Deep Water Gulf of Mexico Presentation

8/8/2019 Deep Water Gulf of Mexico Presentation

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Chevron 2007

Deep W aterGulf of Mexico

Merrill Lynch Global Energy ConferenceNovember 7, 2007

P aul SiegeleVice PresidentDeep Water Exploration & P rojectsChevron North Am erica Exploration and P roduction


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Chevron Manages a W orld-Class P ortfolioof Projects

Projects shown are >$1Billion C&E net Chevron share except for BBLT

North Duri

Tombua

Landana BBLT Angola

LNG

Gorgon Wheatstone

Gehem Gendalo

TCO SGI/SGP Karachaganak

II & III ACG I-III

Plataforma Deltana

AOSP Expansion

Tahiti Perdido Jack St. Malo Blind Faith

Agbami Nigeria

EGTL Usan Nsiko Bonga

SW/Aparo

OlokolaLNG

Chad

Piceance Basin

Amauligak

Frade Papa-Terra BC-20

Chevrons Major Capital P rojects


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Chevron Manages a W orld-Class P ortfolioof Projects

Australia

Chevrons Major Deepw ater Operations

Philippines U.S.A.

Canada

Faroes

Nigeria

Angola

Brazil

and Deepw ater Operations


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Storms and hurricanes

Loop and eddy currents causevortex induced vibrations andmotions to drill strings

Unpredictable high pressure gascharged stringers and faultsnear surface

Mobile/flow-able/dissolvable10,000 thick salt canopy withunpredictable layers of highlyvariable trapped sediments

Unpredictable base of salt rapid pressure differentials

Thief zones of significantlylower pressure which cause lostcirculation fluid loss

Ultra-deep reservoir with hightemperatures, high pressuresand low natural flow-ability

Sea Level

40,000

8,000

16,000

24,000

32,000

Allochthonous SigsbeeSalt Canop y

Cretaceous

Upper TertiarySediments

Autochthonous Salt

Basement

SuprasaltSediment

Gulf of

Mexico

Empire State

Building ~500Meters

LowerTertiary

D ee p W a t e r Gu l f o f M e x i co Technical Challenges in Drilling


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0

100

200

300

400

500

600

700

800

900

1000

M M B O E

Chevron continues to have a strongposition in Deep W ater discovered fields

Top 50 Gulf of Mexico Deep Water FieldsField size distribution from Wood Mackenzie database

T a h i t i

G r e a t

W h i t e

J a c k

K n o t

t y H e a

d

M a d

D o g

S t . M a l o

T u b u l a r

B e l

l s

B i g F o o t

P

e t r o n

i u s

P u m a

K 2 G e n e s

i s

G o t c h a

B l i n d F a i t h

T o n g a

T r i d e n

t

Chevron Interest


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PerdidoSt. Malo

Tahiti

Blind Faith

Jack

Knotty Head

Big Foot

Puma

Tubular Bells

Tonga

Exploration AppraisalAppraisal Major Capital ProjectsMajor Capital Projects

Houston

New Or leans

Chevrons Deepw ater Gulf of Mexico P ortfolio

Tahiti Development

Jack Discovery

Blind Faith DevelopmentP erdido Fold Belt Development

2007 -2010


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M aj o r Ca p i t a l Pr o j e ct s Gu l f o f M ex i co Tahiti Field Development

Field Development withSpar and Drill Centers

CVX operated (58%)

Total capital: $3.5 Billion

2 subsea drill centers producing to atruss Spar

Water Depth: 4000

125 MBOPD/70 MMCFD peak production

400-500 MMBOE potentially recoverable

Current Activity: Hull moved to CorpusChristi and finishing the well completions


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M aj o r Ca p i t a l Pr o j e ct s Gu l f o f M ex i co Tahiti Spar Transported to Texas


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M aj o r Ca p i t a l Pr o j e ct s Gu l f o f M ex i co

Tahiti Shackles Shackle diameter = 7.5 8.5 inchesShackle weight = 2100 2800 pounds

Shackles are used toconnect chains and

mooring components tothe subsea piles and spar


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M aj o r Ca p i t a l Pr o j e ct s Gu l f o f M ex i co Blind Faith Project

Tahiti

Perdido Fold Belt

NewOrleans

Blind Faith

Hull fabrication in Finland

Topsides construction in Texas

CVX operated (62.5% )

Subsea wells producing to aSemi-submersible facility

Wa ter Depth: 7,000

40 MBOPD/ 35 MMCFD peakproductionFirst Oil: 2008

100 MMB OE potentiallyrecoverable


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Hull & M oorings Progress Photos


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,,,,

P erdido Fold Belt

Chevron has interest inmultiple discoveries and in theRegional Development Host

8,500- 9,500 water depth

200 miles to shore 60 miles to nearest

infrastructure

Development drilling andfacilities fabrication underway.

Tahiti

Perdido Fold Belt

NewOrleans

Blind Faith

GreatWhite

Silvertip

Tobago

Trident

Tiger

10 Miles

Perdido RegionalHost & Export

Pipeline


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JackSt. MaloTigerTobago

Great W hite(Shell)

TridentChevron Discovery

Wilcox Trend

Chevron Leases

* Source: World Oil (May 2005)

Ch e v r o n W i l co x D i sco v e r i e s

Emerging Low er Tertiary Trend

Potentially 3-15 BBOE Estimated Ultimate Reserves in theLower Tertiary Wilcox Trend *


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Drilled to a total depth o f 28,175 feet

Completed and tested in 7,000 feet of w ater,

and more than 20 ,000 feet under the sea floorDuring the test, sustained a flow rate of morethan 6,000 barre ls of crude oil per day

Testing represented approximately 40 percentof the total net pay measured in the w ell

Em e rg i n g Lo w e r Ter t i ar y Tr e n d Jack #2 W ell Test Results


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Deep W ater GOM W ells are among the

Most Technically Challenging in the W orld

Deepest successful well test in theU.S. Gulf of Mexico with Jack 2(28,175), a well situated in 7,000feet (2,135 meters) of water andextending more than 20,000 feet

(6,100 meters) beneath the seafloor

New drilling depth record (34,189)for the U.S. Gulf of Mexico at KnottyHead

World record for successfully drillinga well in the deepest water depth(10,011) in the Perdido Fold Belt

Ex a m p l e s w h e r e w e p u s h t h e e n v e lo p e


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D ee p W a t e r Te ch n o l o g y Br e ak t h r o u g h

New Deep W ater Drillship

Most advanced drillingcapabilities

Dynamically positioned,with double-hull

Two drilling systemsin a single derrick

Stronger and more efficienttop drive so wells can bedrilled deeper

Other unique features will

target drilling wells up to40,000 feet of total depth

Variable deckload of over 20,000 metric tons; capableof drilling in water depths of up to 12,000 feet

Transoceans Discoverer Clear Leader


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De ep Wa t e r Fa ci l i t i e s/ I n f r a st r u c t u r e Meeting Future Technology Challenges

Compliant Tower Future Floating Production System Model

~ 5 0 0 M e t e r s

Reliability of Facilities/SystemsFlow Assurance of Product

Long Distance Tiebacks

Well Intervention Cost Reduction


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Deepwater is a complex, risky, andcostly environment. Many technicalchallenges remain to be solved.

Chevron is focused on finding solutionsand providing the needed creativity andcollaboration.

Capable People

World Class Safety Performance

Innovative Technology

Strong Partnerships

Summary


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Questions?

Deep Water Gulf of Mexico Presentation

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