Current CVX Stock Info

Chevron Corporation (ticker: CVX) announced this week that crude oil and natural gas production has begun at the Jack and St. Malo offshore project in the Lower Tertiary trend, deepwater U.S. Gulf of Mexico. Jack/St. Malo was delivered on time and on budget, reports the company.

Production from the first development stage is expected to ramp up over the next several years to a total rate of 94 MBOPD of crude oil and 21 MMcf/d. With a planned production life of more than 30 years, current technologies are anticipated to recover in excess of 500 MMBOE.

“The Jack/St. Malo project delivers valuable new production and supports our plan to reach 3,100 MBOPD by 2017,” said George Kirkland, vice chairman and executive vice president, Upstream, Chevron Corp.

The Jack and St. Malo fields are located within 25 miles of each other in approximately 7,000 feet of water in the Walker Ridge area, approximately 280 miles south of New Orleans, Louisiana. The fields were co-developed with subsea completions flowing back to a single host, semi-submersible floating production unit located between the fields. The facility is the largest of its kind in the Gulf of Mexico and has a production capacity of 170 MBOPD and 42 MMcf/d, with the potential for future expansions.

Crude oil from the facility will be transported approximately 140 miles to the Green Canyon 19 Platform via the Jack/St. Malo Oil Export Pipeline, and then onto refineries along the Gulf Coast.

Chevron, through its subsidiary, Chevron U.S.A. Inc., has a working interest of 50% in the Jack field, with co-owners Statoil (25%; ticker: STO) and Masersk Oil (25%; ticker: AMKBY). Chevron, through its subsidiaries, Chevron U.S.A. Inc. and Union Oil Company of California, also holds a 51% working interest in the St. Malo field, with co-owners Petrobras (25%; ticker; PBR), Statoil (21.5%), ExxonMobil (1.25%; ticker: XOM) and Eni (1.25%; ticker: E); and a 40.6% ownership interest in the host facility, with co-owners Statoil (27.9%), Petrobras (15%), Maersk Oil (5%), ExxonMobil (10.75%) and Eni (0.75%).

Chevron’s overall deepwater production was around 350 MBOEPD last year, reports Forbes. Hydrocarbons produced from deepwater fields in the Gulf of Mexico made up around 60% of that. The company expects to boost its overall net hydrocarbon production from deepwater reserves by approximately 30% by 2017.

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