Chevron

The Arab world’s most populous country has awarded a string of concessions in a bid to become the region’s next major supplier of natural gas.

The Anchor development in the US Gulf of Mexico is the first ultra-high-pressure project requiring 20-ksi operating pressure to reach a final investment decision.

The US major will keep its overall budget flat for a third straight year, but the expectation of lower oil and gas prices long-term will result in tax impairment charges of $10 billion–$11 billion. More than half of those charges will come from its Appalachia Shale gas assets.

The deal, first announced in May, gives the Delek subsidiary 10 additional producing field interests in the UK North Sea, boosting its 2019 production by 300%.

The funding from Chevron Technology Ventures and Energy Innovation Capital will help scale Ingu’s data collection platform and analysis for its Pipers technology, a pipeline screening tool launched last year.

The US major has had a stake in the field since it started production in 1997. It produced 584,000 B/D of oil last year.

Chevron has seen great results from its implementation of learning teams, says Dave Payne, the company’s vice president of health, environment, and safety.

The round included a near-$1 billion signature bonus on a Campos Basin block awarded to a Total-led consortium.

The energy major said it plans to reduce emission intensity by 5–10% for upstream oil production and by 2–5% for upstream gas.

The project aims to contribute an estimated ultimate recovery of more than 175 MMboe from one of the company’s signature deepwater projects in the US Gulf of Mexico.