Chevron Sanctions Development of Deepwater Jack/St. Malo Project in the Gulf of Mexico; Initial Development Cost of ~$7.5B
Chevron Corporation has sanctioned development of the Jack/St. Malo project, its first operated project located in the Lower Tertiary trend in the deepwater US Gulf of Mexico. The Jack and St. Malo fields are located within 25 miles (40 km) of each other approximately 280 miles (450 km) south of New Orleans, Louisiana, in water depths of 7,000 feet (2,100 m).
|The Lower Tertiary trend. Click to enlarge.|
By comparison, the water depth of BP’s MC252 well (of the Deepwater Horizon disaster) was approximately 5,023 feet (1,522 meters).
The initial development of the Chevron project will require an investment of approximately $7.5 billion. It will include three subsea centers tied back to a hub production facility with a capacity of 170,000 barrels of oil and 42.5 million cubic feet of natural gas per day. Startup is anticipated in 2014.
The Jack and St. Malo fields are estimated to contain combined total recoverable resources in excess of 500 million oil-equivalent barrels. Seven exploration and appraisal wells have been successfully and safely drilled at these fields since 2003. Chevron, through its subsidiary Chevron USA Inc., has working interests of 50% in the Jack field, 51% in the St. Malo field, and 50.67% in the host facility.
Chevron is one of the top leaseholders in the Gulf of Mexico, averaging net daily production of 149,000 barrels of crude oil, 484 million cubic feet of natural gas and 14,000 barrels of natural gas liquids during 2009.