Chevron delivers industry-first ultra-high-pressure oil rig By Reuters

HOUSTON (Reuters) – Chevron (NYSE: ) has made a technological breakthrough, producing the first oil from a field in the U.S. Gulf of Mexico under extreme undersea pressure, the energy company said Monday.

Its $5.7 billion project, called Anchor, ushers in an era of deepwater production that had long been banned because of a lack of equipment capable of handling pressures of up to 20,000 pounds per square inch.

Chevron and partner TotalEnergies ( EPA: ) expect the Anchor development to produce for 30 years.

At its peak, the floating platform will pump up to 75,000 barrels of oil and 28 million cubic meters per day. The field is about 140 miles (225 km) off the coast of Louisiana.

“This industry-first deepwater technology allows us to unlock previously difficult-to-access resources and will enable similar high-pressure deepwater developments for the industry,” said Chevron Executive Vice President Nigel Hearne.

Another US oil company, Beacon Offshore Energy, aims to replicate Chevron’s 20,000 psi feat at its deepwater Shenandoah field, also off the coast of Louisiana. This project has been delayed, with first oil expected in the second quarter of 2025.

BP (NYSE: ) discovered the first 20,000 psi field in the Gulf of Mexico, called Kaskida, in 2006, but subsea technologies at the time did not allow development. Until now, subsea technologies have largely been limited to pressures of 15,000 psi.

But last month, BP gave the green light to development of the field, citing new developments. It plans to capitalize on subsea equipment projects and achieve first Kaskida oil production in 2029.

Chevron’s development will have seven subsea wells tied to the Anchor floating production platform. The undersea field is estimated to contain up to 440 million barrels of recoverable oil and gas.

“This Anchor milestone demonstrates Chevron’s ability to safely deliver projects on budget in the Gulf of Mexico,” said Bruce Niemeyer, Chevron’s head of oil and gas production in the Americas.