Deepwater development demonstrates Chevron’s strong project execution
and value creation capabilities
SAN RAMON, Calif.--(BUSINESS WIRE)--Dec. 2, 2014--
Chevron Corporation (NYSE: CVX) announced that crude oil and natural gas
production has begun at the Jack/St. Malo project in the Lower Tertiary
trend, deepwater U.S. Gulf of Mexico. Jack/St. Malo is a key part of
Chevron’s strong queue of upstream projects and was delivered on time
and on budget.
The Jack/St Malo semi-submersible floating production unit is the largest of its kind in the Gulf of Mexico and has a production capacity of 170,000 barrels of oil and 42 million cubic feet of natural gas per day, with the potential for future expansion. (Photo: Business Wire)
The Jack and St. Malo fields are among the largest in the Gulf of
Mexico. They were discovered in 2004 and 2003, respectively, and
production from the first development stage is expected to ramp up over
the next several years to a total daily rate of 94,000 barrels of crude
oil and 21 million cubic feet of natural gas. With a planned production
life of more than 30 years, current technologies are anticipated to
recover in excess of 500 million oil-equivalent barrels. Successive
development phases, which could employ enhanced recovery technologies,
may enable substantially increased recovery at the fields.
“The Jack/St. Malo project delivers valuable new production and supports
our plan to reach 3.1 million barrels per day by 2017,” said George
Kirkland, vice chairman and executive vice president, Upstream, Chevron
Corporation.
“This milestone demonstrates Chevron’s capital stewardship and
technology capabilities, featuring a number of advances in technology
that simply didn’t exist when the fields were discovered,” added Jay
Johnson, senior vice president, Upstream, Chevron Corporation. “These
learnings can now be transferred to other deepwater projects in our
portfolio.”
The Jack and St. Malo fields are located within 25 miles (40 km) of each
other in approximately 7,000 feet (2,100 m) of water in the Walker Ridge
area, approximately 280 miles (450 km) south of New Orleans, Louisiana.
The fields were co-developed with subsea completions flowing back to a
single host, semi-submersible floating production unit located between
the fields. The facility is the largest of its kind in the Gulf of
Mexico and has a production capacity of 170,000 barrels of oil and 42
million cubic feet of natural gas per day, with the potential for future
expansion.
“Jack/St. Malo is the result of the collaboration of hundreds of
suppliers and contractors and many thousands of people across nine
countries over a ten-year period,” said Jeff Shellebarger, president,
Chevron North America Exploration and Production Company. “This project
highlights our long-term commitment to the U.S. Gulf of Mexico, where
Chevron is among the top leaseholders. Moreover, we expect Jack/St. Malo
will continue to deliver sustained economic and community benefits,
including job creation, along the Gulf Coast.”
Crude oil from the facility will be transported approximately 140 miles
to the Green Canyon 19 Platform via the Jack/St. Malo Oil Export
Pipeline, and then onto refineries along the Gulf Coast. The pipeline is
the first large-diameter, ultra-deepwater pipeline in the Walker Ridge
area of the Lower Tertiary trend. The combination of extreme water
depths, large diameter, high-pressure design, and pipeline structures
have set new milestones for the Gulf of Mexico.
The project, which was sanctioned in 2010, has delivered new technology
applications, including the industry’s largest seafloor boosting system
and Chevron’s first application of deepwater ocean bottom node seismic
technology in the Gulf of Mexico, providing images of subsurface layers
nearly 30,000 feet below the ocean floor.
Chevron, through its subsidiary, Chevron U.S.A. Inc., has a working
interest of 50 percent in the Jack field, with co-owners Statoil (25%)
and Maersk Oil (25%). Chevron, through its subsidiaries, Chevron U.S.A.
Inc. and Union Oil Company of California, also holds a 51 percent
working interest in the St. Malo field, with co-owners Petrobras (25%),
Statoil (21.5%), ExxonMobil (1.25%) and Eni (1.25%); and a 40.6 percent
ownership interest in the host facility, with co-owners Statoil (27.9%),
Petrobras (15%), Maersk Oil (5%), ExxonMobil (10.75%) and Eni (0.75%).
Chevron is one of the world’s leading integrated energy companies, with
subsidiaries that conduct business worldwide. The company is involved in
virtually every facet of the energy industry. Chevron explores for,
produces and transports crude oil and natural gas; refines, markets and
distributes transportation fuels and lubricants; manufactures and sells
petrochemical products; generates power and produces geothermal energy;
provides energy efficiency solutions; and develops the energy resources
of the future, including biofuels. Chevron is based in San Ramon, Calif.
More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the
Purpose of “Safe Harbor” Provisions of the Private Securities Litigation
Reform Act of 1995.
Some of the items discussed in this press release are forward-looking
statements about Chevron. Words such as "anticipates," "expects,"
"intends," "plans," "targets," "forecasts," "projects," "believes,"
"seeks," "schedules," "estimates," "budgets," "outlook" and similar
expressions are intended to identify such forward-looking statements.
The statements are based upon management's current expectations,
estimates and projections; are not guarantees of future performance; and
are subject to certain risks, uncertainties and other factors, some of
which are beyond the company's control and are difficult to predict.
Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are changes in
prices of, demand for and supply of crude oil and natural gas; actions
of competitors; the inability or failure of the company's joint-venture
partners to fund their share of operations and development activities;
the potential failure to achieve expected net production from existing
and future crude oil and natural gas development projects; potential
delays in the development, construction or start-up of planned projects;
the potential disruption or interruption of the company's net production
or manufacturing facilities or delivery transportation networks due to
war, accidents, political events, civil unrest, or severe weather;
government-mandated sales, divestitures, recapitalizations and changes
in fiscal terms or restrictions on scope of company operations; foreign
currency movements compared with the U.S. dollar; and general economic
and political conditions. The reader should not place undue reliance on
these forward-looking statements, which speak only as of the date of
this press release. Unless legally required, Chevron undertakes no
obligation to update publicly any forward-looking statements, whether as
a result of new information, future events or otherwise.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20141202005783/en/
Source: Chevron Corporation
Chevron Corporation
Cam Van Ast, Houston, +1 713-372-0063
