Chevron sanctions Stampede project in deepwater Gulf of Mexico

Chevron sanctions Stampede project in deepwater Gulf of Mexico

SAN RAMON, California -- Chevron has announced that its subsidiary, Union Oil Company of California, has reached a final investment decision to proceed with the development of the Hess Corporation-operated Stampede project in the deepwater U.S. Gulf of Mexico.

The project design capacity will be 80,000 bpd. Total estimated recoverable resources for Stampede are estimated in excess of 300 MMboe. The drilling program includes a total of six production and four water injection wells. The development is estimated to cost approximately $6 billion.

Drilling is planned to commence in the fourth quarter of 2015, with first production expected in 2018.

The Stampede project includes the joint development of the Knotty Head and the Pony discoveries, in Green Canyon blocks 511, 512, and 468. The blocks are located 220 miles southeast of New Orleans, LA, in 3,500 ft of water, and target lower Miocene reservoirs at a depth of approximately 30,000 ft. The Knotty Head field was discovered in 2005 and the Pony field was discovered in 2006.

Chevron's subsidiary has a 25% working interest in the development. Other co-owners include, Hess Corporation (operator and 25% interest), Statoil (25%) and Nexen (25%).