Chevron Corporation (NYSE:CVX) disclosed on Monday that it started oil and gas production from its Ballymore subsea tieback in the deepwater Gulf of Mexico.

Chevron U.S.A. Inc. operates the project with a 60% stake, while TotalEnergies (NYSE:TTE) E&P USA, Inc. holds the remaining 40%.

This project, launched in May 2022 and connected to the existing Blind Faith platform, has a total daily gross production capacity of up to 75,000 gross barrels of oil per day and 50 million cubic feet of gas per day.

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The Ballymore project, located in the Mississippi Canyon in roughly 6,600 feet of water and about 160 miles southeast of New Orleans, marks Chevron's first development in the Norphlet trend.

It is expected to yield an estimated 150 million barrels of oil equivalent gross over its lifetime.

Ballymore marks another milestone in Chevron's plan to reach 300,000 net barrels per day of oil equivalent from the Gulf by 2026.

This event aligns with Chevron’s focus on expanding its presence in the region.

Nicolas Terraz, president of Exploration & Production at TotalEnergies added, "The start-up of Ballymore will increase TotalEnergies' production capacity in U.S. deepwater to more than 75,000 boe/d and contribute to the Company's targeted hydrocarbon production growth of over 3% in 2025"

This month, Chevron finalized a deal to sell a 70% stake in its East Texas natural gas assets to TG Natural Resources LLC (TGNR), an entity backed by Tokyo Gas Co., Ltd. and Castleton Commodities International LLC (CCI), valued at $525 million.

Investors can gain exposure to CVX via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE).

Price Action: CVX shares are down 0.78% at $136.80 premarket at the last check Monday.

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