Union Oil Company News

BP's behemoth Argos offshore oil platform, the centerpiece of the company's $9 billion Mad Dog 2 project in the U.S. Gulf of Mexico, has arrived in the U.S. after a 16,000-mile journey from South Korea.The platform, loaded onboard Boskalis' BOKA Vanguard heavy transport vessel, had left South Korea on February 3, and it has this week arrived in the Kiewit Offshore Services fabrication yard in Ingleside, Texas."The arrival of the new floating production unit is a major milestone towards the completion of Mad Dog 2.

Oil major BP has informed that its Argos oil platform, built by Samsung Heavy Industry, has set sail from South Korea and is en route to Texas.The platform, which will be capable of producing up to 140,000 gross barrels of crude oil per day from up to 14 production wells, will be deployed in the U.S. Gulf of Mexico as part of the Mad Dog 2 development.As previously reported, the Argos platform weighing almost 70,000 tons was in January loaded on Boskalis' semi-submersible heavy transport vessel BOKA Vanguard preparation for the sailaway.Announcing the sailaway…

BP's giant Argos offshore platform, to be used for the Mad Dog 2 development in the Gulf of Mexico, was this week loaded on Boskalis' BOKA Vanguard vessel in South Korea and is preparing set sail for the U.S.According to Boskalis, the Dutch marine services contractor, the giant Argos floating production unit weighing nearly 70,000 tons was floated onto Boskalis' semi-submersible heavy transport vessel BOKA Vanguard on Tuesday."The vessel was submerged well over 29 meters to make this happen.

BHP Billiton has announced that the Board has approved expenditure of US$2.2 billion for its share of the development of the Mad Dog Phase 2 project in the Gulf of Mexico. BHP Billiton holds a 23.9 per cent participating interest in the Mad Dog field. BP, the operator, holds a 60.5 per cent participating interest, and Union Oil Company of California, an affiliate of Chevron U.S.A. Inc., holds the remaining 15.6 per cent participating interest. During the fourth quarter of 2016, BP sanctioned the Mad Dog Phase 2 project. Mad Dog Phase 2, located in the Green Canyon area in the Deepwater Gulf of Mexico, is a southern and southwestern extension of the existing Mad Dog field.

Sole standalone in a sea of tiebacks: BP's Mad Dog is the only major final investment decision (FID)  in deepwater Gulf of Mexico this year, says Wood Mackenzie. On 1 December 2016, BP (60.5% and operator) sanctioned the Mad Dog Phase II development in the deepwater Gulf of Mexico (GoM). BP and partners BHP Billiton (23.9%) and Chevron (15.6%) operate the Mad Dog field, which began production in January 2005. The second phase commercialises southern segments of the field that were discovered in 2009 and 2011. The project was first evaluated in 2012 and has been through multiple revisions as the partners honed in on an optimal development solution. Wood Mackenzie expects first production in late 2021.

Chevron Corporation (NYSE: CVX) announced that crude oil and natural gas production has begun at the Jack/St. Malo project in the Lower Tertiary trend, deepwater U.S. Gulf of Mexico. Jack/St. Malo is a key part of Chevron's strong queue of upstream projects and was delivered on time and on budget. The Jack and St. Malo fields are among the largest in the Gulf of Mexico. They were discovered in 2004 and 2003, respectively, and production from the first development stage is expected to ramp up over the next several years to a total daily rate of 94…

Statoil together with co-owners in the Stampede development in the Gulf of Mexicohas sanctioned the Stampede project in the U.S. Gulf of Mexico. Statoil said it will invest $1.5 billion in the Stampede development, which is expected to begin production in 2018. Statoil owns 25% of Stampede, which is operated by Hess. Stampede, a new project named from unitizing the former discoveries of Knotty Head and Pony, is located approximately 350 kilometers (215 miles) from New Orleans, Louisiana at a water depth of more than 1,000 meters (3,500 feet). The reservoir depth is 9,100 meters (30,000 feet).

Chevron Corporation announced today that its subsidiary, Union Oil Company of California (Union), has reached a final investment decision to proceed with the development of the Hess Corporation-operated Stampede project in the deepwater U.S. Gulf of Mexico. Stampede is a deepwater subsea development, which will be tied-back to a newly constructed Tension Leg Platform. The project design capacity will be 80,000 barrels of crude oil per day. Project cost is expected to be approximately $6 billion. The drilling program includes a total of six production and four water injection wells. Drilling is planned to commence in the fourth quarter 2015 with first production expected in 2018.