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TotalEnergies SE said Wednesday it had executed a swap transaction with Chevron Corp that gives the French company a 25 percent stake in 26 leases operated by its United States rival in the Gulf of America.
The 24 Green Canyon leases and two Walker Ridge leases – located 150-250 kilometers (about 93-155 miles) from shore – contain “well-proven plays”, TotalEnergies said in a press release.
The transaction “provides TotalEnergies with access to a new set of high-impact opportunities”, said TotalEnergies senior vice president for exploration Nicola Mavilla.
TotalEnergies noted it has invested nearly $12 billion in developing oil, liquefied natural gas and electricity projects in the U.S. since 2022.
In exchange Chevron gets a 75 percent operating stake in two exploration blocks next to existing exploration blocks jointly held by the two companies.
Earlier this year TotalEnergies acquired a 25 percent ownership in 40 leases operated by Chevron in the U.S. Gulf.
These blocks, in federal waters, span about 1,000 square kilometers (nearly 390 square miles). These consist of 18 blocks in East Breaks area, 13 blocks in Walker Ridge and nine blocks in the Mississippi Canyon. The leases sit 175-330 kilometers from shore, according to TotalEnergies.
The acquisition extends “the successful U.S. offshore collaboration with Chevron beyond the existing partnerships in Ballymore (40 percent TotalEnergies) which achieved first production this year, Anchor (37.14 percent) where production started up last year and the Jack (25 percent) and Tahiti (17 percent) producing assets”, TotalEnergies said June 16.
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Ballymore, Chevron’s first development in the Norphlet trend of the Gulf, has a declared capacity of 75,000 barrels of oil per day (bopd). Chevron estimates potentially recoverable resources to be 150 million barrels of oil equivalent (MMboe) over the life of the project. Ballymore is in the Mississippi Canyon in the Gulf’s deep waters. It sits approximately 160 miles southeast of New Orleans in about 6,600 feet of water, according to Chevron.
Meanwhile the Anchor floating production unit, Chevron’s sixth operated facility producing in the U.S. Gulf, has a capacity of 75,000 bopd and 28 million cubic feet per day of natural gas. The field holds an estimated 440 MMboe of total recoverable resources, according to Chevron. Anchor is in the Green Canyon about 140 miles from Louisiana’s coast. Anchor has water depths of about 5,000 feet, according to Chevron.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
