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Chevron (CVX) Transforms GoM Production With Anchor Start-Up
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Chevron Corporation’s (CVX - Free Report) recent achievement of first oil from the Anchor facility in the Gulf of Mexico (GoM) represents a significant milestone in deepwater oil production. The Anchor project, now operational, is notable for its technological advancement, utilizing industry-first high-pressure technology capable of withstanding up to 20,000 psi. This cutting-edge technology allows Chevron to access reservoirs located nearly 35,000 feet below the ocean’s surface — an area previously deemed too challenging due to the extreme pressure and temperature conditions.
Key Facts, Strategic Importance of the Project
Situated some 140 miles off the coast of Louisiana in the Green Canyon area, the Anchor project includes a semi-submersible floating production unit (“FPU”) with a daily production capacity of 75,000 barrels of oil and 28 million cubic feet of natural gas. The development will consist of seven subsea wells tied into the FPU, and it is projected to produce for up to 30 years. With an estimated 440 million barrels of oil equivalent in recoverable resources, Anchor is poised to significantly contribute to Chevron's production goals, aiming to double its output from the GoM to 300,000 barrels of oil equivalent per day by 2026.
Anchor Shows CVX’s Technological Prowess
Chevron's innovative approach involved overcoming substantial technical and regulatory challenges, reflecting its commitment to advancing deepwater exploration capabilities. The Anchor project showcases the oil giant’s ability to execute complex projects within budget and ahead of schedule, highlighting the Zacks Rank #3 (Hold) company’s strategic focus on expanding its GoM operations.
In parallel, British energy major BP plc (BP - Free Report) sanctioned a comparable deepwater project in the GoM last month. This project, also leveraging advanced subsea technology, is expected to commence production in 2029 and underscores the growing industry interest in high-pressure deepwater developments. BP's initiative in the Kaskida field follows a similar path but will rely on further advancements in 20,000-psi technology.
About Chevron
Chevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. The only energy component of the Dow Jones Industrial Average, San Ramon, CA-based Chevron is fully integrated, meaning it participates in every aspect related to energy – from oil production to refining and marketing. The company generates more than $200 billion in annual revenues and produces over three million barrels per day of oil equivalent.
Chevron has got 63% operating interest in the Anchor project, with French oil biggie TotalEnergies (TTE - Free Report) holding the remaining 37%.
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Chevron (CVX) Transforms GoM Production With Anchor Start-Up
Chevron Corporation’s (CVX - Free Report) recent achievement of first oil from the Anchor facility in the Gulf of Mexico (GoM) represents a significant milestone in deepwater oil production. The Anchor project, now operational, is notable for its technological advancement, utilizing industry-first high-pressure technology capable of withstanding up to 20,000 psi. This cutting-edge technology allows Chevron to access reservoirs located nearly 35,000 feet below the ocean’s surface — an area previously deemed too challenging due to the extreme pressure and temperature conditions.
Key Facts, Strategic Importance of the Project
Situated some 140 miles off the coast of Louisiana in the Green Canyon area, the Anchor project includes a semi-submersible floating production unit (“FPU”) with a daily production capacity of 75,000 barrels of oil and 28 million cubic feet of natural gas. The development will consist of seven subsea wells tied into the FPU, and it is projected to produce for up to 30 years. With an estimated 440 million barrels of oil equivalent in recoverable resources, Anchor is poised to significantly contribute to Chevron's production goals, aiming to double its output from the GoM to 300,000 barrels of oil equivalent per day by 2026.
Anchor Shows CVX’s Technological Prowess
Chevron's innovative approach involved overcoming substantial technical and regulatory challenges, reflecting its commitment to advancing deepwater exploration capabilities. The Anchor project showcases the oil giant’s ability to execute complex projects within budget and ahead of schedule, highlighting the Zacks Rank #3 (Hold) company’s strategic focus on expanding its GoM operations.
You can see the complete list of today’s Zacks #1 Rank stocks here.
GoM in the Spotlight
In parallel, British energy major BP plc (BP - Free Report) sanctioned a comparable deepwater project in the GoM last month. This project, also leveraging advanced subsea technology, is expected to commence production in 2029 and underscores the growing industry interest in high-pressure deepwater developments. BP's initiative in the Kaskida field follows a similar path but will rely on further advancements in 20,000-psi technology.
About Chevron
Chevron is one of the largest publicly traded oil and gas companies in the world, with operations that span almost every corner of the globe. The only energy component of the Dow Jones Industrial Average, San Ramon, CA-based Chevron is fully integrated, meaning it participates in every aspect related to energy – from oil production to refining and marketing. The company generates more than $200 billion in annual revenues and produces over three million barrels per day of oil equivalent.
Chevron has got 63% operating interest in the Anchor project, with French oil biggie TotalEnergies (TTE - Free Report) holding the remaining 37%.