WATCH: All-electric FPU drops Anchor in Gulf of Mexico as ‘industry’s first’ deepwater 20K tech enables oil & gas flows from game-changing project

Two oil majors, America’s Chevron and France’s TotalEnergies, have pooled resources to dive deeper into the subsea reservoir depths to unlock more untapped hydrocarbon resources from the U.S. Gulf of Mexico with 20,000 psi (20K) technology, bringing oil and natural gas from one of the industry’s first ultra-high pressure projects to the market and paving the way for the development of future ultra-high pressure, high-temperature discoveries around the world.

Chevron’s Anchor project is perceived to be the industry’s first high-pressure deepwater development to reach a final investment decision (FID) in 2019 and one of the largest projects in the U.S. energy industry’s history. Located approximately 225 km off the coast of Louisiana, United States, in more than 1,500 m of water, the field is situated in Block 807 of the Green Canyon Protraction Area in the deepwater U.S. Gulf of Mexico.

The first oil and natural gas production from the Anchor project, said to represent a milestone in delivering high-pressure technology rated to safely operate at up to 20,000 psi with reservoir depths reaching 34,000 feet below sea level, began flowing on August 12. Chevron claims that this “first of its kind, powered by innovation” project is helping to bring forth more energy from the Gulf of Mexico, which the U.S.-based player sees as home to some of the world’s lowest carbon intensity oil and gas.

Nigel Hearne, Executive Vice President at Chevron Oil, Products & Gas, highlighted: “The Anchor project represents a breakthrough for the energy industry. Application of this industry-first deepwater technology allows us to unlock previously difficult-to-access resources and will enable similar deepwater high-pressure developments for the industry.”

Designed to consist of a system of subsea wells connected to a semi-submersible floating production unit (FPU) with a production capacity of 75,000 barrels of oil per day and 28 million cubic feet of gas per day, Anchor is expected to entail seven subsea wells tied into the Anchor FPU. The potentially recoverable resources from the Anchor field are estimated to be up to 440 million barrels of oil equivalent.

Bruce Niemeyer, President at Chevron Americas Exploration & Production, emphasized: “This Anchor milestone demonstrates Chevron’s ability to safely deliver projects within budget in the Gulf of Mexico. The Anchor project provides affordable, reliable, lower carbon intensity oil and natural gas to help meet energy demand, while boosting economic activity for Gulf Coast communities.”

To this end, the Anchor FPU, which is Chevron’s sixth operated facility currently producing in the U.S. Gulf of Mexico, has been designed to minimize greenhouse gas (GHG) emissions through an all-electric configuration, with electric motors and electronic controls, and the utilization of waste heat and vapor recovery technologies.

With a production life of up to 30 years, the 25-story high FPU will utilize existing pipeline infrastructure to transport oil and natural gas directly to U.S. Gulf Coast markets. While Chevron, through its subsidiary Chevron U.S.A., is the operator and holds a 62.86% working interest in the Anchor project, TotalEnergies is a co-owner with a 37.14% working interest.

Nicolas Terraz, President, Exploration & Production at TotalEnergies, underscored: “The start-up of Anchor is a new milestone in the deployment of TotalEnergies’ integrated energy model in the US, combining the development of oil projects with a high leverage to price and a low emissions intensity and growth in Integrated LNG and Integrated Power. Delivered safely, on time and within budget, this project will contribute to the company’s free cash flow growth trajectory.”

In addition to Anchor, Chevron’s operated deepwater platforms in the region include Jack/St. Malo, Big Foot, Tahiti, Blind Faith, and Petronius. Anchor’s high-pressure subsea technology, which is said to open up a new frontier in deepwater production, is set to assist the oil major in reaching the expected overall output of 300,000 barrels per day by 2026 in the Gulf of Mexico.

With investments of $700 million in Texas and Louisiana during facility construction and $500 million for offshore maintenance and modification during the facility’s estimated 30-year operational life along with $135 million in Louisiana for marine support vessels, Anchor is anticipated to contribute to the U.S. giant’s goal of providing affordable, reliable, ever-cleaner energy to help meet growing demand.

Chevron is actively working on stepping up its oil and gas portfolio expansion as confirmed by recent deals in Namibia and Uruguay. Hess Corporation’s shareholders recently endorsed the firm’s proposed merger with the U.S. player despite an arbitration process with its partners in the assets located in the Stabroek block off the coast of Guyana.

ExxonMobil’s arbitration process in Guyana has stalled the merger Chevron is pursuing with Hess and the issue is now anticipated to be resolved by September 2025.