Chevron Invests in New Deepwater Gulf of Mexico Project
SAN RAMON, Calif., Oct. 10, 2005 -- Chevron Corporation (NYSE: CVX) today announced that it is proceeding with the development of the Blind Faith Field in the deepwater Gulf of Mexico. The field will be developed using a semisubmersible production facility, with first production expected during the first half of 2008. Chevron is the operator and holds a 62.5 percent working interest.
Blind Faith is located in approximately 7,000 feet of water, about 160 miles southeast of New Orleans, on Mississippi Canyon blocks 695 and 696. The discovery well was drilled in June 2001 and encountered more than 200 feet of net pay in Miocene sands at depths of 20,900 feet to 24,300 feet. A successful appraisal well was drilled in 2004. The field has an estimated gross resource potential exceeding 100 million barrels of oil-equivalent.
"The project demonstrates our strong commitment to continue to invest in the Gulf of Mexico to develop new energy supplies, as well as our ability to advance significant capital projects in areas where we are well positioned for future growth," said George Kirkland, Chevron Corporation's executive vice president, Upstream and Gas.
Added Ray Wilcox, Chevron's North America Exploration and Production Company president, "Blind Faith is part of our upstream strategy to grow profitability in our core areas and build new legacy positions. This project is a key asset in our deepwater portfolio and is expected to provide significant new oil and gas resources in the Gulf of Mexico."
Total capital costs for the project will be approximately $900 million. Chevron's partner in the Blind Faith project is Kerr-McGee Corp., which holds a 37.5 percent interest.
Initial production is expected to be approximately 30,000 barrels of oil per day (b/d) and 30 million cubic feet of gas per day (mmcf/d). The semisubmersible facility will have a production capacity of approximately 45,000 b/d and 45 mmcf/d. The topsides can be upgraded to a capacity of 60,000 b/d and 150 mmcf/d to accommodate production from satellite discoveries or third-party tiebacks.
Chevron is the largest overall leaseholder in the Gulf of Mexico and 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 STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release of Chevron Corporation contains forward-looking statements relating to Chevron's operations that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this 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.
Among the factors that could cause actual results to differ materially are unknown or unexpected problems in the resumption of operations affected by Hurricanes Katrina and Rita; prices for and competitive conditions affecting supply and demand for crude oil and natural gas; refining margins and marketing margins; actions of competitors; inability or failure of the company's joint-venture partners to fund their share of operations and development activities; potential failure to achieve expected net production from existing and future oil and gas development projects; potential disruption or interruption of the company's net production or manufacturing facilities due to war, accidents, political events or severe weather; potential liability for remedial actions under existing or future environmental regulations and litigation; significant investment or product changes under existing or future environmental regulations (including, particularly, regulations and litigation dealing with gasoline composition and characteristics); and potential liability resulting from pending or future litigation. In addition, such statements could be affected by general domestic and international economic and political conditions. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.
The rules of the United States Securities and Exchange Commission (SEC) permit oil and gas companies to disclose only proved reserves in their SEC filings. Certain terms such as "probable," "possible," "potential" or "recoverable volumes," "resources," "reserves," or "crude oil in place," among others, may be used in this or certain other company communications that are not permitted to be used in filings with the SEC. U.S. investors should refer to disclosures in Chevron's Annual Report on Form 10-K for the year ended December 31, 2004.
Updated: October 2005