BMW Group shares on GitHub AI algorithms used in production
California, 7 states and DC commit to faster transition to zero-emission trucks and buses; next step is formal agreement

Chevron sanctions Anchor project in GOM; first deepwater high-pressure development

Chevron Corporation has sanctioned the Anchor project in the US Gulf of Mexico (GOM). This marks the industry’s first deepwater high-pressure development to achieve a final investment decision. Delivery of the new technology, which is capable of handling pressures of 20,000 psi, also enables access to other high-pressure resource opportunities across the Gulf of Mexico for Chevron and the industry.

Chevron-sanctions-anchor-project-gulf-of-mexico-map

The Anchor Field is located in the Green Canyon area, approximately 140 miles (225 km) off the coast of Louisiana, in water depths of approximately 5,000 feet (1,524 m). The initial development of the project will require an investment of approximately $5.7 billion.

Stage 1 of the Anchor development consists of a seven-well subsea development and semi-submersible floating production unit. First oil is anticipated in 2024.

The planned facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The total potentially recoverable oil-equivalent resources for Anchor are estimated to exceed 440 million barrels.

Chevron, through its subsidiary Chevron U.S.A. Inc., is operator and holds a 62.86% working interest in the Anchor project. Co-owner TOTAL E&P USA, Inc. holds 37.14% working interest.

This decision reinforces Chevron’s commitment to the deepwater asset class. We expect to continue creating value for shareholders by delivering stand-alone development projects and sub-sea tie backs at a competitive cost.

—Jay Johnson, executive vice president, Upstream, Chevron Corporation

At the 2018 Offshore Technology Conference in Houston, William Turner, Senior Research Analyst, Gulf of Mexico with Wood Mackenzie, observed that the record levels of oil and gas production in the Gulf Of Mexico may begin to decline if the ultra-high pressure reservoirs are not developed. Ultra-high pressure reservoirs are defined as having an operating pressure of up to 20,000 psi.

Turner noted the role of Chevron as a leader in ultra-high pressure reservoir development, and said that the company’s Anchor and Tigris fields “will pave the way.”

For new projects in the Gulf of Mexico, we have reduced development costs by nearly a third, compared to our last generation of greenfield deepwater investments. We’re doing this by standardizing equipment, utilizing fit-for-purpose surface facilities that require less capital and employing drill to fill strategies.

At Anchor, we streamlined our front-end engineering and design phase and are utilizing more industry standards in our designs and equipment to lower costs while maintaining Operational Excellence.

—Steve Green, president of Chevron North America Exploration and Production

Resources

  • DeBruijn, G. & Skeates, C. & Greenaway, R. & Harrison, D. & Parris, M. & James, S. & Mueller, F. & Ray, S. & Riding, M. & Temple, L. & Wutherich, Kevin. (2008) “High-pressure, high-temperature technologies.” Oilfield Review. 20. 46-60.

Comments

The comments to this entry are closed.