Chevron Corp. has sanctioned a waterflood project in the St. Malo field of the deepwater Lower Tertiary using technology designed to increase recovery and maximize existing resources in the Gulf of Mexico.

The waterflood project is Chevron’s first in the deepwater Wilcox trend and is expected to contribute an estimated ultimate recovery of more than 175 million boe. Two production wells are planned, along with three injector wells and topsides injection equipment for the Jack/St. Malo floating production unit, allowing Chevron to extend the life of the field.

“The St. Malo field is a world-class asset that is positioned for highly economic brownfield development,” said Chevron’s Steve Green, president of North America Exploration and Production. “With our leading technology, experienced workforce and broad portfolio, we're delivering value in the Gulf of Mexico.”

St. Malo, about 280 miles south of New Orleans in Walker Ridge blocks, has an estimated remaining production life of 30 years. The Jack/St. Malo fields were discovered in the early 2000s and sanctioned in 2014, and Chevron designed one of the largest production facilities ever to handle production. The fields are within 25 miles of each other in about 7,000 feet (2,100 meters) of water.

Total production by 2020 was forecast to hit 21 MMcf/d of natural gas and 94,000 b/d of oil.

Through subsidiaries Chevron U.S.A. Inc. and Union Oil Company of California, Chevron is majority (51%) stakeholder in St. Malo. Co-owners are MP Gulf of Mexico LLC (25%), which is jointly owned by Murphy Oil Corp. (80%) and Petrobras America Inc. (20%). Other co-owners are Equinor Gulf of Mexico LLC (21.5%), ExxonMobil Corp. (1.25%) and Eni Petroleum US LLC (1.25%).