Chevron greenlights Ballymore oil development in US Gulf of Mexico ultra-deepwater

Chevron took a final investment decision May 17 to push ahead with its Ballymore project in the US Gulf of Mexico ultra-deepwater, proposing a three-mile subsea tieback to the company's existing Blind Faith platform.

The project will have a design capacity of 75,000 b/d of crude oil and is the major's first development in the geological Norphlet play off the Louisiana/Mississippi coast which Shell pioneered with its Appomattox producing facility which started up in May 2019.

"Chevron's US Gulf of Mexico production is some of the lowest carbon intensity [output] in our portfolio at around 6 kg CO2 equivalent per barrel of oil equivalent and is a fraction of the global industry average," said Steve Green, president of Chevron North America Exploration and Production, in a statement.

Ballymore is "designed to lower development costs by using a subsea tieback approach, standardized equipment and repeatable engineering solutions – leveraging existing operated infrastructure," Green said.

The project will be in the US Gulf's Mississippi Canyon area in around 6,600 feet of water, about 160 miles southeast of New Orleans, Chevron said. Ballymore's potentially recoverable oil-equivalent resources are estimated at more than 150 million barrels.

Project cost: $1.6 billion

The project, which is expected to flow first oil in 2025, involves three production wells tied back through one flowline to Blind Faith facility, at a cost around $1.6 billion. Oil and natural gas output will be delivered through existing infrastructure.

Shell has said the Norphlet play is characterized by high pressures and high well temperatures, where good quality oil can be found in high-quality sandstone reservoirs.

While Ballymore is located in 6,600 feet of water, Appomattox, announced as a discovery in 2010, is even deeper at 7,200 feet.

The initial Ballymore well was drilled to a total total measured depth of greater than 29,000 feet and found more than 670 feet net oil pay – a sizeable column.

Chevron operates Ballymore with a 60% stake, while co-owner TotalEnergies holds 40% interest.

Ballymore is not Chevron's only US Gulf ultra-deepwater discovery under development. The company opted in December 2019 to greenlight Anchor, a 2014 discovery. Anchor is a Lower Tertiary discovery in the US Gulf's centrally located Green Canyon area.