Chevron Announces First Production from Gemini Deepwater Project

Chevron and its partner, Texaco, recently began producing natural gas from Gemini, a deepwater subsea production development in the Gulf of Mexico, the companies announced today.

Gemini is producing 77 million cubic feet of natural gas and 1,500 barrels of gas condensate per day from its first well, which was originally drilled as an exploratory well in 1995. Two additional wells have been drilled and will be completed by the year's end, peaking production at approximately 150 to 200 million cubic feet of gas and 2,000 to 3,000 barrels of gas condensate per day. At those levels, Gemini will be one of the largest subsea projects producing in the Gulf of Mexico.

Located approximately 90 miles southeast of New Orleans on Mississippi Canyon Blocks 292 and 247, the Gemini project features a remotely controlled subsea facility on the ocean floor in water 3,400 feet deep. The facility controls production of natural gas and gas condensate from wells drilled more than 11,300 feet below the seabed. The gas and condensate are then transported through pipelines to a Chevron-operated offshore production facility 27 miles north at Viosca Knoll 900 for processing.

"The Gemini project team overcame significant technical hurdles to achieve first production less than 18 months after project approval," said Andy Hardiman, vice president of Chevron U.S.A. Production Co.'s Deepwater Business Unit. "This is a great accomplishment by a great team of Texaco and Chevron experts."

Chevron has a 40 percent interest in Gemini, which is operated by Texaco, the project's 60 percent partner. Gemini is Chevron's second deepwater development in the Gulf of Mexico.

Chevron's first deepwater project was the drilling and production spar Genesis, which came on line in January. Genesis currently produces 28,000 barrels of oil and 28 million cubic feet of natural gas per day from its first two development wells. Genesis will eventually drill and operate approximately 15 wells in water one-half mile deep.

Typhoon, Chevron's third deepwater project, is in the development planning stage and is expected to achieve first oil by mid-2001.

Together, Genesis, Gemini and Typhoon are expected to reach peak production by 2002, making Chevron's net production from current deepwater developments approximately 70,000 barrels of oil and equivalent gas per day.


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