The Anchor oil field, which is estimated to contain more than 440 million barrels of recoverable oil-equivalent resources, is expected to begin production in 2024


Chevron and Total to move ahead with development of Anchor oil field. Photo: courtesy of C Morrison from Pixabay.

Chevron and Total have taken final investment decision (FID) on the Anchor oil field development in the deepwater US Gulf of Mexico (US GoM), which involves an investment of around $5.7bn for its first stage.

The Anchor oil project is being pursued in the Green Canyon region, nearly 225km offshore Louisiana, to exploit more than 440 million barrels of estimated recoverable oil-equivalent resources.

Contained in water depths of nearly 1,524m, the Anchor field is likely to be developed in multiple stages. The offshore oil field is expected to begin production in 2024.

Stage 1 development of Anchor oil field

Stage 1 of the Anchor project will involve drilling of seven subsea wells that will be connected to a semi-submersible floating production unit (FPU). According to the partners, the Anchor project FPU will have a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day.

The Anchor oil project is said to be the first development in the industry to use high-pressure technology. Chevron said that the new technology, which can handle pressures of 20,000 psi, also gives access to other high-pressure resource opportunities across the Gulf of Mexico.

Chevron North America exploration and production president Steve Green said: “For new projects in the Gulf of Mexico, we have reduced development costs by nearly a third, compared to our last generation of greenfield deepwater investments.

“We’re doing this by standardizing equipment, utilizing fit-for-purpose surface facilities that require less capital and employing drill to fill strategies. At Anchor, we streamlined our front-end engineering and design phase and are utilizing more industry standards in our designs and equipment to lower costs while maintaining Operational Excellence.”

Chevron is the operator of the Anchor oil field, through a 62.86% stake held by its subsidiary Chevron U.S.A. Total holds the remaining 37.14% stake through its subsidiary TOTAL E&P USA.

Total said that it also holds stakes alongside Chevron in other leases located near the Anchor project that have exploration potential. The French oil and gas company said that any discoveries on the jointly owned leases can be tied back to the facilities at the Anchor field at competitive costs.

In another development, Total launched front-end engineering and design (FEED) for the North Platte discovery, which is also located in deepwater Gulf of Mexico, offshore Louisiana.

The French oil and gas firm, which expects to take an FID for the North Platte development, is the operator with a 60% stake. Total is partnered by Equinor (40%) in the Gulf of Mexico deepwater project.

Total exploration and production president Arnaud Breuillac 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.”