Chevron Sanctions Anchor Project in the Deepwater U.S. Gulf of Mexico

Chevron Corporation (NYSE: CVX) announced today it has sanctioned the Anchor project in the U.S. Gulf of Mexico. This marks the industry’s first deepwater high-pressure development to achieve a final investment decision. Delivery of the new technology, which is capable of handling pressures of 20,000 psi, also enables access to other high-pressure resource opportunities across the Gulf of Mexico for Chevron and the industry.

“This decision reinforces Chevron’s commitment to the deepwater asset class,” said Jay Johnson, executive vice president, Upstream, Chevron Corporation. “We expect to continue creating value for shareholders by delivering stand-alone development projects and sub-sea tie backs at a competitive cost.”

“For new projects in the Gulf of Mexico, we have reduced development costs by nearly a third, compared to our last generation of greenfield deepwater investments,” said Steve Green, president of Chevron North America Exploration and Production. “We’re doing this by standardizing equipment, utilizing fit-for-purpose surface facilities that require less capital and employing drill to fill strategies. At Anchor, we streamlined our front-end engineering and design phase and are utilizing more industry standards in our designs and equipment to lower costs while maintaining Operational Excellence.”

The Anchor Field is located in the Green Canyon area, approximately 140 miles (225 km) off the coast of Louisiana, in water depths of approximately 5,000 feet (1,524 m). The initial development of the project will require an investment of approximately $5.7 billion. Stage 1 of the Anchor development consists of a seven-well subsea development and semi-submersible floating production unit. First oil is anticipated in 2024.

The planned facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The total potentially recoverable oil-equivalent resources for Anchor are estimated to exceed 440 million barrels. Chevron, through its subsidiary Chevron U.S.A. Inc., is operator and holds a 62.86 percent working interest in the Anchor project. Co-owner TOTAL E&P USA, Inc. holds 37.14 percent working interest.

Chevron Corporation is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; and develops and deploys technologies that enhance business value in every aspect of the company’s operations. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

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Certain terms, such as “resource” and “potentially recoverable oil-equivalent resources” may be used in this news release to describe certain aspects of the company’s portfolio and oil and gas properties beyond the proved reserves. For definitions of, and further information regarding, these and other terms, see the “Glossary of Energy and Financial Terms” on pages 54 through 55 of the company’s 2018 Supplement to the Annual Report and available at chevron.com. As used in this news release, the term “project” may describe new upstream development activity, including phases in a multiphase development, maintenance activities, certain existing assets, new investments in downstream and chemicals capacity, investment in emerging and sustainable energy activities, and certain other activities. All of these terms are used for convenience only and are not intended as a precise description of the term “project” as it relates to any specific government law or regulation.

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