Angola LNG 1st Cargo in May: Chevron CEO
Chevron made a 1Q 2016 loss of $725mn, reversing a profit of $2.6bn in the first quarter of last year, but said Angola LNG in which it is the largest partner should resume exports next month.
“Production from the Angola LNG plant is imminent and a cargo shipment is expected in May,” said Chevron CEO John Watson in its results statement on April 29. Chevron’s interest is 36.4%. The 5.2mn metric ton/yr capacity LNG export venture opened in mid-2013 but has been shut for two years since early 2014. Two days ago Total, a fellow Angola LNG partner, said only that it would restart “by mid 2016”.
Chevron’s worldwide equity oil and gas production was flat year-on-year at 2.67mn barrels of oil equivalent/day. Outside the US, net gas production was unchanged at 4.04bn ft3/d – equivalent to 41.8bn m3/yr – whereas liquids production fell 1% to 1.97mn b/d; it noted production ramp-ups in Nigeria.
Earlier the same day, Eni also reported a similar-sized loss to Chevron’s, largely due to low oil prices. Eni too is a partner in Angola LNG.
In contrast US supermajor ExxonMobil, also April 29, reported earnings of $1.8bn, down 63% from 1Q 2015. Its upstream production rose by 1.8% to 4.3mn boe/d, with liquids up 11.5% at 2.5mn b/d, whereas gas declined by 9.3% (or 1.1bn ft³/d lower) to 10.7bn ft3/d (equivalent to 110.6bn m3/yr). Exxon specifically cited the impact of “regulatory restrictions in the Netherlands”, meaning the production cap on the Groningen gasfield where Exxon and Royal Dutch Shell – through their joint venture NAM – and Dutch state holding EBN are co-owners.
Exxon's vice president for investor relations Jeff Woodbury told analysts that in West Africa the company had made "really good progress" in exploration, but that national budgets were facing the strain of lower energy prices, which in turn was slowing investment. Exxon had a strong pipeline of investment opportunities there but had to move forward at a pace that its partners could afford, he said.
Mark Smedley