Oil and Gas Companies' Drilling Spending Estimates
Chevron made a final investment decision of $5.7 billion toward the Anchor project in the Gulf of Mexico in December 2019. BP and Shell also sanctioned projects in 2019. Wood Mackenzie had forecasted that investments from new sanctions could exceed $10 billion in 2019.
- In December 2019, Chevron sanctioned the Anchor project, the industry's "first deepwater high-pressure" (up to 20,000 psi) project, in the Gulf of Mexico.
- Chevron has reduced its development cost to nearly two-thirds of its last generation deepwater investments.
- The initial development of the project will require an investment of around $5.7 billion.
- The first stage will comprise a seven-well production unit and should start producing oil by 2024.
- The Anchor field is at a distance of 140 miles from the coast of Louisiana.
St. Malo Project
- In September 2019, Chevron sanctioned the fourth phase of the St. Malo project.
- The initial development cost of the project was $7.5 billion. However, the investment for the fourth phase has not been made public.
Atlantis Phase 3
- BP sanctioned a $1.3 billion investment for Atlantis Phase 3 in Jan 2019.
- Atlantis Phase 3 will start producing oil in 2020 and boost production by 38,000 boe/d (at peak).
- Atlantis Phase 3 is in the Gulf of Mexico 150 miles off the coast of New Orleans.
Thunder Horse South Expansion Phase 2
- BP sanctioned the "Thunder Horse South Expansion Phase 2" in May 2019.
- The project will increase capacity by 50,000 boe/d (at peak) and will see first oil in 2021.
- However, BP has not publicly disclosed the investment amount.