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Energy giant Chevron has given the go-ahead for a deep-water oilfield project in the Gulf of Mexico.

Known as the Anchor project, it will require an investment of around $5.7 billion and is said to be an industry-first for deep-water development.

The Anchor field is located in the Green Canyon area, approximately 140 miles off the coast of Louisiana, at a depth of approximately 5,000 feet. The total potentially recoverable oil-equivalent resources are estimated to exceed 440 million barrels.

Chevron said the facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The first oil from the field is expected to be delivered in 2024.

“This decision reinforces Chevron’s commitment to the deep-water asset class,” said Jay Johnson, executive vice-president, upstream, “we expect to continue creating value for shareholders by delivering standalone development projects and sub-sea tie backs at a competitive cost.”

Steve Green (pictured), president of Chevron North America exploration and production, said: “For new projects in the Gulf of Mexico, we have reduced development costs by nearly a third, compared to our last generation of greenfield deep-water investments.

“We’re doing this by standardizing equipment, utilizing fit-for-purpose surface facilities that require less capital and employing drill-to-fill strategies.”

In 2019, Chevron’s net oil production was a record 3.06 million barrels a day.