Chevron subsidiary Chevron Overseas (Congo) began oil and gas production from the Lianzi Field, the company’s first cross-border project between the Republic of Congo and the Republic of Angola, offshore Africa.
 |
|
Map of Lianzi. From Chevron. |
Lianzi is located 65mi (105km) offshore Central Africa at about 3000ft (900m) water depth.
As Chevron’s first operated asset in the Republic of Congo, and the first cross-border oil development project offshore Central Africa, the US supermajor is expected to produce an average of 40,000 b/d of crude oil from Lianzi.
Discovered in 2004, Lianzi includes a subsea production system and a 27mi (43km) electrically heated flowline system, the first of its kind at this water depth, Chevron said. The system transports the oil from the field to the Benguela Belize-Lobito Tomboco platform in Angola's Block 14 and utilizes a direct electrical heating (DEH) system to ensure fluid flow under a wide range of conditions.
According to Infield, Africa is expected to account for 20% of global demand for offshore oil and gas Capex over the next five years, and in these challenging times this region is a key area of focus for the oil and gas industry.
"As the first offshore energy development spanning national boundaries in the Central Africa region, Lianzi represents a unique cooperative approach to share offshore resources and may serve as a model for the development of similar cross-border fields between two countries," Ali Moshiri, president of Chevron Africa and Latin America E&P said.
Chevron Overseas (Congo) is operator of the Lianzi Field with a 15.75% interest. Partners in the field include Cabinda Gulf Oil Co. (15.5%), Total E&P Congo (26.75%), Angola Block 14 BV (10%), Eni (10%), Sonangol P&P (10%), SNPC (the Republic of Congo National Oil Co. - 7.5%), and GALP (4.5%).
Last week in the company’s Q3 results, Chevron announced it expects to cut as many as 7000 jobs to reduce costs. Although better than expected, Chevron’s net income for this period came in at US$2 billion, a dramatic 64.2% decrease year-over-year (from $5.6 billion), resulting in the US supermajor’s decision to drastically reduce its capital expenditures for next year.
Chevron was also hit with a lawsuit and lost its battle with the Australian Tax Office (ATO) in Australian federal court last month that will see the company pay more than $232 million in back taxes, in addition to fines.
Read more:
Subscribe
