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Released April 15, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--On Friday, Chevron Corporation (NYSE:CVX) (San Ramon, California) said it would acquire fellow oil and gas producer Anadarko Petroleum Corporation (NYSE:APC) (The Woodlands, Texas) in a cash and stock deal valued at $33 billion. The deal, which is subject to shareholder and regulatory approval, is expected to close in the second half of this year. Industrial Info is tracking $76.9 billion in projects for the two companies.
The move will expand Chevron's position in the Permian Basin. Chevron's Permian production was 16.2 billion barrels of oil equivalent last year, and Anadarko's Permian production was 4 billion barrels of oil equivalent. Last month, Chevron said it intended to increase production in the region to 600,000 barrels per day (BBL/d) by the end of next year and to 900,000 BBL/d by the end of 2023. The purchase of Anadarko will help fulfill these goals, giving the company a 75-mile corridor across the Delaware Basin portion of the Permian.
The merger also would expand Chevron's presence in the liquefied natural gas (LNG) sector, although it is uncertain how it would affect planned project activity. Among Anadarko's largest planned projects is the $15.5 billion development of an LNG liquefaction and export facility in Mozambique. Anadarko has signed several buyers to the project and has said it intends to make a final investment decision on the project in the first half of this year. The facility would have two production trains with a combined production capacity of 12 million tons per year. Construction could begin early next year, with completion in the first half of 2023. McDermott International Incorporated (NYSE:MDR) (Houston, Texas) and Chiyoda Corporation (Yokohama, Japan) are performing design-engineering. For more information, see Industrial Info's project report.
Among Anadarko's possible projects in the Permian is the addition of a third natural gas processing train at its facility near Mentone, Texas. The 200-million-cubic-foot-per-day train would bring the plant's total processing capacity to 600 million cubic feet per day. The $150 million project could kick off in 2021, taking about a year to complete. For more information, see Industrial info's project report.
Anadarko is a major player in the Gulf of Mexico, with 10 offshore facilities there. Chevron says it sees opportunities for tiebacks to Anadarko assets in the Gulf. Among Chevron's proposed projects in the Gulf of Mexico is the grassroot Anchor oil and gas production platform, about 140 miles off the coast of Louisiana in water depths of 4,000 to 5,000 feet. The semi-submersible platform would be capable of producing 80,000 BBL/d of crude oil and natural gas. Construction could begin later this year, for completion in in early 2022. For more information, see Industrial Info's project report.
Chevron also is a major in Australia's LNG sector, where it has the Gorgon and Wheatstone facilities. Among the projects planned for the Gorgon production facility is the Stage II subsea development in the Jansz-IO and Gorgon fields off the coast of Barrow Island. The project entails installing a new feed gas pipeline system, a monoethylene glycol pipeline, and additional subsea production wells and infrastructure. The $2.86 billion project is set to kick off early next year, taking about a year to complete. For more information, see Industrial Info's project report.
In the United Kingdom, Chevron is underway with a heavy oil drilling program in the Captain field of the North Sea. As part of an enhanced oil recovery program, Chevron will drill up to 15 production wells and water injection wells and tie them back to an existing floating production, storage and offloading facility. The program began in the second half of 2017 and is expected to last about three years. For more information, see Industrial Info's project report.
In addition to its Permian program, Chevron is also underway with Chemical and Refining projects in the U.S. Among the refining projects is an alkylation unit revamp at its refinery in North Salt Lake, Utah. The 4,500-BBL/d hydrofluoric alkylation unit will have a new catalyst system to increase feed flexibility, improve safety and decrease catalyst consumption. Construction began in first-quarter 2018 and is expected to be completed in early 2020. WorleyParsons Limited (North Sydney, Australia) is providing engineering, procurement and construction services. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The move will expand Chevron's position in the Permian Basin. Chevron's Permian production was 16.2 billion barrels of oil equivalent last year, and Anadarko's Permian production was 4 billion barrels of oil equivalent. Last month, Chevron said it intended to increase production in the region to 600,000 barrels per day (BBL/d) by the end of next year and to 900,000 BBL/d by the end of 2023. The purchase of Anadarko will help fulfill these goals, giving the company a 75-mile corridor across the Delaware Basin portion of the Permian.
The merger also would expand Chevron's presence in the liquefied natural gas (LNG) sector, although it is uncertain how it would affect planned project activity. Among Anadarko's largest planned projects is the $15.5 billion development of an LNG liquefaction and export facility in Mozambique. Anadarko has signed several buyers to the project and has said it intends to make a final investment decision on the project in the first half of this year. The facility would have two production trains with a combined production capacity of 12 million tons per year. Construction could begin early next year, with completion in the first half of 2023. McDermott International Incorporated (NYSE:MDR) (Houston, Texas) and Chiyoda Corporation (Yokohama, Japan) are performing design-engineering. For more information, see Industrial Info's project report.
Among Anadarko's possible projects in the Permian is the addition of a third natural gas processing train at its facility near Mentone, Texas. The 200-million-cubic-foot-per-day train would bring the plant's total processing capacity to 600 million cubic feet per day. The $150 million project could kick off in 2021, taking about a year to complete. For more information, see Industrial info's project report.
Anadarko is a major player in the Gulf of Mexico, with 10 offshore facilities there. Chevron says it sees opportunities for tiebacks to Anadarko assets in the Gulf. Among Chevron's proposed projects in the Gulf of Mexico is the grassroot Anchor oil and gas production platform, about 140 miles off the coast of Louisiana in water depths of 4,000 to 5,000 feet. The semi-submersible platform would be capable of producing 80,000 BBL/d of crude oil and natural gas. Construction could begin later this year, for completion in in early 2022. For more information, see Industrial Info's project report.
Chevron also is a major in Australia's LNG sector, where it has the Gorgon and Wheatstone facilities. Among the projects planned for the Gorgon production facility is the Stage II subsea development in the Jansz-IO and Gorgon fields off the coast of Barrow Island. The project entails installing a new feed gas pipeline system, a monoethylene glycol pipeline, and additional subsea production wells and infrastructure. The $2.86 billion project is set to kick off early next year, taking about a year to complete. For more information, see Industrial Info's project report.
In the United Kingdom, Chevron is underway with a heavy oil drilling program in the Captain field of the North Sea. As part of an enhanced oil recovery program, Chevron will drill up to 15 production wells and water injection wells and tie them back to an existing floating production, storage and offloading facility. The program began in the second half of 2017 and is expected to last about three years. For more information, see Industrial Info's project report.
In addition to its Permian program, Chevron is also underway with Chemical and Refining projects in the U.S. Among the refining projects is an alkylation unit revamp at its refinery in North Salt Lake, Utah. The 4,500-BBL/d hydrofluoric alkylation unit will have a new catalyst system to increase feed flexibility, improve safety and decrease catalyst consumption. Construction began in first-quarter 2018 and is expected to be completed in early 2020. WorleyParsons Limited (North Sydney, Australia) is providing engineering, procurement and construction services. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
