Chevron Approves High-Pressure Anchor Project in Gulf of Mexico

By Colin Kellaher

Chevron Corp. (CVX) Thursday said it is moving forward with a multibillion-dollar project in the Gulf of Mexico that will use a new high-pressure drilling technology.

The San Ramon, Calif., energy giant said the Anchor project, which will require an initial development investment of roughly $5.7 billion, is the industry's first deepwater high-pressure development to achieve a final investment decision.

Chevron operates and holds a 62.86% working interest in the Anchor project, located in the Green Canyon area about 140 miles off the coast of Louisiana. Total E&P USA Inc., a unit of French oil major Total S.A. (TOT), holds a 37.14% stake.

Chevron said the new technology, which can handle pressures of 20,000 pounds per square inch, opens the door to other resource opportunities across the Gulf of Mexico.

Chevron said the first stage of the development consists of a seven-well subsea development and a semi-submersible floating production unit, with the first oil expected in 2024.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

December 12, 2019 09:04 ET (14:04 GMT)

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