Chevron Corporation (CVX - Free Report) recently announced a waterflood project, aiming to increase production at its St. Malo field in the Gulf of Mexico. The field is situated nearly 280 miles to the South of New Orleans, LA and has a possible production life of 30 years remaining.
With this project, California-based Chevron will substantially ramp up the output and boost recovery. The company will further enhance its strategy to maximize the resource potential in the Gulf of Mexico.
Through this project, Chevron — a leading producer in the Gulf of Mexico — is working on its first waterflood development in the deepwater Wilcox trend. During the 30-year span, the St. Malo development is expected to produce in excess of 500 million barrels of oil equivalent (boe) inclusive of above 175 million barrels from this waterflood venture.
The fourth phase of the St. Malo development comprises two new production wells, three new injector wells and topsides injection equipment to pump out more oil while helping the company stretch the field’s lifespan.
Chevron holds a 50.1 % controlling stake in the St. Malo field while Norway-based Equinor (EQNR - Free Report) owns 21.5 %, Murphy Oil (MUR - Free Report) 20 % and Brazil's Petrobras has a 5% interest. Further, Exxon Mobil (XOM - Free Report) and Italy's Eni hold 1.25 % each.
Chevron is one of the largest publicly traded oil and gas companies in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.
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