Chevron has sanctioned a waterflood project in the St. Malo field in the Gulf of Mexico to boost its recovery.
In an announcement issued last week, Chevron says the decision is part of the company’s strategy to maximize its existing resources in Gulf of Mexico. The St. Malo field is located approximately 280 miles south of New Orleans and has an estimated remaining production life of 30 years.
“The St. Malo field is a world-class asset that is positioned for highly economic brownfield development,” Chevron North America Exploration and Production president Steve Green said in a statement.
The waterflood project is Chevron’s first in the deepwater Wilcox trend and is expected to deliver an estimated ultimate recovery of more than 175 million barrels of oil equivalent. It will include two new production wells, three new injector wells and topsides injection equipment for the Jack/St. Malo floating production unit, allowing Chevron to extend the life of the field.
Chevron, through its subsidiaries, Chevron U.S.A. Inc. and Union Oil Company of California, holds a 51% working interest in the St. Malo field, with co-owners MP Gulf of Mexico LLC (25%) (owned by Murphy Oil Corporation 80% and Petrobras America Inc. 20%), Equinor Gulf of Mexico LLC (21.5%), Exxon Mobil Corporation (1.25%) and Eni Petroleum US LLC (1.25%).