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Jan 28 (Reuters) - Oil producer Chevron Corp said itwould work with peers BP Plc and ConocoPhillips to explore and appraise 24 jointly held offshore leases indeepwater Gulf of Mexico.
The region is poised to deliver more than 700,000 barrelsper day of new crude over three years, reversing a decline inproduction as it resurges after the worst offshore oil spill inU.S. history in 2010.
The potential rise in production is attracting oilcompanies, who are keen on joint ventures as exploration costsin offshore fields are much higher.
Chevron said on Wednesday it would operate the leases, forthe Gila and Tiber fields and the Gibson exploration blocks eastof Gila, in the northwest part of Keathley Canyon.
BP said it would sell about half its equity interests inGila and Tiber to Chevron. (http://bit.ly/1zbpdsF)
BP, whose Macondo oil well blowout caused the 2010 spill,rejoined bidders for exploration and production leases in theGulf of Mexico last year, after the U.S. government lifted a banbarring the company from new federal contracts.
The three companies are also evaluating the potential for acentralized production facility in the region, similar toChevron's Jack/St. Malo project that will tie a platform to theocean floor 7,000 feet below the surface and tap a reservoir26,000 feet deep.
Shares of Chevron, BP and Conoco where all down more than 2percent on Wednesday, mirroring the fall in crude prices. (Reporting by Swetha Gopinath in Bengaluru; Editing by JoyjeetDas)