Confidence Vote: Chevron sanctions ultra-deepwater Jack-St. Malo development in the US GOM

Despite the drilling moratorium, despite the permitting delays, despite all the problems that we're experiencing in getting our offshore oil and gas professionals back to work -- Chevron delivered a major vote of confidence for offshore oil and gas in the US Gulf of Mexico.

Today, US super-major Chevron (NYSE:CVX) sanctioned the $7.5 billion development of its Jack-St. Malo ultra-deepwater fields in the Lower Tertiary. A major project moving forward for the US GOM, the integrated development will include three subsea centers tied to a massive semisubmersible production hub with the capacity to production 170,000 barrels of oil and 42.5 million cubic feet of natural gas a day.

Already, Mustang has been contracted to provide FEED and then detailed design of the topsides for the development. Also, Cameron won a $230 million contract to provide subsea equipment for the development.

There are billions of dollars of contracts yet to be awarded.

The oil and gas community is confident that it can move forward with deepwater offshore operations safely. Thank you, Chevron -- and partners. Thank you for believing in the US Gulf of Mexico, and thank you for bringing sorely needed jobs back to the Gulf Coast.

Hopefully, this development will help to encourage others to commit to the US GOM and move forward with more drilling, developments and contracts.

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