Chevron Corp. won approval for the first “completely new exploration” in the deep waters of the Gulf of Mexico after BP Plc’s oil spill last year, a regulator said.
Chevron will drill in Keathley Canyon Block 736 in 6,750 feet (2,057 meters) of water, about 216 miles off the Louisiana coast, the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement said today in a statement.
While Chevron is the fifth company permitted to resume work in the area following the last year’s Deepwater Horizon rig explosion, it’s the first to be allowed to tap a reservoir that has never produced, according to the regulator.
Chevron rose 20 cents to $105.68 at 11:57 a.m. in New York Stock Exchange composite trading. The shares gained 16 percent this year before today.
Noble Energy Inc., BHP Billiton Ltd., ATP Oil & Gas Corp. and Exxon Mobil Corp. have received U.S. permits to resume work halted after BP’s April 20 spill.
Chevron, based in San Ramon, California, will use equipment from Marine Well Containment Co. in case of a well blowout, the Bureau of Ocean Energy Management said.
Initial drilling on the well began a year ago, and was suspended on June 9, according to the statement.