Potential for joint development of two discoveries and one prospect in Keathley Canyon

SAN RAMON, Calif.--(BUSINESS WIRE)--Jan. 28, 2015-- Chevron Corporation (NYSE:CVX) today announced its subsidiary, Chevron U.S.A. Inc., will work with BP Exploration and Production Inc. (BP) and ConocoPhillips Company (ConocoPhillips) to explore and appraise 24 jointly-held offshore leases in the northwest portion of Keathley Canyon in the deepwater Gulf of Mexico. Chevron will be the operator.

“Chevron has a proven track record for delivering superior results in complex deepwater developments,” said Jay Johnson, senior vice president, Upstream, Chevron Corporation. “We will work with our co-owners to evaluate how to develop these leases, along with our recently announced discovery at Guadalupe.”

The transaction encompasses the Tiber and Gila discoveries, and the Gibson exploratory prospect. Chevron recently acquired an interest in Tiber and Gila from BP. Chevron, BP and ConocoPhillips already held interests in the Gibson prospect. The scope of the collaboration between Chevron, BP and ConocoPhillips includes further exploration and appraisal of these leases as well as evaluating the potential of a centralized production facility, which would provide improved capital efficiency, similar to Chevron’s Jack/St. Malo project. Chevron, BP and ConocoPhillips also plan to work together to achieve efficiencies in schedule, realize cost savings, and optimize the use of human resources.

“Chevron has a leading position in the deepwater Gulf of Mexico,” said Jeff Shellebarger, president, Chevron North America Exploration and Production Company. “By collaborating across several prospects and discoveries, and incorporating the technologies and experience of the three companies, we expect to develop these fields in the most cost effective way and shorten the time to final investment decision and first production.”

The recently-announced discovery at Guadalupe, located adjacent to Keathley Canyon, could also be developed by utilizing the centralized production facility. Chevron, BP, and Venari, the Guadalupe co-owners, will evaluate this possibility during the upcoming appraisal phase of that discovery.

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; 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.

Editor’s Note:

Ownership percentages are:

Recent history of Chevron-operated discoveries in the U.S. Gulf of Mexico:

• Big Foot (2006)
• Buckskin (2009)
• Moccasin (2011)
• Coronado (2013)
• Guadalupe (2014)
• Anchor (2015)

Recent history of Chevron-operated field development projects in the U.S. Gulf of Mexico:

• Blind Faith (2008)
• Tahiti (2009)
• Jack/St. Malo (2014)
• Big Foot (2015, in progress)

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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," "may," "could," "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.

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Source: Chevron Corporation

Chevron Corporation
Cam Van Ast, +1 713-372-0063 (Houston)