SAN RAMON, Calif., March 11, 2010 – Chevron U.S.A. Inc., a wholly owned subsidiary of Chevron Corporation (NYSE: CVX), today announced that it has commenced operations on the Discoverer Inspiration, an ultra-deepwater drillship, in the U.S. Gulf of Mexico. The vessel has the capability to drill wells in 12,000 feet (3,650 meters) of water to a total depth of 40,000 feet (12,200 meters).
The state-of-the-art vessel is the second such vessel commissioned by Chevron in the last six months. Last August, Inspiration's sister ship, Discoverer Clear Leader, began work for Chevron in the ultra-deep water Gulf of Mexico.
"Both these newly built vessels were designed to Chevron's specifications and will work on a strong queue of deepwater opportunities," said George Kirkland, vice chairman, Chevron. "Going beyond the limits of previous technology, Inspiration and Clear Leader provide Chevron with the most advanced offshore drilling capabilities as we explore for new sources of energy in the U.S. and globally."
The Inspiration will begin work for Chevron drilling deepwater Gulf of Mexico exploration prospects and then develop existing discoveries such as Jack, St. Malo and Buckskin. Chevron will operate Inspiration under a five-year contract with Transocean. Chevron is one of the top lease holders and producers in the Gulf.
The new drillship's upgrades not only improve safety, reliability and efficiency, but also extend overall deepwater drilling and completion capabilities. Enhancements include an upgraded top-drive system, an expanded high-pressure mud-pump system and expanded completions capabilities. These enhancements, along with Transocean's patented dual-activity technology, allow parallel operations from a single derrick. These innovations are expected to reduce drilling costs by 5 to 15 percent over conventional single-activity rigs, depending on reservoir depth and complexity.
Chevron is widely recognized as a leader in deepwater drilling. The company holds the current world record for drilling water-depth at 10,011 feet (3,051 meters).
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; 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.