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Chevron Overseas (Congo) Limited – a subsidiary of oil major Chevron Corporation (CVX - Analyst Report) – recently announced that it will proceed with the combined development of the Moho Bilondo "Phase 1 bis" and Moho Nord projects, offshore the Republic of the Congo.

The Moho Nord project includes a tension leg platform, a floating production unit with a processing capacity of 100,000 barrels of oil per day. It also involves a new 50-mile pipeline to the onshore Djeno terminal. Moho Nord is the biggest oil and gas project in the Republic of the Congo and is located 46 miles offshore southwest of Pointe-Noire in water depths of about 1,500–4,000 feet. It is expected to extract oil from this project in 2016.

The Moho Bilondo "Phase 1 bis" project will have a processing capacity of 40,000 barrels of oil per day and involves wells tied to an existing floating production unit. With the development of Moho Bilondo 1E, production in this area began in 2008. It is expected to extract oil from this project in 2015.

Total cost of the joint project is expected at $10 billion and full production is anticipated in 2017.

Total E&P Congo, a subsidiary of France’s Total SA (TOT - Analyst Report), is the operator of the projects with a 53.5% stake, while Chevron holds a 31.5% working interest in the same. The remaining 15% stake is held by National Oil Company.

With the development of these projects, Chevron is on an expansion path. This will also help Chevron to achieve its target of 25% production growth by 2017. We believe such accomplishments will garner profits for Chevron in the upcoming quarters.

Chevron currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.

But there are certain other companies in the oil industry that are expected to perform better in the coming 1 to 3 months. These include YPF S.A. (YPF - Snapshot Report) and Statoil ASA (STO - Analyst Report) with Zacks Rank #2 (Buy).

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