Texaco and Chevron are proceeding on a fast track with a $185million subsea production system for their Gemini prospect, asubsalt project in the deep-water Gulf of Mexico expected to yieldup to 300 Bcf of gas and four million barrels of condensate.

Gemini is in Mississippi Canyon Blocks 291/292/247, about 90miles southeast of New Orleans in 3,400 feet of water. TexacoExploration and Production, a subsidiary of Texaco, is operatorwith a 60% working interest. Chevron U.S.A. Production Companyholds a 40% working interest.

Initial production is scheduled for mid-1999, with peak dailyrates of 150 to 200 MMcf of gas and 2,000 to 3,000 barrels ofcondensate.

“Gemini will deliver first production in less than 18 months,putting the project on a fast track,” said Claire S. Farley,president of Texaco North America Production. “It will alsoestablish the initial infrastructure in the Mississippi Canyonregion where Texaco and Chevron are joint owners of more than 30leases. Accomplishing these two important objectives will enable usto further develop the prospects we have in the deep-water Gulf,which is a key element of Texaco’s strategic plan to realize annualproduction growth of some 8% over the next five years.”

The project consists of drilling two development wells,completion of one existing exploratory well, design, fabricationand installation of processing facilities on an existing hostplatform, a subsea manifold system and dual gas export flow lines.Drilling is scheduled to begin in the second half of 1998. Theproduction system consists of three wells tied into a subseamanifold flowing 27 miles via dual 12-inch flow lines to anexisting processing platform in Viosca Knoll Block 900. Chevron isoperator of this facility with a 75% interest, and Texaco holds theremaining 25%.

“This system is based on field proven subsea technology andoffers the flexibility for future third-party production tie-ins,”said Robert S. Lane, vice president Texaco North America Production- East. “We will focus on system reliability and operability, andat the same time strive to minimize costs.”

Gemini was discovered in 1995. In May 1996 the interval to bedeveloped was tested in the No. 1 exploratory well at a rate of 32MMcf/d. Test data indicate higher flow rates can be expected whenwells are completed.

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