Chevron Approves Expanded Deepwater Pipeline for Tahiti
Pipeline also will serve future U.S. Gulf of Mexico deepwater projects
HOUSTON, May 16, 2006 -- Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX) today announced that it has approved the construction of a 55-mile deepwater crude oil pipeline that will connect the Chevron-operated Tahiti project to the existing Amberjack pipeline in the U.S. Gulf of Mexico. Chevron also approved expanding the pipeline from a 20-inch diameter to a 24-inch diameter design that can handle 300,000 barrels of oil per day and accommodate additional discoveries in the Walker Ridge and Green Canyon areas. Chevron expects to invest a total of $3.3 billion this year in U.S. exploration, development and production projects.
"The Tahiti pipeline positions Chevron for near- and long-term sustained production growth in the deepwater Gulf of Mexico. Chevron has had great success in deepwater exploration, and this project is another milestone in Chevron's commitment to develop and deliver new crude oil and natural gas production," said Gary Luquette, president of Chevron North America Exploration and Production Company. "The pipeline will serve Chevron's $3.5 billion Tahiti project and may also facilitate the development of other current and future discoveries."
The 55-mile pipeline will be built by Amberjack Pipeline Company LLC and owned equally by Chevron Pipe Line Company and Shell Pipe Line Company LP. The pipeline will be located in 4,200 feet of water in Green Canyon block 641 and will connect the Tahiti platform, currently under construction, and the existing Amberjack pipeline system and other existing crude oil pipeline infrastructure in Green Canyon Block 19. The Tahiti project is expected to begin production in 2008 and to have a maximum daily production of 125,000 barrels of crude oil and 70 million cubic feet of natural gas.
Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on 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 deepwater pipeline project in the U.S. Gulf of Mexico and the future production potential of the Tahiti project. Words such as "expected," "planned" 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 the demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; inability or failure of the company's joint-venture partners to fund their share of project expenditures; 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.
Updated: May 2006