Results further demonstrate field’s potential
SAN RAMON, Calif.--(BUSINESS WIRE)--Feb. 28, 2013--
Chevron Corporation (NYSE: CVX) today announced that it had
conducted a successful production test on the St. Malo PS003 well in the
prolific Lower Tertiary trend in the deepwater Gulf of Mexico. Oil flow
rates, though limited by testing equipment constraints, exceeded 13,000
barrels of oil per day.
The test, in Walker Ridge Block 678, targeted Lower Tertiary sands more
than 20,000 feet (6,096 m) under the sea floor and was conducted during
August and September 2012. This is the first development well in the St.
Malo field, which is being jointly developed with the Jack field.
“The well test is a further demonstration of the potential of the Lower
Tertiary and highlights our leadership in developing deepwater resources
globally,” said Chevron Vice Chairman George Kirkland.
“The results of this production test further confirm the significance of
the St. Malo field," said Gary Luquette, president, Chevron North
America Exploration and Production Company. “The jointly developed Jack
and St. Malo fields are expected to provide a major step-up in Chevron’s
production from 2014 and produce domestic energy for decades to come.”
The Jack and St. Malo fields are located within 25 miles (40 km) of each
other and are being jointly developed with a host floating production
unit located between the two fields in 7,000 feet (2,134 m) of water,
approximately 280 miles (450 km) south of New Orleans, Louisiana. The
facility is planned to have a design capacity of 177,000 barrels of
oil-equivalent per day to accommodate production from the Jack/St. Malo
development, which is estimated at a maximum total daily rate of 94,000
barrels of oil-equivalent, plus production from third-party tiebacks.
Total project costs for the initial phase of the development are
estimated at $7.5 billion.
Chevron has a working interest of 51 percent in the St. Malo field.
Other owners of the St. Malo field are Petrobras (25 percent), Statoil
(21.5 percent), ExxonMobil (1.25 percent) and ENI (1.25 percent).
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
This news release contains forward-looking statements about Chevron's
activities in the U.S. Gulf of Mexico. Words such as "anticipates,"
"expects," "intends," "plans," "targets," "projects," "believes,"
"seeks," "schedules," "estimates," "budgets" 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 factors that
could cause actual results to differ materially 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 production and development
activities 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; and general economic and political conditions.
You 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.
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Source: Chevron Corporation
Chevron Corporation
Russell Johnson, +1 713-372-1841
