Intelligence brief (April 22 – May 5)
LLOG starts production from Delta House; ConocoPhillips’s Mississippi Harrier prospect comes up dry; Statoil plans no new US rigs in 2015
LLOG Exploration started production April 16 at its Delta House Floating Production System (FPS) at Mississippi Canyon 254, the company said in a statement.
Initial production capacity of the Delta House FPS is expected to be 80,000 barrels of oil and 200 million cubic feet of gas per day. LLOG plans to have eight wells online by the end of 2015.
Peaking capacity will be 100,000 barrels of oil per day and 240 million cubic feet of gas.
LLOG owns 70% of the Delta House field and will operate the facility. Ridgewood Energy, a private equity group, is a non-operating partner.
Delta House is the second FPS from LLOG. The company started production from its Who Dat FPC facility in 2011. Who Dat has a production capacity of 60,000 barrels of oil and 150 million cubic feet of natural gas per day.
“We expect to double our production when all of the [Delta House] wells come online this year,” LLOG said.
It took three years from first discovery to first production for the Delta House FPS project.
ConocoPhillips’s Mississippi Harrier prospect comes up dry
ConocoPhillips has found no commercial hydrocarbons in the Harrier prospect in Mississippi Canyon Block 118, ConocoPhillips reported on April 22. The US firm drilled to a total depth of 19,400 feet in the Gulf of Mexico field.
The well will now be plugged and abandoned, ConocoPhillips said.
Louisiana-headquartered oil and natural gas exploration and production company Stone Energy Offshore was a non-operating co-owner in the Harrier prospect, with a 37% working interest.
Statoil plans no new US rigs in 2015
Statoil does not plan to build any new exploration rigs in US waters in 2015, William Maloney, Statoil's head of US exploration, said April 22.
"I don't see us adding rigs this year…You don't need as many rigs if you can drill them quicker, better, faster and safely," Maloney told Reuters.
Statoil is one of the largest lease holders in the Gulf of Mexico and is partner to several fields under development in the region, such as Jack, St. Malo, Big Foot, Vito, Julia and Stampede.
Statoil’s production in the Gulf of Mexico is around 30,000 barrels of oil per day.