Chevron’s new Gulf of Mexico project could produce 75,000 barrels of oil per day

0

Chevron is moving forward with a deepwater project in the Gulf of Mexico that could produce 75,000 barrels of crude oil per day, the company said.

The Ballymore Project will be developed approximately 160 miles southeast of New Orleans in waters deeper than 6,000 feet. The San Ramon, Calif.-based oil giant estimates recoverable oil in the region to be over 150 million barrels, with oil production expected to begin in 2025.

“Once complete, Ballymore is expected to add a reliable supply of U.S.-generated power to help meet global demand,” Steve Green, president of Chevron North America Exploration and Production, said in a statement. “The project is designed to reduce development costs by using a subsea tie-in approach, standardized equipment and repeatable engineering solutions – leveraging existing operated infrastructure.”

RELATED: The energy sector is undergoing a transformation. To see it, look towards the Gulf of Mexico.

This is the current trend in the Gulf of Mexico: companies are launching new projects close to existing infrastructure to reduce costs and bring projects online much faster than the seven to 10 years it takes for a brand new drilling operation.

The Ballymore project will take advantage of existing infrastructure to transport oil and natural gas. It is being developed near an existing platform operated by Chevron and involves three producing wells connected to the existing platform.

The company estimates the project will cost around $1.6 billion. Chevron is the operator of the project with a 60% stake and the French TotalEnergies holds 40%.

Chevron’s competitor, BP, puts its Argos platform online; it is an expansion of a current BP development and will connect to existing infrastructure. Another competitor, Shell, is bringing its Vito platform online with a production capacity of up to 100,000 barrels per day, taking advantage of the pipeline network that already crosses the Gulf.

Chevron produces an average of 180,000 barrels of crude per day in the Gulf. The other supermajors operating in the Gulf of Mexico – BP and Shell – pump around 300,000 barrels per day and 337,000 barrels per day, respectively.


Source link

Share.

Comments are closed.