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January 28, 2015

Chevron, BP and ConocoPhillips to explore 24 jointly-held offshore Gulf of Mexico leases

Chevron USA has agreed to work with BP Exploration and Production (BP) and ConocoPhillips to explore and appraise 24 jointly-held offshore leases in the deepwater Gulf of Mexico.

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Chevron USA has agreed to work with BP Exploration and Production (BP) and ConocoPhillips to explore and appraise 24 jointly-held offshore leases in the deepwater Gulf of Mexico.

Chevron will operate the leases for the Tiber and Gila fields, as well as the Gibson exploration blocks, east of Gila, in the north-west area of Keathley Canyon.

BP has agreed to sell about half of its equity interests in Gila and Tiber to Chevron.

The Tiber field was discovered in 2009, followed by the Gila field in 2013.

In October 2014, BP participated as a co-owner in the Chevron-operated Guadalupe discovery.

The three companies will also evaluate the potential of a centralised production facility, which is expected to offer enhanced capital efficiency, similar to Chevron’s Jack/St. Malo project.

"We will work with our co-owners to evaluate how to develop these leases, along with our recently announced discovery at Guadalupe."

Chevron senior vice-president for upstream Jay Johnson said: "We will work with our co-owners to evaluate how to develop these leases, along with our recently announced discovery at Guadalupe."

The company expects to develop the recently-unveiled discovery at Guadalupe, situated adjacent to Keathley Canyon, using the centralised production facility.

Chevron, BP, and Venari, the Guadalupe co-owners, will assess the options in the upcoming appraisal phase of the discovery.

Commenting on its partnership with Chevron and ConocoPhillips, BP said combining the technical strengths and financial resources of the three companies will offer better efficiency through scale, reduce subsurface risk and increase the likelihood of achieving a future commercial development.

In the last five years, BP has invested around $50bn in US operations.


Image: Chevron, BP and ConocoPhillips will work cooperatively to explore and appraise 24 Gulf of Mexico leases. Photo: courtesy of Chevron Corporation.

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