Total Farms into Chevron US Gulf Prospects
Total announced September 22 it has entered into an agreement to participate at between 25% and 40% in wells on 16 Chevron-operated blocks in the deepwater US Gulf of Mexico including seven prospects, one being the large Norphlet sour gas discovery.
Total said these wells are essentially located in two promising plays and areas: Wilcox (next to the Anchor discovery), and Norphlet (near Appomattox).
The first of the wells on the 16 Chevron blocks was spudded late July on the Ballymore prospect in Mississippi Canyon.
Norphlet was discovered in 1994 by Chevron, which estimated its net share of gas reserves in the 'vast Norphlet trend' then at 1 trillion ft3.
Shell, which operates blocks close to Norphlet, in 2014 estimated potential finds in the 'Norphlet trend' at over 700mn barrels oil equivalent.
Total however has not provided resource estimates in its latest announcement, while Chevron has yet to issue a statement.
Total upstream chief Arnaud Breuillac said: "This agreement, together with the recently announced participation in the Jack field as part of the Maersk Oil acquisition, increases Total’s footprint in the US Gulf of Mexico where it can apply its exploration expertise and deepwater technologies. Total values Chevron’s performance as a GoM deepwater company and this agreement expands a successful co-ownership already in place on the Tahiti field.”
“Total is sharpening its long-term focus by increasing its exposure to deepwater exploration, and renewables," said Valentina Kretzschmar, director of corporate analysis at consultancy Wood Mackenzie.
Total's existing GoM deepwater focus is on two producing oil fields, a 17% stake in Chevron-operated Tahiti, operated by Chevron, and a 33% interest in Petrobras-operated Chinook, as well as a 40% stake in the "world-class" Cobalt International-operated North Platte discovery. Total will also become a 25% partner in the Chevron-operated Jack oil field, once its acquisition of Maersk Oil is completed. Total has stakes in over 160 GoM exploration leases. Additionally onshore US, Total owns and operates 100% of the former Chesapeake properties in the Barnett and is a 25% participant in the Utica field.
Mark Smedley