SAN RAMON, Calif., December 16, 2010 – Chevron Corporation (NYSE:CVX) today announced it has sanctioned development of its $4 billion Big Foot project in the deepwater U.S. Gulf of Mexico.
“Sanctioning Big Foot underscores our commitment to the Gulf of Mexico and will contribute to future U.S. energy supply,” said George Kirkland, vice chairman, Chevron Corporation. “This project is another example of Chevron’s disciplined approach to advancing our enviable queue of major capital projects.”
Big Foot will be Chevron’s sixth operated facility in the deepwater Gulf of Mexico and located approximately 225 miles (360 km) south of New Orleans, Louisiana, in water depths of 5,200 feet (1,600 m). The development will utilize a dry tree Extended Tension Leg Platform with an on-board drilling rig and have production capacity of 75,000 barrels of oil and 25 million cubic feet of natural gas per day. First oil is anticipated in 2014.
“We have industry leading expertise in developing deepwater projects of this type and have repeatedly proven that we can do so safely,” said Gary Luquette, president, Chevron North America Exploration and Production Company.
Discovered in 2006, the Big Foot field lies in the Walker Ridge Area and is estimated to contain total recoverable resources in excess of 200 million oil-equivalent barrels. Primary pay sands are Middle to Upper Miocene ranging from 19,000 to 24,000 feet (5,800 to 7,300 m) and lie below a salt canopy ranging from 8,000 to 15,000 feet (2,400 to 4,500 m) thick. Three exploration and appraisal wells with multiple sidetracks have been drilled safely and successfully in the field to define the Big Foot structure. Chevron, through its subsidiary Chevron U.S.A. Inc., has a 60 percent working interest in the Big Foot project.
Chevron is one of the top leaseholders in the Gulf of Mexico, averaging net daily production of 149,000 barrels of crude oil, 484 million cubic feet of natural gas and 14,000 barrels of natural gas liquids during 2009.