Chevron Confirms First Oil from Perdido Development
World's Deepest Offshore Production Facility Marks Milestone in the Deepwater U.S. Gulf of Mexico SAN RAMON, Calif., Mar. 31, 2010 - Chevron Corporation (NYSE: CVX) announced today that the Perdido deepwater project, located in the U.S. Gulf of Mexico, has started crude oil and natural gas production. Production from the Great White, Silvertip and Tobago fields utilizing the Perdido hub is expected to reach full capacity of 130,000 barrels of oil-equivalent per day after the drilling of additional wells.
"Achieving first oil at the Perdido development adds to an impressive list of major capital projects for Chevron in the deepwater," said George Kirkland, vice chairman, Chevron Corporation. "Perdido follows the recent start-up of two large deepwater projects, Tahiti and Blind Faith, and demonstrates the importance of the Gulf of Mexico for Chevron."
"Perdido represents the industry's first production from the Lower Tertiary, where Chevron has made multiple discoveries and is a leading leaseholder. This project's success paves the way to develop further opportunities in this important new area," said Gary Luquette, president, Chevron North America Exploration and Production Company.
Chevron is at the forefront of efforts to develop crude oil and natural gas from the Lower Tertiary. Perdido follows the recent start-up of two large deepwater projects, Tahiti and Blind Faith.
Tethered in nearly 8,000 feet of water, Perdido is the world's deepest offshore oil and gas drilling and production spar and is 60 miles beyond any existing developments in the Gulf. Several new technologies were specifically developed for Perdido, including a means to separate crude oil and natural gas at the sea floor rather than on the platform. Chevron is at the forefront of efforts to develop crude oil and natural gas from the Lower Tertiary. Chevron began front-end engineering and design for the Jack and St. Malo fields last year and expects to sanction the project this year. The company also plans to further evaluate its Buckskin discovery in the Lower Tertiary through appraisal drilling activities in 2010.
Chevron has a 37.5 percent working interest in the Perdido regional host facilities and holds interests in the development's three producing fields: Great White (33.3 percent), Silver Tip (60 percent) and Tobago (57.5 percent). The Great White field is expected to produce approximately 80 percent of Perdido's total production. The production platform is located in Alaminos Canyon Block 857, approximately 250 miles south of Houston.
Chevron is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in the U.S. Gulf of Mexico. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates," "budgets" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in prices of, demand for and supply of crude oil and natural gas; actions of competitors; timely completion of the development of fields; the potential disruption or interruption of production and development activities due to war, accidents, political events, civil unrest, or severe weather; government-mandated sales, divestitures, recapitalizations and changes in fiscal terms or restrictions on scope of company operations; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.