Crude Oil and Natural Gas to be Produced From Record-Setting Depth of 8,000
Feet
SAN RAMON, Calif., Oct. 26 /PRNewswire-FirstCall/ -- Chevron
Corporation (NYSE: CVX) announced today that it will develop, with project
co-owners, the Great White, Tobago and Silvertip fields in the U.S. Gulf of
Mexico, approximately 200 miles south of Freeport, Texas. The fields will
be produced via the Perdido Regional Development host (a direct vertical
access spar tethered to the seabed). Perdido will be the deepest spar
production facility in the world, moored in about 8,000 feet of water.
First production from Perdido is expected around the turn of the decade,
with the facility capable of handling 130,000 barrels of oil-equivalent per
day.
The concept for regional development of several fields includes a
common processing hub in Alaminos Canyon Block 857 near the Great White
discovery that incorporates drilling and capabilities to gather, process
and export production within a 30-mile radius of the facility. This concept
will provide regional synergies, reduced costs and lower risks. It also
will reduce the number and size of the facilities and operations in this
challenging frontier area.
"This project adds to the already impressive list of opportunities and
projects we are aggressively developing to bring new supplies to markets
for consumers and to create additional value for our stockholders," said
George Kirkland, executive vice president, Upstream and Gas, Chevron
Corporation. "We are well positioned today to develop energy supplies that
were not within our reach even 10 years ago. But at the same time, we are
approaching these investment decisions with rigor to ensure we are
maintaining a high degree of capital stewardship and control over costs. "
Chevron is at the forefront of efforts to develop crude oil and natural
gas from the Lower Tertiary play in the western deepwater Gulf of Mexico.
Chevron operates two other fields that have been discovered in the Perdido
area, Tiger and Trident, and owns interests in two exploration prospects,
Whale and North Brontosaurus. Aside from participating in the Perdido
Development in Alaminos Canyon, the company received worldwide coverage for
its record-setting production test well at its Jack discovery in September
2006. The company also is developing the $3.5 billion Tahiti project in the
Green Canyon area, which is expected to achieve first production in 2008.
Chevron is the leading acreage holder in the Gulf of Mexico's deep water
and in the Lower Tertiary region.
Chevron owns 37.5 percent of the Perdido Regional Host. It will be
jointly owned by Shell, operator, with 35 percent and BP with 27.5 percent.
Great White is located in Alaminos Canyon 812, 813, 814, 857, 900 and 901
and is owned by Shell, operator, with 33.34 percent, Chevron with 33.33
percent and BP with 33.33 percent.
Tobago is located in Alaminos Canyon 859 in approximately 9,600 feet of
water. Chevron owns 57.5 percent along with its co-owners Shell, operator,
with 32.5 percent and Nexen with 10 percent. The discovery well was drilled
in 2004 to a total depth of 18,510 feet. A sidetrack well was drilled to
18,425 feet.
Silvertip, in Alaminos Canyon 815, is 60 percent owned by Chevron and
operated by Shell with 40 percent interest. Chevron drilled the AC 815 No.
1 discovery well in August 2004 in approximately 9,200 feet of water to a
total depth of 14,778 feet.
Chevron Corporation is one of the world's leading energy companies.
With more than 53,000 employees, Chevron subsidiaries conduct business in
approximately 180 countries around the world, producing and transporting
crude oil and natural gas, and refining, marketing and distributing fuels
and other energy products. Chevron is based in San Ramon, Calif. More
information on Chevron is available at http://www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the
Purpose of "Safe Harbor" Provisions of the Private Securities Litigation
Reform Act of 1995.
Some of the items discussed in this press release include
forward-looking statements about Chevron's activities in the U.S. Gulf of
Mexico. Words such as "anticipates," "expects," "intends," "plans,"
"targets," "projects," "believes," "seeks," "estimates" 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 factors that
could cause actual results to differ materially are changes in demand for,
and prices of, crude oil and natural gas, the results of drilling and
testing, local political events, civil unrest, weather and general economic
conditions. You 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.
SOURCE Chevron Corp.
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Related links:
http://www.chevron.com
CONTACT:
Donald Campbell of Chevron Corp.,
+1-925-842-2589
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