Chevron and its partner TotalEnergies have started production from the Anchor project in the deepwater US Gulf of Mexico, nearly four years and eight months after making the investment decision.
The partners sanctioned the deepwater oil project in December 2019 with an estimated investment of around $5.7bn for the first stage.
According to Chevron, the launch of production from Anchor demonstrates the effective deployment of advanced high-pressure technology, capable of safely operating at pressures up to 20,000 psi and in reservoir depths reaching 34,000ft below sea level.
The Anchor semi-submersible floating production unit (FPU) is designed to process 75,000 gross barrels of oil per day and 28 million gross cubic feet of natural gas per day.
This development includes seven subsea wells connected to the Anchor FPU, which is located in the Green Canyon area, about 225km off the coast of Louisiana, in water depths of around 5,000ft.
The Anchor field is estimated to hold up to 440 million barrels of oil equivalent in recoverable resources.
Chevron Americas exploration and production president Bruce Niemeyer said: “This Anchor milestone demonstrates Chevron’s ability to safely deliver projects within budget in the Gulf of Mexico.
“The Anchor project provides affordable, reliable, lower carbon intensity oil and natural gas to help meet energy demand, while boosting economic activity for Gulf Coast communities.”
This facility marks Chevron’s sixth operational site in the US Gulf of Mexico. Chevron’s operated and non-operated facilities in the Gulf are projected to produce a total of 300,000 net barrels of oil equivalent per day by 2026.
In its efforts to reduce carbon emissions, the Anchor FPU has been designed as an all-electric facility, incorporating electric motors and electronic controls. The FPU also employs waste heat recovery, vapour recovery units, and existing pipeline infrastructure to transport oil and natural gas directly to markets on the US Gulf Coast.
Chevron, through its subsidiary Chevron U.S.A., is the operator and holds a 62.86% working interest in the Anchor project. TotalEnergies E&P USA, the co-owner, holds a 37.14% working interest.
TotalEnergies exploration and production president Nicolas Terraz said: “The start-up of Anchor is a new milestone in the deployment of TotalEnergies’ integrated energy model in the US, combining the development of oil projects with a high leverage to price and a low emissions intensity and growth in Integrated LNG and Integrated Power.
“Delivered safely, on time and within budget, this project will contribute to the Company’s free cash flow growth trajectory.”
