UPDATE: Chevron:Deepwater Drilling Halt To Have 'Lasting' Economic Impact On US

Chevron Corp. (CVX) said Thursday that a drilling ban on deepwater exploration in the Gulf of Mexico ordered by the federal government will have a "lasting" economic impact on the U.S.

"Halting deepwater drilling will have lasting energy security and negative economic consequences for our country," said Mickey Driver, a company spokesman, in an email. "We believe responsible drilling should be allowed to continue."

President Barack Obama ordered Thursday the halt of activities at about 33 exploratory wells in the deep waters of the Gulf of Mexico and also extended a moratorium on new drilling in the area to six months.

Other companies with significant positions in the area, such as Petroleo Brasilerio (PBR, PETR4.BR), BHP Billiton Ltd. (BHP) and Anadarko Petroleum Corp. (APC) said they are still evaluating the impact of the Obama administration's decision. Royal Dutch Shell (RDSA) said it will work with the government during the drilling suspension.

Driver said Chevron, one of the largest oil and gas producers in the Gulf, acknowledged the administration's desire to fully understand and address the underlying cause of the massive spill in the Gulf of Mexico. The spill resulted from the explosion and sinking of Transocean Ltd.'s (RIG) Deepwater Horizon rig, which was leased by BP PLC (BP, BP.LN).

"We share the government's commitment to ensuring that all companies are operating at the same high standards," Driver said. Chevron participated in the Joint Industry Task Force, which made recommendations to the Department of the Interior last week to improve industry operating standards, Driver said.

"Chevron already uses many of these new proposed standards," he added.

Chevron believes it's important that the oil and gas industry restores the public and policy makers' confidence in the safety of deepwater drilling operations by forthrightly addressing misperceptions about safety in deepwater exploration, he added.

State-run Brazil's Petrobras said they are still evaluating the impact of the six-months drilling moratorium extension.

Gustavo Tardin Barbosa, Petrobras America's chief financial officer, said earlier this week the first oil from its Cascade and Chinook projects in the Gulf of Mexico deepwater was scheduled to be produced during the second half of this year, despite the temporary ban in drilling. But these plans could change now due to the fact the moratorium was extended to six months.

"We may revise our plans accordingly," Sophie Gates, a company's spokeswoman, said in an email.

A spokeswoman for BHP Billiton said it's too early to determine how the moratorium extension will impact the company's operation in the Gulf. Earlier this week, BHP's Petroleum Division president, Mike Yeager, said that the company's drilling plans could change if the drilling ban was prolonged.

John Christiansen, Anadarko's spokesman, said the company shares the President's commitment to ensure deepwater operations and exploration are conducted in a safe manner and that it's evaluating the impact of the government's decision on its drilling plans.

-By Isabel Ordonez, Dow Jones Newswires; 713 547-9207; isabel.ordonez@ dowjones.com

(Alex Wilson in Australia contributed to this report)