The Jack/St. Malo project is one of five major offshore fields for Statoil and the first ultra deepwater pipeline in the Walker Ridge area, according to the official press release. The Jack and St. Malo oil and natural gas fields are about 25 miles apart and located within about 7,000 feet of water, about 280 miles off the shore of Louisiana.
Statoil has a 25 percent working interest in the Jack field and a 21.5 percent working interest in the St. Malo field. Chevron and Maersk also own interests in the Jack field, and Chevron, Petrobras, ExxonMobil and Eni own interests in the St. Malo field, the release stated.
History of the areas
The Jack field was discovered in July 2004 and the St. Malo field was found in October 2003, according to Offshore Technology. Together the fields cover an area greater than 300 miles, and researchers estimate they contain 30 to 40 years worth of oil and natural gas resources, including more than 500 million barrels of oil equivalent.
Historically, the Gulf of Mexico is a key region for oil and natural gas resources in the U.S. Offshore production in the gulf accounts for 17 percent of total U.S. crude oil production, according to the U.S. Energy Information Administration. More than 45 percent of U.S. petroleum refining capacity is located along the Gulf Coast, as well as 51 percent of total U.S. natural gas processing capacity.
Production from this region will increase the company's oil output from the gulf four-fold to more than 100,000 barrels of oil equivalent per day by 2020, the release stated. Oil will be transported to the Green Canyon 19 Platform through the Jack/St. Malo oil export pipeline. From the platform, oil will move to refineries located on the Gulf Coast.
"We are very pleased to see production begin of these high-value barrels at Jack/St. Malo," said Jason Nye, Statoil U.S. offshore senior vice president, according to the release. "This large, complex project was delivered on time and on budget - which is world-class execution."
Statoil's other four offshore projects will begin production over the next few years.