Chevron okays Jack-St. Malo development in Gulf of Mexico

Chevron Corp., in a move signaled last month with the award of a major contract, has given official sanction to the integrated development of Jack and St. Malo deepwater oil fields in the Lower Tertiary trend of the Gulf of Mexico.

By OGJ editors
HOUSTON, Oct. 21 – Chevron Corp., in a move signaled last month with the award of a major contract, has given official sanction to the integrated development of Jack and St. Malo deepwater oil fields in the Lower Tertiary trend of the Gulf of Mexico (OGJ Online, Sept. 7, 2010).

Chevron will develop the fields, 25 miles apart in 7,000 ft of water, to produce into a semisubmersible floating production unit. Initial investment will be $7.5 billion.

The project covers three subsea centers tied back to the production facility, which will have capacities of 170,000 b/d of oil and 42.5 MMcfd of natural gas. First production is due in 2014.

The contract awarded last month went to Mustang for detail design of the semi’s topsides.

The fields are in the Walker Ridge area 280 miles south of New Orleans. Chevron estimates recoverable resources at more than 500 million boe.

It has drilled seven exploration and appraisal wells in the area since 2003. The Lower Tertiary reservoirs occur at 26,500 ft.

Chevron operates the project with working interests of 50% in Jack field, 51% in St. Malo, and 50.67% in the host facility.

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