Chevron Wins New Approval For Deepwater Gulf Project

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Chevron, the second-largest U.S. oil company, won approval from U.S. regulators today for a new deepwater oil and gas exploration project in the Gulf of Mexico, marking the second time this week regulators have awarded permits for new deepwater projects in the Gulf.

Earlier this week, Royal Dutch Shell (RDS-A), Europe's largest oil company, won approval to drill three new wells at the Aurgia field 130 miles off the coast of Louisiana. Chevron won approval to drill in the Keathley Canyon Block 736, which is almost 220 miles off the coast of Louisiana.

California-based Chevron (CVX) won the permit because the company complied with the new safety standards, including a requirement to demonstrate the capacity to contain a subsea blowout, according to the Wall Street Journal. The permit awarded to the company is the first for a field that has never produced oil since the government imposed moratorium on deepwater drilling in the Gulf was lifted.

The Bureau of Ocean Energy Management, Regulation and Enforcement has now approved five permits for deepwater drilling projects in the Gulf this month.