HOUSTON (Reuters) – Chevron has achieved a significant technological breakthrough by producing first oil from a U.S. Gulf of Mexico field under extreme subsea pressures, the energy company announced on Monday.
The $5.7-billion Anchor project marks a new era of deepwater production from areas previously inaccessible due to the lack of equipment capable of handling pressures up to 20,000 pounds per square inch.
Chevron, in partnership with TotalEnergies, anticipates the Anchor development will continue to produce for the next 30 years. At its peak, the floating platform is expected to pump up to 75,000 barrels of oil and 28 million cubic feet of natural gas per day. The field is located approximately 140 miles (225 km) off the coast of Louisiana.
“This industry-first deepwater technology allows us to unlock previously difficult-to-access resources and will pave the way for similar high-pressure deepwater developments across the industry,” said Nigel Hearne, Chevron’s Executive Vice President.
Another U.S. oil company, Beacon Offshore Energy, is aiming to replicate Chevron’s 20,000-psi achievement at its Shenandoah deepwater field, also situated off the coast of Louisiana. That project has faced delays, with first oil now expected in the second quarter of 2025.
BP initially discovered the Gulf of Mexico’s first 20,000-psi field, known as Kaskida, in 2006, but at the time, subsea technologies were not advanced enough to allow for its development. However, recent technological advancements have enabled BP to greenlight the Kaskida project, with first oil production anticipated by 2029.
Chevron’s Anchor project will involve seven subsea wells connected to a floating production platform. The subsea field is estimated to contain up to 440 million barrels of recoverable oil and gas.
“This milestone at Anchor underscores Chevron’s capability to safely and efficiently deliver projects within budget in the Gulf of Mexico,” said Bruce Niemeyer, head of Chevron’s Americas oil and gas production.
