Chevron takes FID to develop Anchor oil field in Gulf of Mexico

Oil major Chevron has sanctioned the Anchor project located in the deepwater of the U.S. Gulf of Mexico. 

Chevron is the operator of the Anchor discovery with a 62.86% interest and Total is its partner with a working interest of 37.14%.

The final investment decision (FID) to develop the Anchor oil field was first announced by Total in a statement on Thursday.

Additionally, Total informed that the front-end engineering and design (FEED) had begun for its North Platte discovery. Both projects are located in the deepwater U.S. Gulf of Mexico, off the coast of Louisiana.

The Anchor field is located in the Green Canyon area, approximately 140 miles (225 km) off the coast of Louisiana, in water depths of approximately 5,000 feet. It will be developed with seven subsea wells connected to a semi-submersible floating production unit (FPU) with a capacity of 75,000 barrels of crude oil and 28 million cubic feet of gas per day. First oil is expected in 2024.

In a separate statement on Thursday, Chevron said that the FID for the Anchor project marked the industry’s first deepwater high-pressure development to achieve the FID. Delivery of the new technology, which is capable of handling pressures of 20,000 psi, also enables access to other high-pressure resource opportunities across the Gulf of Mexico for Chevron and the industry, the company added.

Chevron also said that the initial development of the project would require an investment of approximately $5.7 billion. The total potentially recoverable oil-equivalent resources for Anchor are estimated to exceed 440 million barrels.

Total also holds interests with Chevron in other leases in the vicinity of Anchor with exploration potential. Any discoveries on those jointly owned leases could be tied back to the Anchor facilities at competitive costs.

North Platte discovery

The North Platte field straddles four blocks of the Garden Banks area, 275 kilometers off the coast of Louisiana in approximately 1,300 meters of water. The reservoir is of high quality, both in porosity and permeability, with thickness in places exceeding 1,200 meters.

Like Anchor, North Platte requires the use of 20 kpsi technologies. Total said that the field development plan was based on eight subsea wells and two subsea drilling bases connected via two production loops to a newbuild, lightweight floating production unit (FPU). Production will be exported through existing oil and gas subsea networks.

Total operates North Platte with a 60% working interest, alongside Equinor (40%). Oil production at plateau level is expected to average 75,000 barrels per day. Output will include associated gas. Total also holds interests in high-potential exploration acreage in the Greater North Platte Area, and the FPU design provides for a possible future tie-in.

Arnaud Breuillac, President, Exploration & Production at Total, said: “The FID for Anchor and the decision to launch FEED for North Platte are tangible examples of our strategy to increase our footprint in the deepwater Gulf of Mexico. The Anchor project benefits from reserves with upsides, allowing for a stand-alone development at a competitive cost. The North Platte project, meanwhile, marks Total’s return to the region as an operator. We’re aiming for a final investment decision in 2021.”

He added: “These two high-pressure, 20 kpsi projects will help to unlock the potential of the Central Area of the Gulf of Mexico, where Total has a strong presence.”