Chevron has sanctioned a project to increase recovery in the St. Malo field, as the US based supermajor looks to maximize existing resources in the Gulf of Mexico.
The waterflood project is Chevron’s first in the deepwater Wilcox trend and is expected to contribute an estimated ultimate recovery of more than 175 million barrels of oil equivalent, the company said. It will include two new production wells, three new injector wells and topsides injection equipment for the Jack/St. Malo floating production unit, allowing the life of the field to be extended.
Located approximately 280 miles south of New Orleans, the St. Malo field has an estimated remaining production life of 30 years.
“The St. Malo field is a world-class asset that is positioned for highly economic brownfield development,” said Steve Green, President of Chevron North America Exploration and Production. “With our leading technology, experienced workforce and broad portfolio, we're delivering value in the Gulf of Mexico.”
Chevron holds a 51% working interest in the St. Malo field, with co-owners MP Gulf of Mexico (25%) (owned by Murphy Oil 80% and Petrobras 20%), Equinor (21.5%), ExxonMobil (1.25%) and Eni (1.25%).
“We are pleased to announce this decision, which will further boost our production of high-value barrels from the Gulf of Mexico,” said Chris Golden, Senior Vice President for Equinor’s North America offshore portfolio.
Equinor said in a statement that it aims to continue growing its US offshore portfolio, which currently produces more than 130,000 boe/day in total.