Chevron to rebuild in the Gulf of Mexico

HOUSTON, June 11 (UPI) -- Chevron is spending money in the U.S. Gulf of Mexico to have an existing installation removed and new equipment added in deep waters, French company Technip said.

Deanna Goodwin, president of the North American subsidiary of the French contractor, said her company received the contract to take down existing infrastructure and install new subsea equipment for Chevron.

For a lump undisclosed sum, the company will install new equipment for Chevron's exploration and production arm to support a floating production system in the deep waters of the Mississippi Canyon reserve area in the Gulf of Mexico.

The company, using its Houston offices as the center of operations, will use the Deep Blue vessel, one of the largest vessels of its kind, to lay foundations and flow lines for Chevron's offshore operations.

Chevron was among those companies reporting a revenue loss because of the weak crude oil market. In the U.S. exploration and production sector, the company reported a $460 million loss in the first quarter compared to earnings of $912 million year-on-year.

For production itself, Chevron reported a year-on-year increase of 3.4 percent, with U.S. operations in the deep waters of the Gulf of Mexico contributing to the growth.