Chevron Makes Deepwater Oil Discovery in Gulf of Mexico

Wednesday March 27, 2013

Chevron Corporation [NYSE:CVX] (Chevron) says it has made a new oil discovery in the U.S. Gulf of Mexico.

The company says a well drilled about 190 miles off the Louisiana coast at the Coronado prospect found oil.

"The Coronado discovery continues our string of exploration successes in the Lower Tertiary Trend, where Chevron is advancing multiple projects," said Gary Luquette, president of Chevron North America Exploration and Production Company.

"It also highlights the importance of the deepwater Gulf of Mexico as a source of domestic energy for the United States."

The results of the well, which is 6,127 feet underwater and was drilled to a depth of 31,866 feet, are still being evaluated.

Chevron owns a 40 percent interest in the prospect and operates the well, while ConocoPhillips [NYSE:COP] owns 35 percent, Anadarko Petroleum Corporation [NYSE:APC] controls 15 percent, and Venari Offshore LLC has a 10 percent share.

Chevron is also constructing two other Gulf of Mexico projects that are scheduled to start production in 2014 and is appraising two more discoveries at the Lower Tertiary Trend.

Chevron is working to boost its worldwide daily production of oil and gas from 2.7 million barrels in the fourth quarter of 2012 to 3.3 million in 2017 with various projects including the "ultradeep" oil wells in the Gulf of Mexico, according to a report in trade publication World Oil.