Statoil, along with operator Chevron and other partners, have sanctioned the Jack/St Malo field development, located in the ultra-deepwater Walker Ridge area of the US Gulf of Mexico (GoM).

The Jack and St. Malo fields are located within 40 kilometers of each other approximately 450 kilometers south of New Orleans, Louisiana, in water depths of 2,100 meters (7,000 feet). The initial development of the project will require an investment of approximately USD 7.5 billion and comprise three subsea centers tied back to a hub production facility which will have a production capacity of 170,000 barrels of oil per day and 42.5 million cubic feet of natural gas per day. Start-up is anticipated in 2014.

“Jack/St. Malo is a major discovery in ultra-deep waters of the GoM, and is considered a new frontier for the oil industry. I am excited that Statoil is such a major player here,” says senior vice president Øivind Reinertsen, head of Statoil’s US and Mexico organization.

“Statoil is bringing technology and offshore expertise which we believe will benefit us and our partners in developing this play.”

The Jack and St. Malo fields are estimated to contain combined total recoverable resources in excess of 500 million barrels of oil equivalents. Seven exploration and appraisal wells have been successfully and safely drilled at these fields since 2003, including a record-setting well test in 2006 which was drilled to a total depth of 8590 meters (28,175 feet).

Statoil has a 25 percent interest in Jack and 21.5 percent in St Malo.