Officials at the contracts' signing ceremony

CHEVRON has signed two risk service contracts (RSC) for Blocks 49 and 50, located in the ultra-deep waters of Angola’s Lower Congo Basin.

The company, through its Angolan subsidiary Cabinda Gulf Oil Company, was initially awarded the concessions by way of Presidential Decree in January 2024. The signing of the RSCs kicks off exploration and lays the foundation for the development of the blocks.

As the voice of the African energy sector, the African Energy Chamber (AEC) commends the recent signing by Chevron in Angola. Chevron’s rich history of exploration and production in the country – covering 70 years - could not have been possible without Angola’s strong regulatory environment and the AEC supports the ongoing efforts by the multinational to expanding Angola’s oil and gas market.

Representing Chevron’s first operated assets outside of the existing Cabinda concessions, Blocks 49 and 50 are situated in close proximity to producing concessions, such as Block 17 – one of the first deep-offshore blocks to be licensed in Angola.

As such, the blocks hold substantial potential for strong returns and further expand Angola’s portfolio of producing ultra-deepwater assets.

Earlier this year, Chevron signed an agreement with Angola’s national concessionaire – the National Oil, Gas and Biofuels Agency – to conduct seismic surveys in Blocks 49 and 50. These studies will improve the geological understanding of the concessions and advance the exploration agenda. The RSCs add to Chevron’s strong asset portfolio in Angola.

The company currently has a 26 per cent market share in the country, with interests in Blocks 0 and 14 – which produce an average of 70,000 barrels of liquids per day and 259 million cu ft of natural gas per day.

Block 0 – whose concession has been extended to 2050 – comprises 21 fields, while Block 14 contains nine fields.

Additionally, in 2023, Chevron signed a production sharing agreement to manage operations within the Block 14/23 concession area.

The concession is situated in the Zone of Common Interest shared by Angola and the Democratic Republic of the Congo, with the agreement seeing Chevron act as operator with a 31 per cent stake in the block.

Chevron’s operations in Angola transcend oil and gas exploration, with the company holding non-operating interests in the Angola LNG plant – Angola’s inaugural LNG facility.

In 2023, the facility reached a milestone of delivering its 400th LNG cargo.

Going forward, the development of new concessions aims to bolster LNG production at the facility. Specifically, the Chevron-operated $300 million Sanha Lean Gas Connection Project comprises the development of a platform that ties into the existing Sanha Condensate complex and features pipelines connecting Blocks 0 and 14 to the Angola LNG facility.

Beyond exploration and production, Chevron is spearheading low-carbon solutions across Angola’s oil and gas industry.

The multinational signed an agreement with the government in October 2023 to explore low-carbon business opportunities, with the goal to utilise nature-based and technological carbon offsets – alongside lower-carbon intensity fuels such as hydrogen – to enhance the country’s production.

This will be undertaken in conjunction with oil and gas initiatives and showcases Chevron’s future-oriented approach to energy development in Angola.