NEW YORK (TheStreet) -- Shares of Chevron Corp. (CVX) are up 0.31% to $114.38 in pre-market trade after the company said that crude oil and natural gas production has begun at the Jack/St. Malo project in the Lower Tertiary trend, deepwater U.S. Gulf of Mexico.
Jack/St. Malo is a key part of Chevron's strong queue of upstream projects, the company noted.
The $7.5 billion project is Chevron's costliest active Western Hemisphere investment, Bloomberg noted.
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The Jack and St. Malo fields are among the largest in the Gulf of Mexico. They were discovered in 2004 and 2003, respectively, and production from the first development stage is expected to ramp up over the next several years to a total daily rate of 94,000 barrels of crude oil and 21 million cubic feet of natural gas.
With a planned production life of more than 30 years, current technologies are anticipated to recover in excess of 500 million oil-equivalent barrels. Successive development phases, which could employ enhanced recovery technologies, may enable substantially increased recovery at the fields.
"The Jack/St. Malo project delivers valuable new production and supports our plan to reach 3.1 million barrels per day by 2017," said George Kirkland, vice chairman and executive VP, Upstream, Chevron Corporation.
TheStreet Ratings team rates CHEVRON CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: