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Chevron sanctions $4B Big Foot oil and gas development in deepwater US Gulf of Mexico

December 16, 2010

By Phaedra Friend Troy

In a strong vote of confidence for the future of the oil and gas industry in the US Gulf of Mexico, super major Chevron (NYSE:CVX) has sanctioned the $4 billion development of the Big Foot project in the deepwaters of the US Gulf of Mexico.

"Sanctioning Big Foot underscores our commitment to the Gulf of Mexico and will contribute to future US energy supply," said George Kirkland, vice chairman, Chevron.

Expected to come on stream in 2014, the Big Foot development will include a dry tree extended Tension Leg Platform (TLP) with an on-board drilling rig and 15 well slots. The floating production facility will have a daily capacity of 75,000 barrels of oil and 25 million cubic feet of natural gas.

"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.

Big Foot

Located on Walker Ridge 29 about 225 miles (360 kilometers) south of New Orleans in 5,200 feet (1,600 meters) of water, Big Foot will be Chevron’s sixth operated facility in deepwater Gulf of Mexico.

Discovered in 2006, Big Foot is estimated to hold some 200 million oil-equivalent barrels in total recoverable resources. The primary pay sand is located in the Middle to Upper Miocene, below a salt canopy that measures from 8,000 to 15,000 feet (2,400 to 4,500 meters) thick.

Chevron serves as the operator of the project with 60 percent interest. Project partners include Statoil with 27.5 percent and Marubeni with the remaining interest.

http://www.pennenergy.com/index/petroleum/display/9814724963/articles/pennenergy/petroleum/offshore/2010/12/chevron-sanctions.html