By Chris Wack

 

Chevron Corp. said it has sanctioned the Ballymore project in the deepwater U.S. Gulf of Mexico.

The oil company said the project, with a design capacity of 75,000 barrels of crude oil per day, will be developed as a three-mile subsea tieback to the existing Chevron-operated Blind Faith platform.

The project, which involves three production wells tied back via one flowline to Blind Faith, will require an investment of about $1.6 billion. Oil and natural gas production will be transported via existing infrastructure. First oil is expected in 2025.

Chevron said that once complete, Ballymore is expected to add a "reliable supply of U.S.-produced energy to help meet global demand." The project is designed to lower development costs by using a subsea tieback approach, standardized equipment and repeatable engineering solutions.

Ballymore will be Chevron's first development in the Norphlet trend of the U.S. Gulf. The project will be in the Mississippi Canyon area, about 160 miles southeast of New Orleans. Potentially recoverable oil-equivalent resources for Ballymore are estimated at more than 150 million barrels.

Chevron subsidiary Chevron U.S.A. Inc. is the operator of the Ballymore project with a 60% working interest. Co-owner TotalEnergies E&P USA Inc. has a 40% interest.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

May 17, 2022 08:39 ET (12:39 GMT)

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