Chevron Delays Lianzi Production Date, Cuts Output

Chevron Corp., the second-largest U.S. oil company, said crude production from its Lianzi field off the coast of West Africa will begin a year later and will be 1,000 barrels a day less than estimated.

The $2 billion project in a zone between the Republic of Congo and Republic of Angola will produce as much as 46,000 barrels of oil equivalent a day, San Ramon, California-based Chevron said today in a statement announcing its intent to proceed with production. The company had estimated 2014 for first oil output and a maximum rate of 47,000 barrels a day in a March 13 presentation to analysts.

The company got a clearer sense of the timing for first oil as it moved closer to the decision to proceed with the project, Kurt Glaubitz, a Chevron spokesman, said in an e-mail today.

Lianzi is 65 miles (105 kilometers) offshore in about 3,000 feet (900 meters) of water. Chevron owns a 31.25 percent stake in the project and is the operator. Total SA owns 36.75 percent, Eni SpA and Sonangol EP each own 10 percent, Galp Energia SGPS SA owns 4.5 percent and the Republic of Congo’s national oil company owns 7.5 percent, according to the statement.

Exxon Mobil is the largest U.S. energy company.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE