Chevron Approves Expanded Deepwater Pipeline for Tahiti

Chevron has approved the construction of a 55-mile deepwater crude oil pipeline that will connect the Chevron-operated Tahiti project to the existing Amberjack pipeline in the U.S. Gulf of Mexico. Chevron also approved expanding the pipeline from a 20-inch diameter to a 24-inch diameter design that can handle 300,000 barrels of oil per day and accommodate additional discoveries in the Walker Ridge and Green Canyon areas. Chevron expects to invest a total of $3.3 billion this year in U.S. exploration, development and production projects.

"The Tahiti pipeline positions Chevron for near- and long-term sustained production growth in the deepwater Gulf of Mexico. Chevron has had great success in deepwater exploration, and this project is another milestone in Chevron's commitment to develop and deliver new crude oil and natural gas production," said Gary Luquette, president of Chevron North America Exploration and Production Company. "The pipeline will serve Chevron's $3.5 billion Tahiti project and may also facilitate the development of other current and future discoveries."

The 55-mile pipeline will be built by Amberjack Pipeline Company LLC and owned equally by Chevron Pipe Line Company and Shell Pipe Line Company LP. The pipeline will be located in 4,200 feet of water in Green Canyon block 641 and will connect the Tahiti platform, currently under construction, and the existing Amberjack pipeline system and other existing crude oil pipeline infrastructure in Green Canyon Block 19. The Tahiti project is expected to begin production in 2008 and to have a maximum daily production of 125,000 barrels of crude oil and 70 million cubic feet of natural gas.

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