Chevron sanctions Anchor project in U.S. Gulf of Mexico

Dec 15, 2019
2 min read
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Chevron announced it has sanctioned the Anchor project in the deepwater of U.S. Gulf of Mexico with initial investment set to reach US$5.7 billion.

The Anchor Field is located in the Green Canyon area, 225 km off the coast of Louisiana, in water depths of approximately 1,524 meters.

The initial development of the project will require an investment of approximately $5.7 billion. Stage 1 of the Anchor development consists of a seven-well subsea development and semi-submersible floating production unit. First oil is anticipated in 2024.

The planned facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The total potentially recoverable oil-equivalent resources for Anchor are estimated to exceed 440 million barrels.

“This decision reinforces Chevron’s commitment to the deepwater asset class,” said Jay Johnson, executive vice president, Upstream, Chevron Corporation. “We expect to continue creating value for shareholders by delivering stand-alone development projects and sub-sea tie backs at a competitive cost.”

“For new projects in the Gulf of Mexico, we have reduced development costs by nearly a third, compared to our last generation of greenfield deepwater investments,” said Steve Green, president of Chevron North America Exploration and Production. “We’re doing this by standardising equipment, utilising fit-for-purpose surface facilities that require less capital and employing drill to fill strategies. At Anchor, we streamlined our front-end engineering and design phase and are utilising more industry standards in our designs and equipment to lower costs while maintaining Operational Excellence.”

Chevron is operator and holds a 62.86 per cent working interest in the Anchor project. Co-owner Total holds 37.14 per cent working interest.