Chevron Overseas (Congo) Limited - a subsidiary of oil major
) - recently announced that it will proceed with the combined
development of the Moho Bilondo "Phase 1 bis" and Moho Nord
projects, offshore the Republic of the Congo.
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The Moho Nord project includes a tension leg platform, a floating
production unit with a processing capacity of 100,000 barrels of
oil per day. It also involves a new 50-mile pipeline to the
onshore Djeno terminal. Moho Nord is the biggest oil and gas
project in the Republic of the Congo and is located 46 miles
offshore southwest of Pointe-Noire in water depths of about
1,500-4,000 feet. It is expected to extract oil from this project
The Moho Bilondo "Phase 1 bis" project will have a processing
capacity of 40,000 barrels of oil per day and involves wells tied
to an existing floating production unit. With the development of
Moho Bilondo 1E, production in this area began in 2008. It is
expected to extract oil from this project in 2015.
Total cost of the joint project is expected at $10 billion and
full production is anticipated in 2017.
Total E&P Congo, a subsidiary of France's
), is the operator of the projects with a 53.5% stake, while
Chevron holds a 31.5% working interest in the same. The remaining
15% stake is held by National Oil Company.
With the development of these projects, Chevron is on an
expansion path. This will also help Chevron to achieve its target
of 25% production growth by 2017. We believe such accomplishments
will garner profits for Chevron in the upcoming quarters.
Chevron currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next 1 to 3 months.
But there are certain other companies in the oil industry that
are expected to perform better in the coming 1 to 3 months. These
) with Zacks Rank #2 (Buy).