ChevronTexaco Announces First Condensate From Angola’s Sanha Field

Source: www.gulfoilandgas.com 3/1/2005, Location: Africa

ChevronTexaco Corp. announced that its Angolan subsidiary, Cabinda Gulf Oil Company Ltd. (CABGOC), has achieved first condensate production from the Sanha Field, located in the Block 0 concession, offshore Malongo, Cabinda province.

The Sanha condensate complex, located approximately 23 miles (37 kilometers) offshore and directly above the Sanha Field, serves as the hub for processing natural gas from the surrounding production facilities. Wells pre-drilled in early 2004 into the Sanha Field, along with those from neighboring fields, are now producing approximately 6,000 barrels of condensate (a light, valuable oil) per day into the Sanha complex. In addition, dry gas is being re-injected into the subsurface to help maintain reservoir pressure and for storage ahead of eventual delivery to the proposed Angola liquefied natural gas facility.

Combined production from the Sanha project, which includes crude oil from the nearby Bomboco Field, is expected to reach its average yearly peak of 100,000 barrels a day of oil, condensate and liquefied petroleum gas (LPG) by 2007.

Commenting on today’s announcement, ChevronTexaco Overseas Petroleum President John Watson said: "First condensate from Sanha, coupled with Bomboco first oil, represents a major step toward our goals of bringing the Sanha project fully on line and helping us to achieve our production growth targets for Africa." Watson added that with the start of re-injection, the company also was moving forward with its plan to significantly reduce the routine flaring of natural gas in Block 0.

The Sanha complex is capable of re-injecting 500 million cubic feet of produced gas per day. LPG production is scheduled to commence early in the second quarter of 2005 when a 32,000 barrel per day LPG floating production, storage and off-loading vessel is fully operational.

ChevronTexaco’s managing director of the Southern Africa strategic business unit, Jim Blackwell, stated: "We continue to achieve operational milestones safely, on schedule and on budget. This has been a daunting challenge with the complexities of components being fabricated in Angola, Korea, Japan, and the United States. This is a tremendous achievement for our business unit, and I am proud of the project team’s efforts."

Cabinda Gulf Oil Company Ltd., with 39.2 percent, is operator of the Block 0 concession on behalf of its partners: Sociedade Nacional de Combust?veis de Angola (Sonangol), 41 percent; Total, 10 percent; and Eni Angola Exploration B.V., 9.8 percent.



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