Must be making tons of money now.
Tells you how short sighted MW is. The upstream industry is like this, losses year after year but then it suddenly rains and then it pours cash!
10 replies (most recent on top)
Blame AM and Janeen J. Janeen later allowed to exit the company as President of SPE.
Angola was a mistake Chevron inherited from Texaco. Like Brazil, we've never learned how to cut our losses in countries in which we never make a profit.
- ALNG was intended to leverage Oil Leases with the Angolan Government as well as being a bonafide O&G venture.
- ALNG construction contract was the worst I have ever seen. Totally biased towards Contractor (long story there which most people don't know). The results are known. The Chevron folks that oversaw the work are to be commended for doing damage control under difficult circumstances.
- The LNG liquefaction process selected works efficiently only under a very narrow range of gas compositions.
“ Look in the 2020 annual report and you will see we continued pouring money into it (more than $2 billion dollars) with nothing to show for it (a $166 million loss).”
Exactly what I mean, now look over the next few years and see how much it makes, it will pour cash.
Everything Chevron has in Angola has been a money loser and organizational disaster. No expats who have been there have ever asked to go back. ALNG makes Gorgon look like a well-oiled machine.
ALNG has been a fiasco from the beginning - an LNG project managed by the company with the least Angola gas and least LNG experience, from across the Congo canyon from the plant with gas owned by the government. And it was an operational disaster from day one when they turned the plant on and it was nearly destroyed. Look in the 2020 annual report and you will see we continued pouring money into it (more than $2 billion dollars) with nothing to show for it (a $166 million loss).
I’m not necessarily a MW fan, but I think he and the BoD are playing a pretty good long game right now with “green” acquisitions and diversifying the company’s energy projects. Any company that ignores the money to be made from carbon credit trading schemes is doing a disservice to their shareholders. The market for these credits is massive and expanding daily.
Point is that ALNG was long derided as one of the worst investments CVX ever made.
No they sold AMBU for 750 million and could have hold.on to it and make a ton of money now or sell it at least 5 times more!
I dont get your point. Are you under the impression that we sold ALNG?