have flattened the field’s decline from 27 percent
to zero. In Encinitas Field, a development drilling program,
resulting from 3-D seismic and reservoir simulation
work, has increased year-end 2004 production to
more than 3,000 barrels of net oil-equivalent production
per day from 100 barrels per day in 2003.
ANGOLA
ChevronTexaco is the largest producer of crude oil and
liquefied petroleum gas (LPG) in Angola and was also
the first to produce in the deep water. The company has
an interest in four concessions totaling approximately
3 million acres (12,173 sq. km). During 2004, average
total crude oil production exceeded 478,000 barrels per
day (140,000 net barrels). The company is embarking
on a major development program in an effort to significantly
increase production after 2005.
Cabinda Gulf Oil Company Limited (CABGOC),
a wholly owned subsidiary of ChevronTexaco, is the operator
of two concessions, Blocks 0 and 14, off the west
coast of Angola, north of the Congo River. Block 0 is
a 1.38-million-acre (5,581-sq.-km) concession adjacent
to the coastline in which CABGOC has a 39.2 percent
interest. Block 14, in which CABGOC has a 31 percent
interest, is a 1.01 million-acre (4,092-sq.-km) deepwater
concession located west of Block 0. Texaco Panama
Limited (TEXPAN), a wholly owned subsidiary of
ChevronTexaco, is the operator and has a 20 percent
interest in Block 2, a 102,400-acre (414-sq.-km) concession
adjacent to the northwestern part of Angola’s coast,
south of the Congo River. TEXPAN also has a 16.3 percent
nonoperated interest in the 384,000-acre (1,554-sq.-km)
onshore Fina Sonangol Texaco concession.
Production – Block 0 The block is divided into Areas A
and B, which had total production in 2004 of 371,000
barrels of liquids per day (116,000 net barrels). In
2004, the company finalized a 20-year extension of its
Block 0 concession, which will expire in 2030. Area A
daily total production was 248,000 barrels of crude oil
(78,000 net barrels) and 4,000 barrels of LPG (1,000 net
barrels) from 13 fields. Area B, which is the combination
of areas previously known as Area B and Area C,
includes six fields that produced 119,000 total barrels
of crude oil per day (37,000 net barrels).
Development – Block 0 In Area B, the $1.9 billion Sanha
condensate gas utilization and Bomboco oil project
began operations with the installation of facilities and
the start of production in December 2004. This project
is expected to eliminate 50 percent of the associated gas
flaring in Block 0 and to have maximum daily production
exceeding 100,000 barrels of oil-equivalent per day
(40,000 net barrels) by 2006. LPG will be exported via
the world’s largest LPG floating production, storage and
offloading (FPSO) vessel. Initial recognition of proved
reserves was done at the end of 2002. Initial reclassification
of reserves from proved undeveloped to proved
developed occurred in 2004 and will continue in 2005
and 2006.
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