Natural gas and crude oil production at the Chevron operated Jack/St. Malo deepwater project in the U.S. Gulf of Mexico started Tuesday.
Production from the first stage is expected to reach 94,000 barrels of crude oil and 21 million cubic feet of natural gas within the next few years.
The Jack and St. Malo fields have a planned production life of 30 years and have combined estimated recoverable reserves of 500 million barrels of oil equivalent.
“The Jack/St. Malo project delivers valuable new production and supports our plan to reach 3.1 million barrels per day by 2017,” Chevron vice chairman George Kirkland said.
The fields are located within 25 miles of each other in 7,000 feet of water in the Walker Ridge area, 280 miles south of New Orleans.
The Jack/St.Malo facility is the largest of its kind in the Gulf of Mexico and has a production capacity of 170,000 barrels of oil and 42 million cubic feet of natural gas per day, with the potential for future expansion.
Chevron operates the facility and holds a 50 percent interest in the Jack field and a 51 percent interest in the St. Malo field.
Norway’s Statoil and Denmark-based Maersk Oil each hold 25 percent stakes in the Jack field.
Brazil’s Petrobras holds a 25 percent stake in the St. Malo Field. Statoil holds a 21.5 percent stake, ExxonMobil holds a 1.25 percent stake and Italy’s Eni holds a 1.25 perent stake.
Eni holds a 40.6 ownership stake in the host facility with Statoil holding a 27.9 percent stake, Petrobras holding a 15 percent stake, ExxonMobil holding a 10.75 percent stake, Maersk holding a 5 percent stake and Eni holding a 0.75 percent stake.