Production of crude oil and natural gas began for Chevron Corp.’s Jack/St. Malo project in the deepwater US Gulf of Mexico (GoM).

The fields, among the largest in the GoM, are located within 40km of each other in about 7000ft of water in the Walker Ridge area, approximately 450km south of New Orleans, Louisiana.

Crude oil from the facility will be transported approximately 140 mi. to the Green Canyon 19 platform using the Jack/St. Malo Oil Export Pipeline, and then onto refineries along the Gulf Coast. The pipeline is the first large-diameter, ultra deepwater pipeline in the Walker Ridge area of the Lower Tertiary trend.

Chevron says production from the first development stage is expected to ramp up over the next several years to a total daily rate of 94,000bbl of crude oil and 21MMcf of natural gas.

The US giant expects the production life to last more than 30 years and anticipates to recover in excess of 500MMboe. At peak production, partner Statoil expects the combined fields to reach approximately 23,000b/d of oil.

The fields were co-developed with subsea completions flowing back to a single host, semisubmersible floating production unit located between the fields. The facility, the largest of its kind in the GoM, has a production capacity of 170,000bbl of oil and 42.5MMcf/d of natural gas, with the potential for future expansion.

The project was sanctioned in 2010 and was Chevron’s first application of deepwater ocean bottom node seismic technology in the Gulf of Mexico, providing images of subsurface layers nearly 30,000ft below the ocean floor.

According to Chevron, the Jack/St. Malo project is the result of the collaboration of hundreds of suppliers and contractors and many thousands of people across nine countries over a 10-year period. It is supporting the company’s plan to reach 3.1MMb/d by 2017.

In the Jack field, Chevron, through its subsidiary, Chevron USA Inc., has a working interest of 50% with co-owners Statoil (25%) and Maersk Oil (25%).

In the St. Malo field, Chevron, through its subsidiaries, Chevron USA and Union Oil Co. of California, also holds a 51% working interest, with co-owners Petrobras (25%), Statoil (21.5%), ExxonMobil (1.25%) and Eni (1.25%).

Chevron has a 40.6% ownership interest in the semisubmersible floating unit, with co-owners Statoil (27.9%), Petrobras (15%), Maersk (5%), ExxonMobil (10.75%) and Eni (0.75%).

Source: www.oedigital.com

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