Angola: Chevron subsidiary Cabgoc renews Block 0 concession for 20 years

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Angola: Chevron subsidiary Cabgoc renews Block 0 concession for 20 years

7:56 CAT | 06 Dec 2021

File photo: Reuters

The Cabinda Gulf Oil Company Limited (Cabgoc), a subsidiary of Chevron in Angola, has renewed for 20 years its concession of Block 0, off the coast of Angola’s Cabinda province, the US company said Monday.

According to a statement, to which Lusa had access, the agreement signed in Houston, in the United States, extends the Block concession until 2050.

As part of this extension, the statement said, Cabgoc will continue to be the operator of the Bloc, with a 39.2 percent stake.

The contractor group includes Sonangol, the Angolan state oil company, with a 41 percent stake, Total, with 10 percent, and Eni Angola, with 9.8 percent.

The signing ceremony was attended by the State Secretary for Oil, Gas and Biofuels, José Barroso, the acting president of ANPG – National Agency for Oil, Gas and Biofuels, Belarmino Chitangueleca, as well as Derek Magness, from Chevron, Joaquim Fernandes, from Sonangol, and Jaime Luzolo, from Eni.

The acting president of the ANPG said that this agreement was very important because, “it means the continuity and trust of a partner from far away that has greatly contributed to the affirmation of Angola as a major oil producer in Africa.

Belarmino Chitangueleca also said that extending the concession was “a sign of the need to counteract the decline in production” and maintain focus on medium and long-term growth.

In his turn, the general manager of Chevron’s Southern Africa Strategic Business Unit, Billy Lacobie, expressed satisfaction at the opportunity to maintain the partnership with the Angolan government and with the associates of Block 0, under which they will continue to use their “technical and professional skills in the areas of exploration and production in the country, which are recognised worldwide.

“We are proud to have played a significant role in the development of the oil and gas industry in Angola, a country where we have been working for 60 years, and we have the firm goal of continuing to contribute to the supply of reliable, accessible and increasingly clean energy to Angolans, which allows for the progress of humanity and propels Angola to an advanced stage of progress and development,” said Billy Lacobie.

Besides Block 0, Cabgoc operates and holds a 31% stake in a production sharing contract in Block 14, in deep waters, located west of Block 0.

In 2020, Cabgoc’s average daily net production was 89,000 barrels of liquids and 340 million cubic feet of natural gas.

Source: Lusa