Equinor announced the sanction of a waterflood project in the St. Malo field in the U.S. Gulf of Mexico that will increase the oil recovery from the field.
Located approximately 280 miles south of New Orleans, LA., the St. Malo field has an estimated remaining production life of 30 years.
This waterflood project, sanctioned in the resource-rich Wilcox formation in the deepwater Gulf of Mexico, is expected to contribute an estimated ultimate recovery of more than 150-175 million barrels of oil equivalent. Equinor holds a 21.5 per cent working interest in the St. Malo field.
The project will include two new production wells, three new injector wells, and topsides injection equipment to the Jack/St. Malo floating production unit, allowing us to extend the life of the field.
“We are pleased to announce this decision, which will further boost our production of high-value barrels from the Gulf of Mexico,” said Chris Golden, senior vice president for Equinor’s North America offshore portfolio.
Equinor has an ambition to grow and strengthen its US offshore portfolio, currently producing over 130,000 boe/day in total.
Chevron, through its subsidiaries, Chevron U.S.A. Inc. and Union Oil Company of California, holds a 51 percent working interest in the St. Malo field, with co-owners MP Gulf of Mexico, LLC (25%) (owned by Murphy Oil Corporation 80% and Petrobras America Inc. 20%), Equinor Gulf of Mexico LLC (21.5%), Exxon Mobil Corporation (1.25%) and Eni Petroleum US LLC (1.25%).