Chevron’s FID on GoM Anchor project

Chevron Corp’s CVX has made a final investment decision (FID) on its Gulf of Mexico (GoM) Anchor project. This FID marks the oil and gas industry’s first deepwater high-pressure development. It is located about 140 miles off the coast of Louisiana in 5,000 feet of water. The Anchor project is estimated to churn out 75,000 barrels of crude oil and 28M cubic feet of natural gas per day. Recoverable reserves may surpass 440M barrels. Chevron is the chief operator of the project’s (62.86%) working interest. The co-owner is TOTAL S.A., Inc. TOT holds 37.14% share. Initial development of the project is worth $5.7B, and will comprise 7-well subsea development and semi-submersible floating production units. The field is scheduled to come online in 2024. Chevron is one of the largest leaseholders in the GoM. In 2018, the Chevron’s net output from the GoM amounted to 186,000 barrels of crude oil per day, 105M cubic feet of natural gas daily, and 13,000 barrels of natural gas liquids each day. For new projects in the GoM, the company is taking measures such as reducing its development costs on the back of standardizing equipment that requires less capital and employing drill-to-fill strategies. Chevron also is simplifying front-end engineering and design and taking advantage of better industry standards while retaining operation efficiency. Last year, Chevron announced production from its Big Foot deepwater project in the GoM. The field has a capacity of 75,000 barrels of crude oil and 25M cubic feet of natural gas a day. The production site, at a water depth of nearly 5,200 feet. It is located around 260 miles south of New Orleans. The Big Foot field has an estimated production life of 35 years. (Source: Zack’s Equity 12/3/19) https://finance.yahoo.com/news/chevron-makes-fid-anchor-field-142102813.htm