Chevron Commences Oil and Gas Production at Ballymore Project

HOUSTON: Chevron Corporation announced on Monday the initiation of oil and gas production from its Ballymore project in the U.S. Gulf of Mexico. This development marks a significant step towards the energy giant’s objective of boosting its production from the Gulf by 50% this year.

The Ballymore project, valued at $1.6 billion and situated roughly 160 miles southeast of New Orleans, comprises three wells. These wells are anticipated to yield up to 75,000 barrels of oil equivalent per day (boepd).

Chevron’s broader strategy includes elevating its oil and gas output from the Gulf to 300,000 boepd by 2026. Concurrently, the company is pursuing cost reductions of up to $3 billion across its operations. A key aspect of the Ballymore project is its reliance on existing infrastructure; instead of constructing a new production platform, the wells will utilize a tie-back system to transport oil and gas to an existing platform, thereby reducing expenses and expediting production.

Bruce Niemeyer, president of Americas exploration and production, noted that Ballymore’s tie-back approach to an existing facility has enabled a more rapid path to market for the produced resources.

The Ballymore project also marks Chevron’s inaugural venture into the Norphlet geological formation within the Gulf, an area that has historically seen fewer discoveries compared to other regions of the basin, according to Niemeyer.

Niemeyer emphasized the importance of technological advancements in expanding resource exploration, citing the utilization of ocean bottom nodes, which enable geophysicists to acquire enhanced data from beneath the ocean floor.

Chevron holds a 60% operating interest in Ballymore, with TotalEnergies holding the remaining 40%. The project is estimated to contain around 150 million barrels of oil equivalent in potentially recoverable resources.

Chevron possesses 370 leases in the Gulf of Mexico and intends to participate in an upcoming lease sale conducted by the U.S. government, Niemeyer stated.

The commencement of production at Ballymore follows Chevron’s announcement in August of first oil at the Anchor project, another Gulf of Mexico initiative recognized for its technological advancements enabling operations in deepwater pressures reaching up to 20,000 pounds per square inch.