Chevron Corp. says that it has begun crude oil and natural gas production at two fields off the Louisiana coast that are among the largest in the Gulf of Mexico. The St. Malo and Jack fields were discovered in 2003 and 2004, respectively, and Chevron says production from the first development stage is expected to ramp up in the coming years to an anticipated daily rate of 94,000 barrels of crude oil and 21 million cubic feet of natural gas.
“The Jack/St. Malo project delivers valuable new production and supports our plan to reach 3.1 million barrels per day by 2017,” says George Kirkland, Chevron’s vice chairman and executive vice president of upstream operations, in a prepared statement.
The fields are located within 25 miles of one another in approximately 7,000 feet of water, about 280 miles south of New Orleans. They have a planned production life of more than 30 years, during which Chevron says it hopes to produce more than 500 million barrels of oil equivalent from the fields.
Chevron says a floating production unit that was built between the fields over the past decade is the largest of its kind in the Gulf and has a daily production capacity of 170,000 barrels of oil, as well as 42 million cubic feet of natural gas. The company says the facility has potential for expansion if needed.
“Jack/St. Malo is the result of the collaboration of hundreds of suppliers and contractors and many thousands of people across nine countries over a 10-year period,” says Jeff Shellebarger, president of Chevron North America Exploration and Production Co.
“This project highlights our long-term commitment to the U.S. Gulf of Mexico, where Chevron is among the top leaseholders,” Shellebarger says. “Moreover, we expect Jack/St. Malo will continue to deliver sustained economic and community benefits, including job creation, along the Gulf Coast.”
Chevron has a working interest of 50% in the Jack field, while Statoil and Maersk Oil each own 25% stakes. Chevron has a 51% interest in the St. Malo field, with other co-owners including Petrobras (25%), Statoil (21.5%), ExxonMobil (1.25%) and Eni (1.25%). Chevron also owns a 40.6% stake in the production facility between the two fields; co-owners include Statoil (27.9%), Petrobras (15%), Maersk Oil (5%), ExxonMobil (10.75%) and Eni (0.75%).
