Chevron accelerates oil and gas output with water injection technology in Gulf of Mexico

Chevron Corporation (NYSE: CVX) has commenced water injection operations at two of its deepwater facilities in the U.S. Gulf of Mexico, marking a significant step to enhance oil and natural gas recovery in one of its most productive regions. The company’s move is expected to maximize output from existing fields at the Jack/St. Malo and Tahiti facilities, which are known for producing some of the world’s lowest carbon intensity oil and gas. Chevron’s strategy focuses on boosting its production capacity to 300,000 net barrels of oil equivalent per day in the U.S. Gulf of Mexico by 2026.

Chevron Leverages Water Injection at Jack/St. Malo and Tahiti

Chevron has started water injection operations at its Jack/St. Malo and Tahiti facilities in a bid to extend the life and recovery potential of these deepwater oil and gas fields. Located approximately 280 miles south of New Orleans, Louisiana, in waters around 7,000 feet deep, the Jack/St. Malo facility is pivotal for Chevron’s Gulf of Mexico operations. The St. Malo field within this facility has now implemented its first waterflood project in the deepwater Wilcox trend, an initiative designed to inject water into the reservoir to boost pressure and enhance the extraction of hydrocarbons.

The project, which came in under budget, included the addition of water injection facilities, the drilling of two new production wells, and the completion of two new injection wells. Chevron estimates that this will increase the St. Malo field’s gross ultimate recovery by approximately 175 million barrels of oil equivalent, further solidifying its position as a key player in deepwater production. The Jack and St. Malo fields have collectively produced nearly 400 million gross barrels of oil equivalent since they began operations in 2014.

Chevron operates the St. Malo field through its subsidiary, Union Oil Company of California, holding a 51 percent working interest. The remaining interests are held by MP Gulf of Mexico, LLC (25 percent), Equinor Gulf of Mexico LLC (21.5 percent), Exxon Mobil Corporation (1.25 percent), and Eni Petroleum US LLC (1.25 percent).

Meanwhile, Chevron’s Tahiti facility, located approximately 190 miles south of New Orleans in 4,100 feet of water, has also seen the commencement of water injection efforts. This facility initiated its first deepwater Gulf producer-to-injector conversion wells, which involves converting former oil-producing wells into injection wells. The project also included the installation of a new water injection manifold and a 20,000-foot flexible water injection flowline, representing a major step in Chevron’s drive to enhance oil recovery techniques.

The Tahiti facility has a track record of robust production, having surpassed 500 million gross barrels of oil-equivalent cumulative output since it began operations in 2009. Chevron U.S.A Inc. operates the facility with a 58 percent working interest, while its partners Equinor Gulf of Mexico LLC and TotalEnergies E&P USA, Inc. hold 25 percent and 17 percent stakes, respectively.

Strengthening Chevron’s Technological Edge in Deepwater Operations

The introduction of these water injection projects demonstrates Chevron’s commitment to utilizing cutting-edge technology and optimizing existing resources in the Gulf of Mexico. Bruce Niemeyer, president of Chevron Americas Exploration & Production, noted, “Delivery of these two projects maximizes returns from our existing resource base and contributes toward growing our production to 300,000 net barrels of oil equivalent per day in the U.S. Gulf of Mexico by 2026.” Niemeyer also highlighted the recent production startup at Chevron’s high-pressure Anchor field, reinforcing the company’s reputation for excellence in technological innovation and project execution.

These advancements are not only pivotal for maximizing recovery but also for extending the productive life of these fields, ensuring that Chevron continues to generate value from its existing deepwater assets. As one of the largest producers in the Gulf of Mexico, Chevron is strategically positioned to benefit from its significant investments in water injection and other enhanced oil recovery techniques.

Future Prospects and Advanced Recovery Techniques

Chevron is not stopping with its current water injection projects. The company is actively exploring advanced drilling, completion, and production technologies that could be implemented in future development phases at both the Jack/St. Malo and Tahiti facilities. These advanced techniques have the potential to significantly increase the amount of recoverable resources, thereby extending the economic life and profitability of these fields.

Such innovative measures are part of Chevron’s broader strategy to leverage its expertise in deepwater exploration and production, maintain a competitive edge in the energy market, and achieve sustainable growth. The company’s continued investment in the Gulf of Mexico aligns with its focus on developing energy resources that meet the world’s growing demand while maintaining low carbon intensity.