20,000 psi technology unlocks new resource
opportunities
Chevron Corporation (NYSE: CVX) announced today it has
sanctioned the Anchor project in the U.S. Gulf of Mexico. This
marks the industry’s first deepwater high-pressure development to
achieve a final investment decision. Delivery of the new
technology, which is capable of handling pressures of 20,000 psi,
also enables access to other high-pressure resource opportunities
across the Gulf of Mexico for Chevron and the industry.
“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 standardizing equipment, utilizing
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 utilizing more
industry standards in our designs and equipment to lower costs
while maintaining Operational Excellence.”
The Anchor Field is located in the Green Canyon area,
approximately 140 miles (225 km) off the coast of Louisiana, in
water depths of approximately 5,000 feet (1,524 m). 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. Chevron, through its
subsidiary Chevron U.S.A. Inc., is operator and holds a 62.86
percent working interest in the Anchor project. Co-owner TOTAL
E&P USA, Inc. holds 37.14 percent working interest.
Chevron Corporation is one of the world’s leading integrated
energy companies. Through its subsidiaries that conduct business
worldwide, the company is involved in virtually every facet of the
energy industry. Chevron explores for, produces and transports
crude oil and natural gas; refines, markets and distributes
transportation fuels and lubricants; manufactures and sells
petrochemicals and additives; generates power; and develops and
deploys technologies that enhance business value in every aspect of
the company’s operations. Chevron is based in San Ramon, Calif.
More information about Chevron is available at www.chevron.com.
NOTICE
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
NOTICE
This news release contains forward-looking statements relating
to Chevron’s operations that are based on management’s current
expectations, estimates and projections about the petroleum,
chemicals and other energy-related industries. Words or phrases
such as “anticipates,” “expects,” “intends,” “plans,” “targets,”
“forecasts,” “projects,” “believes,” “seeks,” “schedules,”
“estimates,” “positions,” “pursues,” “may,” “could,” “should,”
“will,” “budgets,” “outlook,” “trends,” ”guidance,” “focus,” “on
schedule,” “on track,” "is slated,” “goals,” “objectives,”
“strategies,” “opportunities,” “poised” and similar expressions are
intended to identify such forward-looking statements. These
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and other factors, many of which
are beyond the company’s control and are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements.
The reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this news release.
Unless legally required, Chevron undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices; changing refining,
marketing and chemicals margins; the company's ability to realize
anticipated cost savings and expenditure reductions; actions of
competitors or regulators; timing of exploration expenses; timing
of crude oil liftings; the competitiveness of alternate-energy
sources or product substitutes; technological developments; the
results of operations and financial condition of the company's
suppliers, vendors, partners and equity affiliates, particularly
during extended periods of low prices for crude oil and natural
gas; the inability or failure of the company’s joint-venture
partners to fund their share of operations and development
activities; the potential failure to achieve expected net
production from existing and future crude oil and natural gas
development projects; potential delays in the development,
construction or start-up of planned projects; the potential
disruption or interruption of the company’s operations due to war,
accidents, political events, civil unrest, severe weather, cyber
threats and terrorist acts, crude oil production quotas or other
actions that might be imposed by the Organization of Petroleum
Exporting Countries and other producing countries, or other natural
or human causes beyond the company’s control; changing economic,
regulatory and political environments in the various countries in
which the company operates; general domestic and international
economic and political conditions; the potential liability for
remedial actions or assessments under existing or future
environmental regulations and litigation; significant operational,
investment or product changes required by existing or future
environmental statutes and regulations, including international
agreements and national or regional legislation and regulatory
measures to limit or reduce greenhouse gas emissions; the potential
liability resulting from pending or future litigation; the
company’s future acquisitions or dispositions of assets or shares
or the delay or failure of such transactions to close based on
required closing conditions; the potential for gains and losses
from asset dispositions or impairments; government-mandated sales,
divestitures, recapitalizations, industry-specific taxes, tariffs,
sanctions, changes in fiscal terms or restrictions on scope of
company operations; foreign currency movements compared with the
U.S. dollar; material reductions in corporate liquidity and access
to debt markets; the effects of changed accounting rules under
generally accepted accounting principles promulgated by
rule-setting bodies; the company's ability to identify and mitigate
the risks and hazards inherent in operating in the global energy
industry; and the factors set forth under the heading “Risk
Factors” on pages 18 through 21 of the company’s 2018 Annual Report
on Form 10-K and in subsequent filings with the U.S. Securities and
Exchange Commission. Other unpredictable or unknown factors not
discussed in this news release could also have material adverse
effects on forward-looking statements.
Certain terms, such as “resource” and “potentially recoverable
oil-equivalent resources” may be used in this news release to
describe certain aspects of the company’s portfolio and oil and gas
properties beyond the proved reserves. For definitions of, and
further information regarding, these and other terms, see the
“Glossary of Energy and Financial Terms” on pages 54 through 55 of
the company’s 2018 Supplement to the Annual Report and available at
chevron.com. As used in this news release, the term “project” may
describe new upstream development activity, including phases in a
multiphase development, maintenance activities, certain existing
assets, new investments in downstream and chemicals capacity,
investment in emerging and sustainable energy activities, and
certain other activities. All of these terms are used for
convenience only and are not intended as a precise description of
the term “project” as it relates to any specific government law or
regulation.
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version on businesswire.com: https://www.businesswire.com/news/home/20191212005046/en/
Veronica Flores-Paniagua, +1-713-372-0063
Chevron (NYSE:CVX)
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