Total, Chevron team up for deepwater Gulf of Mexico exploration

Total E&P USA Inc has entered into an agreement to capture seven prospects operated by Chevron USA Inc in the deepwater Gulf of Mexico. The agreement covers 16 blocks.

The associated prospects are located in two promising plays and areas of the GoM: Wilcox in the central GoM next to the Anchor discovery, and Norphlet in the eastern GoM near the Appomattox discovery.

Total’s participation in these wells will be between 25% and 40%.The first of these wells was spudded in late July on the Ballymore prospect in Mississippi Canyon.

Arnaud Breuillac, Total’s president Exploration & Production, said: “This agreement, together with the recently announced participation in the Jack field as part of the Maersk Oil acquisition, increases Total’s footprint in the USA GoM where it can apply its exploration expertise and deepwater technologies.

“Total values Chevron’s performance as a GoM deepwater company and this agreement expands a successful co-ownership already in place on the Tahiti field. As a continued effort to high-grade its portfolio, Total won six offshore exploration licences in the August lease sale.”

Valentina Kretzschmar, director, Corporate Analysis, Wood Mackenzie, said: “Total is sharpening its long-term focus by increasing its exposure to deepwater exploration and renewables.

“The move is an indication that Total’s appetite for exploration is coming back. Since 2009, Total’s GoM drilling has been operated by Cobalt under their strategic alliance for the basin. This led to the large North Platte discovery in 2012, followed by several dry exploration wells.

“The new Chevron partnership could revitalise Total’s portfolio in the GoM.”