Chevron Tahiti Project Delayed for Remanufacture of Mooring Shackles
SAN RAMON, Calif., June 28, 2007 -- Chevron Corporation (NYSE: CVX) today announced its $3.5 billion Tahiti project in the Gulf of Mexico will face delays because of metallurgical problems discovered in the facility's mooring shackles. Initial quality control testing of the existing shackles did not identify a problem. Additional testing was ordered after Chevron's contractor discovered a metallurgical problem with shackles on a similar installation for another company. Metallurgical problems were subsequently discovered in the Tahiti shackles as well.
To ensure the facility's safety and reliability, Chevron has begun the process to order new shackles and plan their installation. Steel shackles are used to connect various components of a mooring line together. Mooring lines connect the spar to anchors (pilings) on the sea floor. The shackles are not part of the spar hull, so this issue does not impact the spar's integrity.
Tahiti is an energy project located in the deepwater Gulf of Mexico, about 140 miles offshore and 190 miles south of New Orleans. It was scheduled for completion in mid-2008. Major components of the project are nearing completion and work on their installation is expected to continue once timing for new shackles is determined.
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 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. 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.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are the ability of the company to secure replacement parts at commercially reasonable prices in a timely manner, the ability of the company's contractor to install such parts in the time frame required by the company, potential disruption or interruption of the project due to accidents or severe weather and the factors set forth under the heading "Risk Factors" on pages 31 and 32 of the company's 2006 Annual Report on Form 10-K
Updated: June 2007