Chevron to invest $10 billion in Republic of Congo offshore oil fields
BY BEN LEFEBVRE
CALIFORNIA -- Chevron said it will go ahead with a $10 billion project to produce oil in the waters west of the Republic of the Congo.
The investment in the offshore oil fields will greatly expand Chevron's footprint in West Africa oil fields and add to its list of projects to maintain oil production in the latter half of the decade. Chevron said it expects the Moho Bilondo and Moho Nord projects to start producing oil in 2015 and 2016, respectively, and produce a combined 140,000 bopd by 2017.
The fields, 46 miles off the Congolese shore and in water depths of between 1,500 and 4,000 ft, represent the largest oil and gas production project in the country, according to Chevron. Chevron's local subsidiary has a 31.5% working interest in the project, while project operator Total E&P Congo has a 53.5% interest. Societe Nationale des Petroles du Congo has a 15% share.
Chevron is betting that new projects in Australia, South America and Africa will help it reach a daily production target of 3.3 MMbopd by 2017. The company had an average output of 2.67 MMbopd in the 4Q 2012.
Chevron and other oil companies that have experience drilling in the United States Gulf of Mexico are increasingly taking their expertise to the waters off West Africa, which possess a similar geology, said Oppenheimer’s energy analyst Fadel Gheit.
Dow Jones Newswires