Chevron starts $5.7bn Gulf of Mexico oilfield project

Chevron said the facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The first oil from the field is expected to be delivered in 2024.

“This decision reinforces Chevron’s commitment to the deep-water asset class,” said Jay Johnson, executive vice-president, upstream, “we expect to continue creating value for shareholders by delivering standalone development projects and sub-sea tie backs at a competitive cost.”

Steve Green (pictured), president of Chevron North America exploration and production, said: “For new projects in the Gulf of Mexico, we have reduced development costs by nearly a third, compared to our last generation of greenfield deep-water investments.

“We’re doing this by standardizing equipment, utilizing fit-for-purpose surface facilities that require less capital and employing drill-to-fill strategies.”

In 2019, Chevron’s net oil production was a record 3.06 million barrels a day.