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Petroleum

BHP and Chevron Announce Positive Results on Typhoon Project in Gulf of Mexico

Strategic Insights

— 2 min read

The successful drilling results of the GC237-1 appraisal well in the Typhoon prospect, located in the Green Canyon area of the Gulf of Mexico, have prompted BHP and Chevron to plan additional appraisal drilling in 1999. The well, operated by Chevron, has penetrated 310 net feet of oil over several horizons, with operations suspended after reaching this milestone. The discovery is a follow-up to the GC236-1 exploration well, which encountered 130 net feet of oil on a separate fault block drilled in 1998.

Key Takeaways:

  • The GC237-1 appraisal well, operated by Chevron, has suspended operations after penetrating 310 net feet of oil over several horizons, in the Typhoon prospect, located in the Green Canyon area of the Gulf of Mexico.
  • The well is a follow-up to the GC236-1 exploration well, which encountered 130 net feet of oil on a separate fault block drilled in 1998.
  • Chevron and BHP Petroleum are 50% working interest partners and plan to drill two to three additional appraisal wells in 1999 to further delineate the Typhoon discovery.
  • A joint project team of Chevron and BHP Petroleum experts will be in place by the end of March, 1999.
  • BHP has an equity interest in 25 blocks in the northern and central Green Canyon area, in water depths ranging from 1,200 feet to 4,000 feet.
  • The area also contains Green Canyon 18 and Green Canyon 60, two Mobil-operated producing assets in which BHP has a 25% and 45% working interest respectively.
  • The partnership plans to drill two or three additional appraisal wells in 1999, following the success of the GC237-1 appraisal well.
  • Chevron has a significant deepwater presence in the Gulf of Mexico, with interests in three major projects, including Typhoon.
  • Genesis, operated by Chevron, began producing oil in water 2,600 feet deep, on February 1, 1999, with Gemini expected to begin production later this year.

Statistics:

  • 310 net feet of oil penetration in the GC237-1 appraisal well.
  • 130 net feet of oil penetration in the GC236-1 exploration well.
  • 25 blocks in the northern and central Green Canyon area owned by BHP, in water depths ranging from 1,200 feet to 4,000 feet.
  • 100 miles off the Louisiana coast, where the well is located.
  • 2,000 feet of water, in which the well was drilled.
  • 50% working interest owned by Chevron and BHP Petroleum in the joint venture.
  • 57% stake held by Chevron in the Genesis project.
  • 40% interest held by Chevron in the Gemini project.
  • 50,000 barrels of oil or equivalent gas per day, expected production from Chevron's working interest in deepwater by 2001.
  • February 1, 1999, the date on which Genesis began producing oil.
  • 2001, the year in which Chevron's working interest production from deepwater is expected to peak.

Sources:

  • BHP, "Successful Gulf of Mexico Deepwater Well Results", Australian Stock Exchange, February 9, 1999.
  • Chevron, "Positive Results Prompt Additional Appraisal Wells on Chevron and BHP's Typhoon Project", New Orleans, February 8, 1999.

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