U.S. oil major Chevron has awarded pipeline operator Williams a contract for the provision of offshore natural gas transportation services for the Anchor development in the U.S. Gulf of Mexico.
Anchor, sanctioned in December 2019, is located 140 miles off the coast of Louisiana in the Green Canyon area of the Gulf of Mexico.
Chevron plans to drill multiple wells and construct a floating production platform capable of handling the new rich natural gas and oil production from the Anchor development.
Williams said: "Williams will leverage its existing footprint and system capabilities to transport Anchor’s natural gas production to the Discovery system, of which Williams is 60% owner and operator; DCP is 40% owner. The new rich natural gas will be transported to Discovery’s processing plant in Larose, Louisiana, and the natural gas liquids will be fractionated and marketed at Discovery’s Paradis plant in Louisiana."
Micheal Dunn, Chief Operating Officer for Williams said: "We are extremely well-positioned in the Gulf of Mexico, with asset synergies that are second to none in this active region, and we’re pleased to leverage and expand our existing infrastructure to serve the growing needs of deep-water producers,” said. “Discovery offers producers the full suite of midstream natural gas services to maximize value for its customers, who partner with Williams to help them complete their value chain by safely gathering, processing and delivering the energy that fuels our nation and drives a clean energy economy.”
The Anchor field, located on Green Canyon block 807, about 225 kilometers off the coast of Louisiana, sits in approximately 1,524 meters water depth and is believed to hold more than 440 million barrels of potentially recoverable oil-equivalent resources.
It will be developed using the semi-submersible floating production unit (FPU) which will have a production capacity of 75,000 b/d of oil and 28 MMcf/d of gas, with the potential for future expansion.
Chevron's Anchor is expected to come online in the first half of 2024.