Chevron expands in the Gulf

Chevron USA has approved the construction of a 55 mile deepwater crude oil pipeline that will connect the Chevron-operated Tahiti project to the Amberjack pipeline in the US Gulf of Mexico.


Chevron USA, a subsidiary of Chevron Corporation has approved the construction of a 55 mile deepwater crude oil pipeline that will connect the Chevron-operated Tahiti project to the Amberjack pipeline in the US Gulf of Mexico.



Chevron also approved expanding the pipeline from a 20” diameter to a 24” diameter design that can handle 300,000 barrels of oil per day and accommodate additional discoveries in the WalkerRidge and GreenCanyon areas. Chevron expects to invest a total of $3.3 billion this year in US exploration, development and production projects.



“The Tahiti pipeline positions Chevron for near- and long-term sustained production growth in the deepwater Gulf of Mexico,” said Gary Luquette, president of Chevron North America Exploration and Production Company. “The pipeline will serve Chevron’s $3.5 billion Tahiti project and may also facilitate the development of other current and future discoveries.”



The 55 mile pipeline will be built by Amberjack Pipeline Company and owned equally by Chevron Pipe Line Company and Shell Pipe Line Company.



The pipeline will be located in 4,200’ of water in GreenCanyon block 641 and will connect the Tahiti platform, currently under construction, and the Amberjack pipeline system and other existing crude oil pipeline infrastructure in Green Canyon Block 19.


The Tahiti project is expected to begin production in 2008 and to have a maximum daily production of 125,000 barrels of crude oil and 70 million cubic feet of natural gas.