Chevron Launches Anchor Production With Innovative Deepwater Tech

Chevron started production at its deepwater Anchor project in the US Gulf of Mexico. The project marks a significant advancement in the industry with the deployment of deepwater technology capable of safely operating at pressures up to 20,000psi: a first for the industry. The Anchor reservoir lies 34,000ft below sea level.

"This technology allows us to access previously challenging resources, enabling further deepwater high-pressure developments," said Nigel Hearne, Executive Vice President, Chevron Oil, Products & Gas.

Chevron operates the Anchor project with a 62.86% working interest, while co-owner TotalEnergies holds the remaining 37.14%. The Anchor development includes a semi-submersible floating production unit (FPU) designed to handle 75Mb/d of oil and 28MMcf/d of natural gas. The project involves seven subsea wells connected to the FPU, located in the Green Canyon area, approximately 140 miles off the coast of Louisiana at water depths of about 5,000ft. The field is estimated to hold up to 440MMboe in recoverable resources.

Chevron's Anchor FPU is the company's sixth operated facility currently producing in the Gulf of Mexico, one of the world's lowest carbon intensity oil and gas basins. By 2026, Chevron's Gulf of Mexico operations, both operated and non-operated, are expected to produce a combined 300Mboe/d.

To minimize carbon emissions, the Anchor FPU was designed as an all-electric facility featuring electric motors and electronic controls. The unit also incorporates waste heat and vapor recovery systems and uses existing pipeline infrastructure to transport oil and gas directly to US Gulf Coast markets.

High Stakes at Paleogene Oilfields

The technology used for Chevron’s Anchor project is a first for the industry, capable of withstanding pressures up to 20,000psi—one of the main challenges associated with the Paleogene plays in the Gulf of Mexico.

The fields in this area, discovered nearly 20 years ago, presented a significant opportunity. However, the technology to explore these plays did not yet exist, leading to the term "20k challenge," alluding to the 20,000 psi pressure obstacle. BP’s Deepwater Horizon, which discovered the Kaskida project in the Paleogene back in 2006, suffered a catastrophic accident in 2010, resulting in one of the worst oil spills in the area and stalling further development and innovation.

Nowadays, the region is drawing renewed attention. According to Bloomberg, in the coming years, the new Paleogene oilfields could increase the Gulf of Mexico’s production to nearly 2.3MMb/d—about 500Mb/d more than the current output. Oil could start flowing from the first of these developments by the end of this year, with more to follow in 2025.