Chevron and TotalEnergies’ $5.7 billion floating production unit has a gross capacity of 75,000 bb/d and 28 MMcf/d. (Source: Chevron)
Chevron has started oil and natural gas production from the Anchor project in the deepwater Gulf of Mexico, the company said on Aug. 12.
Anchor production marks the successful delivery of high-pressure technology rated to safely operate at up to 20,000 psi, with reservoir depths reaching 34,000 ft below sea level, Chevon said in a press release. The $5.7 billion project reached final investment decision in 2019.
The Anchor semisubmersible floating production unit (FPU) has a gross design capacity of 75,000 bbl/d of oil and 28 MMcf/d of natural gas.
The Anchor development will consist of seven subsea wells tied into the Anchor FPU, located in the Green Canyon area, approximately 140 miles (225 km) off the coast of Louisiana, in water depths of approximately 5,000 ft (1,524 m).
Total recoverable resources from the Anchor Field are estimated to be up to 440 MMboe.
"The Anchor project represents a breakthrough for the energy industry," said Nigel Hearne, executive vice president, Chevron oil, products & gas. "Application of this industry-first deepwater technology allows us to unlock previously difficult-to-access resources and will enable similar deepwater high-pressure developments for the industry."
Bruce Niemeyer, president, Chevron Americas Exploration & Production, said Chevron has demonstrated its ability to safely deliver projects within budget in the GoM.
"The Anchor project provides affordable, reliable, lower carbon intensity oil and natural gas to help meet energy demand, while boosting economic activity for Gulf Coast communities," he said.
The Anchor FPU is Chevron's sixth operated facility currently producing in the GoM. Chevron's operated and non-operated facilities in the Gulf are expected to produce a combined 300,000 net boe/d by 2026.
To reduce carbon emissions, the Anchor FPU was designed as an all-electric facility with electric motors and electronic controls. Additionally, the FPU utilizes waste heat and vapor recovery units as well as existing pipeline infrastructure to transport oil and natural gas directly to U.S. Gulf Coast markets.
Chevron, through its subsidiary Chevron U.S.A. Inc., is operator and holds a 62.86% working interest in the Anchor project. Co-owner TotalEnergies E&P USA Inc. holds a 37.14% working interest.
RELATED
Recommended Reading
No Rush: Post-M&A Frenzy, Divestiture Market to Pick Up by 2025
2024-10-07 - Lenders with a variety of capital structures are poised to fund the upcoming portfolio rationalization in the post-consolidation era, bankers and deal advisers said at Hart Energy’s Energy Capital Conference.
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Private Equity Gears Up for Big Opportunities
2024-10-04 - The private equity sector is having a moment in the upstream space.
Exxon, Chevron Beat 3Q Estimates, Output Boosts Results
2024-11-01 - Oil giants Chevron and Exxon Mobil reported mixed results for the third quarter, with both companies surpassing Wall Street expectations despite facing different challenges.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.