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UPSTREAM<br />
Africa<br />
Exploration – Block 14 During 2004, <strong>Chevron</strong>Texaco<br />
successfully negotiated an extension to the exploration<br />
period and is planning an extensive 3-D seismic program<br />
over the unexplored areas of the block to assess the<br />
remaining potential. Additional drilling is planned for<br />
the Negage and Gabela fields in 2005 and 2006, discovered<br />
in 2002, to further evaluate the resource base and<br />
establish commerciality for these developments.<br />
Angola LNG The Angola LNG project is an integrated<br />
gas utilization effort. In addition to commercializing<br />
Angola’s gas resources, this project will continue to<br />
facilitate offshore crude oil development by reducing<br />
flaring of the natural gas associated with crude oil production<br />
and is expected to provide a long-term market<br />
for this associated gas. <strong>Chevron</strong>Texaco and the state oil<br />
company of Angola are co-leading the project, which<br />
provides the company with an opportunity to grow its<br />
international natural gas business and operate a worldclass<br />
LNG project. <strong>Chevron</strong>Texaco’s interest is 36.4<br />
percent. Proved natural gas reserves associated with this<br />
project were not yet recognized at the end of 2004.<br />
In March 2005, the company and its partners<br />
reached an agreement to establish the gas supply, corporate<br />
structure, and legal and regulatory framework for<br />
the project.<br />
CHAD/CAMEROON<br />
The Chad/Cameroon project is developing crude oil<br />
fields in southern Chad and transporting the crude<br />
oil more than 650 miles (1,050 km) by underground<br />
pipeline to the coast of Cameroon for export to world<br />
markets. <strong>Chevron</strong>Texaco has a 25 percent nonoperating<br />
interest in the field and approximately 21 percent interest<br />
in the pipeline. Over its 30-year life, the total project<br />
is expected to produce approximately 1 billion barrels of<br />
crude oil and cost approximately $5 billion. Production<br />
from Miandoum Field, one of three fields in the crude<br />
oil development area, began in 2003. Production in 2004<br />
was approximately 200,000 barrels of crude oil per day<br />
(37,000 net barrels). Proved undeveloped reserves were<br />
booked in 2000 and began to be reclassified to proved<br />
developed in 2002. At the end of 2004, the initial phase<br />
of the project was complete, with central treating facilities,<br />
pipelines and export facilities fully operational.<br />
Infill drilling will continue in the Miandoum, Kome<br />
and Bolobo fields in 2005.<br />
The pre-FEED work for the first development project<br />
outside the original three fields was completed in<br />
2004. The satellite project is expected to develop approximately<br />
100 million barrels in the Nya and Moundouli<br />
fields. The company’s share of total project cost is estimated<br />
at $340 million. First crude oil from these fields<br />
NIGER<br />
NIGERIA<br />
Kribi Marine<br />
Export Terminal<br />
GABON<br />
<strong>Chevron</strong>Texaco Interest<br />
Crude Oil Field<br />
CAMEROON<br />
Doba<br />
CHAD<br />
REPUBLIC<br />
OF THE CONGO<br />
CENTRAL<br />
AFRICAN REPUBLIC<br />
SUDAN<br />
DEMOCRATIC<br />
REPUBLIC<br />
OF THE CONGO<br />
Crude Oil Pipeline<br />
Terminal<br />
is projected for early 2006, at an initial production rate<br />
of 26,000 barrels per day (7,000 net barrels). If approved<br />
by the partners, the project will finalize the FEED<br />
work, start construction and begin drilling in the first<br />
half 2005.<br />
Ratification of the exploration permit extension<br />
was approved by the government in January 2005, at<br />
which point the company started a five-year exploration<br />
program to evaluate the remaining Doba and<br />
Doseo areas.<br />
DEMOCRATIC REPUBLIC OF THE CONGO<br />
<strong>Chevron</strong>Texaco sold its 50 percent interest in the 390-<br />
square-mile (1,010-sq.-km) concession off the coast of<br />
the Democratic Republic of the Congo in mid-2004.<br />
Production through the date of sale was 19,000 barrels<br />
of crude oil per day (9,000 net barrels). The impact<br />
of the sales on 2004 net daily production averaged<br />
4,000 barrels.<br />
EQUATORIAL GUINEA<br />
In 2000, <strong>Chevron</strong> Equatorial Guinea Ltd. entered into<br />
a production-sharing contract with the Republic of<br />
Equatorial Guinea for Block L, located off the coast of<br />
the island of Bioko. <strong>Chevron</strong>Texaco is the operator with<br />
a 45 percent contractor interest. The first exploration<br />
well, Ballena-1, was completed in 2003. <strong>Chevron</strong>Texaco<br />
is considering partial farm-out opportunities and, if<br />
completed, plans to drill two stratigraphic prospects<br />
in Block L.<br />
LIBYA<br />
In early 2005, the company was awarded an onshore<br />
block in Libya’s first exploration license round, under<br />
the terms of the Exploration and Production Sharing<br />
Agreement IV. The company was also made operator of<br />
Block 177 with 100 percent equity. The events mark the<br />
company’s return to Libya after a 28-year absence.<br />
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