Chevron kicks off exploration in uncharted “ultra-deep” waters offshore Angola

June 19, 2024

(WO) – Chevron, through its subsidiary Cabinda Gulf Oil Company Limited, has signed two Risk Service Contracts (RSC) for Block 49 and Block 50 offshore Angola, in the ultra-deep waters of the Lower Congo Basin.

Source: African Energy Chamber

These contracts, awarded January 2024, mark the beginning of exploration and development in these offshore blocks. Announced by the African Energy Chamber (AEC), the organization praised Chevron’s commitment to expanding Angola’s oil and gas market, highlighting the country’s strong regulatory environment that has supported Chevron's 70 years of operations.

Block 49 and Block 50 are Chevron’s first operated assets outside the Cabinda concessions and are near other productive offshore concessions, like Block 17. Post exploration, these new blocks are expected to yield substantial returns and enhance Angola’s portfolio of ultra-deepwater assets. Chevron has already agreed with Angola’s National Oil, Gas & Biofuels Agency to conduct seismic surveys to better understand the geology of these blocks.

Chevron’s existing assets in Angola include significant stakes in Block 0 and Block 14, which produce substantial quantities of oil and gas. Block 0’s concession has been extended to 2050, and an agreement in 2020 improved fiscal terms for Block 14, extending its production sharing contract to 2028. Chevron also operates the Block 14/23 concession, with a 31% stake.

Additionally, Chevron holds non-operating interests in the Angola LNG plant, which processes gas from offshore concessions. The Sanha Lean Gas Connection Project, valued at $300 million, will enhance LNG production by connecting Blocks 0 and 14 to the LNG facility. Chevron also signed an agreement in 2023 to explore low-carbon business opportunities in Angola, including carbon offsets and lower-carbon intensity fuels like hydrogen.

NJ Ayuk, Executive Chairman of the AEC, said, ““Chevron’s recent signing of two RSCs further underscores the value of implementing a strong regulatory and fiscal environment in Africa. When governments open up the market through attractive fiscal terms, the industry will respond positively. This is clearly evident in Angola where a commitment to creating an enabling environment for doing business has and continues to attract foreign companies. Other countries in Africa should learn from this and adopt proactive measures to attracting foreign capital,” states NJ Ayuk, Executive Chairman of the AEC.

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