U.S. regulators said Thursday Chevron Corp. (CVX) has been approved to conduct new oil-and-gas exploratory drilling in the deepwater Gulf of Mexico, the first authorization since a drilling ban was lifted in the area.
U.S.
regulators said Thursday Chevron Corp. (CVX) has been approved to conduct new
oil-and-gas exploratory drilling in the deepwater
Gulf
of Mexico
, the first authorization since a drilling ban was
lifted in the area.
The approved permit allows Chevron to drill a new well in Keathley Canyon Block
736, about 216 miles off the
Louisiana
coastline, the Bureau of Ocean Energy Management, Regulation and Enforcement
said in a press release. Chevron's permit is the fifth approved this month by
the federal agency to resume drilling in the deepwater Gulf but is the first
that allows exploratory drilling into a field that has never produced, the
government said.
Initial drilling on Chevron's well began in March of last year, but activity
was suspended on early June due to the drilling ban imposed following the
Deepwater Horizon oil spill, the government said.
Regulators issued the permit because Chevron complied with the new safety
standards, including a requirement to demonstrate the capacity to contain a
subsea blowout, the government said.
Chevron will use the Marine Well Containment Company containment system as its
oil spill containment solution. The system was built by a nonprofit consortium
of large oil companies led by ExxonMobil Corp. (XOM), which also received a
permit to drill in the deepwater Gulf this week.
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