Chevron sanctions new deep-water oil field

SAN RAMON, Calif., Dec. 17 (UPI) -- Sanctioning a new oil field in the Gulf of Mexico is symbolic of a commitment to U.S. energy, a Chevron executive announced.

Chevron and its partners announced it sanctioned the development of its $4 billion Big Foot project in deep waters of the Gulf of Mexico.

"Sanctioning Big Foot underscores our commitment to the Gulf of Mexico and will contribute to future U.S. energy supply," Chevron Vice Chairman George Kirkland said in a statement.

Big Foot is about 225 miles south of New Orleans in 5,200 feet of water. Production capacity is estimated at an initial 75,000 barrels of day and 25 million cubic feet of natural gas per day.

The field, discovered in 2006, is estimated to hold as much as 200 million barrels of oil equivalent.

Norwegian energy company Statoil, which holds a 27.5 percent stake in Big Foot, said the Gulf of Mexico project would be a "core part" of its operations in region.

Deep-water exploration is under scrutiny following the April sinking of the Deepwater Horizon oil platform in the Gulf of Mexico. The U.S. government is suing British energy company BP for the accident, which resulted in one of the worst oil spills in the history of the industry.

Chevron is one of the largest lease holders in the gulf, averaging 149,000 bpd. First oil from Big Foot is expected by 2014.