Chevron to spend $900M developing field

SAN RAMON, Calif., Oct. 10 (UPI) -- Chevron Corp. said Monday it would spend at least $900 million producing oil from a Gulf of Mexico field under 7,000 feet of water.

Given that the field lies more than 20,000 feet beneath the seabed, Chevron will have to send drilling equipment more than 5 miles down from the surface of the Gulf of Mexico, American City Business Journals reported.

Chevron, the largest leaseholder in the gulf, holds a 62.5-percent working interest in the field. Kerr-McGee Corp. owns the remaining interest.

The cost of developing Blind Faith, which lies 160 miles southeast of New Orleans, will be at least 900 million, Chevron said.

Blind Faith holds an estimated 100 million barrels of oil.