Anadarko Petroleum Corporation and co-owners Shell and Chevron have announced the first oil production at the Caesar/Tonga development in the Gulf of Mexico.

Production from Caesar Tonga, with an estimated resource base of 200 to 400 million barrels of oil equivalent (BOE), is expected to ramp up to about 45,000 BOE a day from the first three wells.

A fourth development well is expected to be drilled and completed later this year as part of the planned Phase I development.

Jason Nye, Statoil senior vice president US offshore development and production North America, said: "Caesar Tonga fits well with our strategy to significantly grow Gulf of Mexico production over the next several years.

"And it’s a great example of using existing infrastructure in the deep-water Gulf to achieve cost savings. The project teams worked well together on this."

Caesar Tonga is developed as a subsea tieback to Anadarko Petroleum’s Constitution spar floating production facility.

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By GlobalData

The development also includes the first application of steel lazy wave riser technology in the Gulf of Mexico.

Anadarko holds a 33.75% working interest in the Caesar/Tonga development, while Statoil holds 23.55% and Shell Offshore has a 22.45% stake.