Chevron sanctions ultra-deepwater Jack-St. Malo project int he US Gulf of Mexico

By Phaedra Friend Troy

US major Chevron Corp. (NYSE:CVX) has sanctioned the $7.5 billion ultra-deepwater Jack-St. Malo development in the US Gulf of Mexico.

The company’s first-ever Lower Tertiary development, Jack and St. Malo fields are located in the Walker Ridge area, 280 miles south of New Orleans in waters measuring 7,000 feet deep. Estimated to contain combined total recoverable resources of more than 500 million barrels of oil equivalent, the fields are situated just 25 miles from each other, allowing for an integrated development.

"Jack/St. Malo is the latest example of Chevron advancing its industry-leading queue of major capital projects," said George Kirkland, vice chairman, Chevron Corporation. "The Lower Tertiary is recognized as a huge resource with the potential for long life projects of up to 30 to 40 years and the opportunity to enhance recoveries through technology."

Field Development

Requiring an estimated $7.5 billion, the initial Jack-St. Malo development will include three subsea centers tied to a production hub with the capacity to produce 170,000 barrels of oil and 42.5 million cubic feet of natural gas a day.

Engineering firm Mustang performed the FEED for the project in 2009 and recently was awarded the detail design for the topsides of the semisubmersible production hub planned for the unified development.

Subsea services company Cameron received a $230 million contract to supply the subsea production systems for the first stage of development on the Jack and St. Malo fields. The order includes 12 15,000-psi subsea trees, production control systems, four manifolds and associated equipment. Deliveries are scheduled from the third quarter of 2011 to the second quarter of 2013.

First production is scheduled to commence from Jack and St. Malo in 2014.

"Today's announcement is another step in our efforts in the development of the Lower Tertiary trend,” said Gary Luquette, president of Chevron North America Exploration and Production Company. “We have an operating interest in the 2009 Buckskin discovery and participate in the Perdido Regional Development, which provide significant learnings we can apply to Jack/St. Malo."

Jack-St. Malo: Ultra-Deepwater Discoveries

The St. Malo oil field was discovered by the Discoverer Spirit drillship in October 2003 on Walker Ridge Block 679 by then-operator Unocal. The discovery well transected a gross hydrocarbon column measuring 1,400 feet. Chevron serves as operator of St. Malo with 51 percent. Project partners are Petrobras, Statoil and ExxonMobil.

Jack was discovered in September 2004 on Walker Ridge Block 758, about 270 miles southwest of New Orleans and 175 miles offshore. Chevron serves as the operator of the block with 50 percent interest, and Statoil and Maersk each hold 25 percent interest.

Since 2003, seven successful wells have been drilled on the fields.

Chevron also holds 50.67 percent interest in the production hub.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs