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Chevron to develop West African field

SAN RAMON, Calif. (AP) -- Chevron Corp. said Monday that it will lead a deepwater drilling project off the west African coast.

A Chevron subsidiary will develop the Lianzi field that the San Ramon, Calif., company jointly owns with Total SA, Eni SpA, Sonangol EP, Galp Energia Group and Congo's national oil company.

The project, which is expected to cost $2 billion to develop, is 65 miles off the coasts of the Republic of Congo and the Republic of Angola.

"Lianzi represents a unique cooperative approach to shared offshore resources and may serve as a model for the development of similar cross-border fields between the two countries," said Ali Moshiri, president of Chevron Africa and Latin America Exploration and Production Company.

The field sits 3,000 feet underwater. When completed in 2015, the project is expected to produce a maximum of 46,000 barrels of oil and natural gas per day.

Chevron shares rose 46 cents to $109.72 in afternoon trading Monday. They are approaching their 52-week high of $112.28.