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    Chevron Takes FID in Gulf of Mexico

Summary

The project carries a $5.7bn cost.

by: Joseph Murphy

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Natural Gas & LNG News, Americas, Corporate, Exploration & Production, Investments, News By Country, United States

Chevron Takes FID in Gulf of Mexico

Chevron has sanctioned the development of the deepwater Anchor oil and gas field in the Gulf of Mexico, the US major said on December 12.

The $5.7bn project includes seven wells attached to a semi-submersible floating production unit. Production should start in 2024 and ramp up to 75,000 barrels of oil and 28mn ft3 of gas/day.

“This decision reinforces Chevron’s commitment to the deepwater asset class,” said Jay Johnson, Chevron’s upstream vice president, commented. “We expect to continue creating value for shareholders by delivering stand-alone development projects and sub-sea tie backs at a competitive cost.”

Chevron operates the field with a 62.9% interest, while France’s Total controls 37.2%. The pair also work at other permits in Anchor’s vicinity, and any discoveries made in these areas could be tied to the field’s facilities at a competitive cost, Total said in its own statement.

The French company added it had begun front-end engineering design work at another Gulf of Mexico project, the North Platte oil discovery, where it is partnered with Norway’s Equinor.

The field is expected to yield 75,000 barrels/day at capacity, as well as some associated gas. Total aims to take a final investment decision in 2021.