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LLOG starts up deepwater Buckskin project
LLOG Exploration has achieved production from its deepwater Buckskin project in the US Gulf of Mexico, marking its rst development to target the Lower Tertiary trend, writes Anna Kachkova
GULF OF MEXICO
WHAT:
LLOG has achieved
rst oil at the Buckskin project in the deepwater Gulf of Mexico.
WHY:
The company is a
rare example of an independent targeting the Lower Tertiary trend.
WHAT NEXT:
More Lower Tertiary activity is expected this year and beyond.
LLOG Exploration announced on June 25 that it had started production from its Buckskin project in the deepwater US Gulf of Mexico.
Buckskin is a subsea tieback to the Lucius spar, which is operated by Anadarko Petroleum. It is located across Keathley Canyon blocks 785, 828, 829, 830, 871 and 872 in roughly 6,800 feet (2,073 metres) of water. e project is notable because it marks LLOG’s rst productive deep- water eld in the Lower Tertiary – or Paleogene – trend.
e Lower Tertiary is characterised by high pressures and high temperatures, with the for- mation located in water depths of up to 10,000 feet (3,048 metres), and a further several miles beneath the seabed. Earlier this decade, a hand- ful of discoveries targeting the trend generated considerable buzz, but the oil price collapse killed off the momentum behind developing the Lower Tertiary just as it was building. e start-up of Buckskin may be a welcome sign for the industry that steps are being taken to revive the push.
Buckskin boost
LLOG’s announcement about the start-up of Buckskin comes as con rmation a er Israel’s
Navitas Petroleum, one of the other partners in the project, said on June 16 that production had started. LLOG operates Buckskin and owns a 33.8% working interest in the project, alongside its a liate companies. Navitas is the smallest partner in the project, with a 7.5% stake. e other Buckskin partners are Spain’s Repsol with 22.5%, Beacon O shore Energy with 18.7% and Ridgewood Energy with 17.5%.
e initial phase of the project consists of two wells in Keathley Canyon Block 829 and a 6-mile (10-km) subsea tieback to the Lucius platform, which is located at Keathley Canyon Block 875. e two wells were drilled – to depths of around 29,000 feet (8,839 metres) – and completed in 2018. e partners then installed subsea facilities to complete the tieback earlier this year. LLOG said in its statement that the drilling, completion, and subsea installation were all completed ahead of schedule and on budget. According to Repsol, the early proving of Buckskin led to a 60% cost reduction in the project.
e partners expect production from the rst phase to ramp up to 30,000 barrels per day of oil on a gross basis. e project holds proven reserves of around 474 million barrels of oil, and Navitas said earlier this month that
Buckskin is tied back to Anadarko Petroleum’s Lucius spar.
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w w w . N E W S B A S E . c o m Week 25 27•June•2019