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Lloyds List: Chevron to plough $50bn into oil and gas projects

US group eyes over 30 medium and long term sites, writes Martyn Wingrove,
Published: Mar 20, 2007

CHEVRON is planning to develop more than 30 new oil and gas projects over the next five years to increase production and add new proven reserves.

The California-based group could be investing at least $30bn and some estimates suggest that up to $50bn is likely to be ploughed into projects, mostly in the Gulf of Mexico, West Africa, Australasia and the Caspian regions.

There are deepwater oil and onshore liquefied natural gas plants within its medium-term development portfolio and more could be added through an extensive exploration and appraisal campaign continuing this year.

‘These projects deliver significant organic growth and given where they are in the development cycle, we are confident of achieving an average annual production growth of at least 3% through to 2010,’ said George Kirkland, Chevron’s head of upstream operations.

‘Not only is the outlook positive for near term production growth, but our exploration success continues to fill our development pipeline,’ he told analysts in New York last week.

Chevron already produces 2.7m barrels of oil equivalent per day and has 12bn boe of proven reserves, bolstered by the 14 main discoveries drilled since 2002.

This year, the second largest oil major in the US expects to begin new phases of the Tengiz oil field in Kazakhstan and to commence the Bibiyana gas field in Bangladesh.

Then 2008 will see a stream of new projects coming on line around the world to really get Chevron’s production growing.

In West Africa, the company’s main project is $5.2bn Agbami, where a floating production storage and offloading vessel is due to be installed in deepwaters off Nigeria. The firm is also a partner on Total’s Moho-Bilondo development off Congo, where another FPSO will be deployed.

Two deepwater projects are due on stream in the Gulf of Mexico in 2008, including $3.5bn Tahiti and $900m Blind Faith. Both involve floating production platforms with pipelines linked to the local area networks.

Chevron’s LNG output should get a boost next year when the $2.1bn fifth train is scheduled to come on stream on North West Shelf, Australia and there will be more gas production when the $1.8bn North Duri steamflood project in Indonesia is brought on line.

Also next year, it is expecting first production from the Callanish-Brodgar project in the North Sea, where two fields are being tied back to the Britannia platform, and from the third phase of the $4.1bn Azeri project in the Caspian Sea.

In 2009, the New York-listed major will be expecting fresh oil and gas production from West African projects and the deepwater $2.8bn Frade development off Brazil, where an SBM Offshore-supplied FPSO will be deployed.

In Angola, Chevron has already installed the first compliant tower on the Benguela-Belize fields and is in the process of installing subsea wells on the Lobito and Tomboco fields.

Its next Angolan project is to install a second $3.8bn compliant tower-designed production platform on the Tombua-Landana field in 2009.

In Nigeria there are two incremental projects under way at its Escravos plant including a $2.9bn gas-to- liquids station and another gas processing train costing $2.4bn. Both are due on stream in 2009.

In the longer term, Chevron is looking to help build a LNG plant on the Olokola site and be involved in three deepwater oil developments. It is considered likely that FPSOs will be needed for each of the Nsiko, Bonga SW-Aparo and Usan projects in the next five years.

Another long term LNG investment is Chevron’s involvement in the Greater Gorgon project, where it, and partners Shell and ExxonMobil, are considering developing several offshore gas fields to a double train plant on Barrow Island, Western Australia.

On the oil production side, Chevron is one of Shell’s partners in the Perdido project in the deepwater Gulf of Mexico, where a spar platform is scheduled to come on stream in 2010.

Chevron has also found several large deepwater oil fields in the region, including Jack, St Malo, Big Foot and Knotty Head, where appraisal drilling is required before a development decision can be made.

In Asia, Chevron is evaluating development of discovered gas resources offshore Vietnam and in the Platong field in the Gulf of Thailand, there are also the deepwater discoveries Gehem and Gendalo off East Kalimantan.

In Latin America, Chevron is instrumental in the offshore work undertaken on the Plataforma Deltana area of Venezuela and is a partner of Petrobras on the deepwater Papa-Terra field currently under evaluation.

In the UK, Chevron is appraising the potentially large Rosebank-Lochnagar oil discovery and could instigate a heavy oil project around the Mariner field.

Exploration drilling this year could add to the growing portfolio of projects. The US firm is planning more exploratory work in the deepwater Gulf of Mexico and Gulf of Guinea, plus there is wildcat drilling planned for the Gulf of Thailand, off northwest Australia and in the Orphan basin off eastern Canada.

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1 Comment on “Lloyds List: Chevron to plough $50bn into oil and gas projects”

  1. #1 michael doolan
    on Apr 4th, 2007 at 19:35

    Hi There
    My name is Michael Doolan and i’am a Intergrated Rating with 6 years work experience on FPSO’s and i’am keen to work on them again.I’ve been a seaman for 17 years with 12 of those years working offshore in the oil and gas industry if you would me to send you my c.v please email me.I’am applying for work on the SKY BARROW which i believe is coming on line later in the year.
    Best Reguards Michael Doolan.

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