US-based Chevron isn’t expecting first production to come from its Big Foot platform in the Gulf of Mexico until 2018, a delay of about two and a half years that will result in reducing production estimates by up to 22,000 b/d net.
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The Big Foot platform. |
“At this point we are not expecting any Big Foot production in 2016 or 2017, which is a reduction from our original plan of 10,000 net barrels per day in 2016 and 22,000 in 2017. As we complete the investigation and update our plan we will advise you accordingly,” Jay Johnson, Chevron EVP upstream said in the company’s 2Q 2015 earnings call.
Delays began as early as June when work to install the Big Foot tension leg platform was suspended after nine of the 16 tendons lost buoyancy, in an incident that is still under investigation.
Big Foot, Chevron’s sixth operated facility in the deepwater Gulf of Mexico, is located in the Walker Ridge area, about 225mi (360km) south of New Orleans, Louisiana, in 5200ft (1600m) water depth.
According to Chevron, the site has been secured, including successful recovery of the seven remaining tendons. The tension leg platform was undamaged and is being moved to a safe harbor location. Site surveys and equipment inspections are in progress to determine whether the installed piles and recovered tendons can be reused and what equipment will require replacement in order to complete the project.
Big Foot, which has the production capacity of 75,000 bbl and 25 MMcf/d of natural gas, was scheduled to for first production later this year. It is estimated to contain total recoverable resources in excess of 200 MMboe.
The field was discovered in 2006. Primary pay sands are Middle to Upper Miocene ranging from 19,000-24,000ft (5800-7300m) and lie below a salt canopy ranging from 8000-15,000ft (2400-4500m) thick. Three exploration and appraisal wells with multiple sidetracks have been drilled safely and successfully in the field to define the Big Foot structure.
Chevron’s subsidiary, Chevron USA Inc. is the operator with a 60% interest, along with partners Statoil (27.5%) and Marubeni Oil & Gas (12.5%).
In the company's 2Q 2015 results, the company revealed a 90% decrease in its earnings year-over-year, which led the company to implement several efforts to improve its future, including cutting 1500 jobs globally.
Its US upstream operations suffered a $1.04 billion loss, compared to earnings of $1.05 billion last year, that the company said are due to lower crude oil realizations and higher depreciation expenses, primarily reflecting impairments, partially offset by higher crude oil production and lower operating expenses.
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