Chevron Sees Jack/St. Malo Final Investment Decision in Late '10

In an earnings conference call Friday, Chevron's top executive David O'Reilly noted that the U.S. supermajor will make a final investment decision for its Jack/St. Malo project in the Gulf of Mexico by late 2010.

Discovered in July 2004 by the Discoverer Deep Seas drillship, the Jack oil field is located on Walker Ridge Block 759 and 758 in the Gulf of Mexico. Situated in approximately 7,000 feet (2,134 meters) of water, the ultra-deepwater discovery is located 270 miles (435 kilometers) southwest of New Orleans. Discovered in October 2003 by the Discoverer Spirit drillship, St. Malo is located on Walker Ridge Block 678 in a water depth of 2,100 feet (640 meters).

Chevron earlier this year forecast Jack/St. Malo's peak capacity at 120,000 to 150,000 barrels of oil equivalent per day. The project is estimated to contain recoverable reserves of more than 500 million barrels.