They might both be majors, but Chevron U.S.A. Production Co. andShell Exploration & Production Co. still think it’s wise to notgo it alone in the deep waters of the Gulf of Mexico. The companieshave agreed to share drilling rigs and jointly drill twoexploratory wells there this year.

The companies will drill the wells using Shell-contracted rigs,and Chevron will use a Shell-contracted rig to drill a third wellin a joint venture with Texaco. Additionally, Chevron will provideShell one future rig slot on Transocean Sedco Forex Inc.’s”Discoverer Deep Seas” drill ship.

“In 1998, Chevron and Shell worked together and set a worldrecord by drilling in a water depth of 7,718 feet on the ‘Gamera’prospect at Atwater Valley 118,” said Andrew L. Hardiman, vicepresident of Chevron’s Gulf of Mexico Deep-water Business Unit.”With this new effort, the companies hope to set new benchmarks forlow-cost deep-water drilling by utilizing Shell’s ‘Drilling theLimit’ process.”

Shell will use the “Transocean Marianas” rig to drill theinitial well on Chevron’s “Hurricane” prospect in 2,000 feet ofwater at Ewing Bank Block 1010. Drilling is scheduled to begin inJuly. Chevron will have the majority interest in the prospect andwill be operator for the initial well and any subsequent wells.Partners include Shell and Agip Petroleum Exploration Co. Inc., asubsidiary of ENI.

Shell will also drill the initial exploratory well on Chevron’s”Roy” prospect at Mississippi Canyon 988 using Noble DrillingCorp.’s “Jim Thomson” semi-submersible drilling vessel. The wellwill be drilled in 4,800 feet of water. Chevron and Shell plan tobegin drilling by the end of April.

Chevron will also operate an exploratory well with Texaco onChevron’s “Poseidon” prospect in Mississippi Canyon Block 772, inwater 4,900 feet deep. Chevron plans to begin drilling the well inMay using the “Transocean Marianas” rig, currently contracted toShell. Chevron and Texaco each hold a 50% interest in Poseidon, alarge structure 21 miles west of the Crazy Horse discovery and 24miles east of Shell’s Mars project.

This program represents three of the six exploratory wellsChevron will drill in the deep-water Gulf of Mexico this year. Eachof these three wells will be drilled to depths greater than 20,000feet total vertical depth.

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