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Chevron Discovers Oil in the Gulf of Mexico

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Chevron discovers oil

Chevron (CVX) has announced a huge deep-water oil discovery at Ballymore in the US Gulf of Mexico. Ballymore is located in the Mississippi Canyon. Let’s take a look at the details of the discovery.

Ballymore is located at a water depth of 6,536 feet, around three miles from CVX’s Blind Faith platform. The initial well, at a depth of 29,194 feet, has encountered a hydrocarbon reservoir. The discovered reservoir is a 670-foot great-quality oil play. Pacific Drilling’s Sharav drillship drilled the Ballymore well. Chevron is in the process of drilling a sidetrack well to further examine the development prospects. Chevron’s (CVX) subsidiary Chevron USA is the operator of the field with a 60% stake. Another 40% stake is held by Total’s (TOT) subsidiary Total E&P USA.

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A word from management

Jeff Shellebarger, president of Chevron North America Exploration and Production, stated, “The Gulf of Mexico deepwater is an integral part of our company’s long-term strategy. This discovery is an important addition to our portfolio, especially with its combination of size, quality, and proximity to existing infrastructure.”

Chevron’s robust US Gulf of Mexico portfolio

In the US Gulf of Mexico, Chevron has three major deep-water projects: Big Foot, Tahiti Vertical Expansion, and Jack/St. Malo. All three projects are at significant depths, putting Chevron’s technology and experience in play. Jack/St. Malo, which Chevron estimates to recover 500 million barrels of oil-equivalent resources, is located 30,000 feet beneath the ocean’s surface. The Tahiti vertical aims to expand production in sands above the developed reservoir, around 25,000 feet below sea level. Big Foot is expected to use the world’s deepest tension-leg platform.

The latest discovery in Ballymore marks a significant addition to the company’s robust Gulf of Mexico portfolio. It’s no surprise that the Gulf of Mexico is Chevron’s exploration focus area. See the map above for Chevron’s exploration focus areas globally.

We’ll discuss Chevron’s upstream portfolio in the next part of this series.

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