Cabinda Gulf Oil Company Limited - a subsidiary of energy
) - announced the start-up of production from its first Angola
LNG (liquefied natural gas) project. This $10 billion venture in
is one of the biggest energy projects in Africa.
The scope of the project includes collection of natural gas from
offshore Angola and transportation to an onshore liquefaction
plant on the coast close to the Congo River. Chevron's Angola LNG
project will have a capacity to churn out 63,000 barrels of
natural gas liquids per day for export, 5.2 million metric tons
per year of LNG and 125 million cubic feet per day of natural gas
for domestic utilization.
Management at Chevron believes that this LNG project in Angola
will aid in exploring natural gas resources in western Africa to
meet rising demand in the region and internationally. The project
will also help in reducing natural gas flaring and greenhouse gas
emissions from offshore producing areas, which in turn will
support offshore oil field development.
Chevron holds a 36.4% stake in the project with Angola's
state-owned oil company Sonangol holding 22.8%. Subsidiaries of
) hold 13.6% each.
Chevron is keen on exploring the opportunities in Africa. In
March, the company announced that it will proceed with the
combined development of the Moho Bilondo "Phase 1 bis" and Moho
Nord projects, offshore Republic of the Congo. The Moho Nord
project will have processing capacity of 100,000 barrels of oil
per day. It 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 in 2016.
The development of these projects indicates that Chevron is on an
expansion path in Africa. These 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
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.
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