Chevron Unveils Oil Discovery in U.S. Gulf

Chevron Corp. (NYSE:CVX) unveiled a deepwater oil discovery in the U.S. Gulf of Mexico about 180 miles off the Louisiana coast.

The discovery, in the Guadalupe prospect, builds on the oil major's position in the Gulf, which Chevron executive George Kirkland said is a "core focus area where we expect significant production growth over the next two years."

The well is located in 3,992 feet of water and was drilled to a depth of 30,173 feet. Chevron said the well encountered significant oil pay, but didn't give further details.

Chevron began drilling the Guadalupe well in June 2014. More tests are being conducted on the discovery well and additional appraisal wells will be needed to determine the extent of the resource.

Chevron's U.S. unit has a 42.5% working interest in the prospect and is the operator of the Guadalupe well. BP PLC (BP, BP.LN) has a 42.5% interest and Venari Resources LLC has a 15%.