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SAN RAMON, Calif., October 21, 2010 – Chevron Corporation (NYSE:CVX) today announced it has sanctioned development of the Jack/St. Malo project, its first operated project located in the Lower Tertiary trend in the deepwater U.S. Gulf of Mexico.

"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."

The Jack and St. Malo fields are located within 25 miles (40 km) of each other approximately 280 miles (450 km) south of New Orleans, Louisiana, in water depths of 7,000 feet (2,100 m). The initial development of the project will require an investment of approximately $7.5 billion. It will be comprised of three subsea centers tied back to a hub production facility with a capacity of 170,000 barrels of oil and 42.5 million cubic feet of natural gas per day. Startup is anticipated in 2014.

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"The Jack/St. Malo project builds off our success in the U.S. Gulf of Mexico and will enable Chevron to help meet future U.S. energy demand while delivering a safe and reliable deepwater operation," said Gary Luquette, president, Chevron North America Exploration and Production Company. "Today's announcement is another step in our efforts in the development of the Lower Tertiary trend. 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." 

The Jack and St. Malo fields are estimated to contain combined total recoverable resources in excess of 500 million oil-equivalent barrels. Seven exploration and appraisal wells have been successfully and safely drilled at these fields since 2003. Chevron, through its subsidiary Chevron U.S.A. Inc., has working interests of 50 percent in the Jack field, 51 percent in the St. Malo field, and 50.67 percent in the host facility.

Chevron is one of the top leaseholders in the Gulf of Mexico, averaging net daily production of 149,000 barrels of crude oil, 484 million cubic feet of natural gas and 14,000 barrels of natural gas liquids during 2009.

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 bio-fuels. 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," "schedules," "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; the inability or failure of the company's joint-venture partners to fund their share of operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development, construction or start-up of planned projects; 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.


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