Shenzi base: The new Gulf development will be based on a Modec Moses-design TLP, similar to Enterprise Product Partners's Marco Polo facility (pictured)
BHP Billiton gets Shenzi go-ahead
BHP Billiton's Shenzi oil and gas field in the deepwater Gulf of Mexico has been approved for development.
The Shenzi field is located in the deepwater Gulf of Mexico approximately 120 miles from the coast of Louisiana, with estimated reserves of 350 to 400 million barrels of oil equivalent. BHP Billiton's facilities will produce up to 100,000 barrels of oil and 50 million cubic feet of gas per day, the company said.
BHP Billiton is the operator and majority stakeholder in the venture, with a 44% share, along with BP and Hess, which each hold 28%.
The field comprises Green Canyon Blocks 609, 610, 653, and 65 and lies in water about 4300 feet deep.
The initial field development will consist of seven producing wells. The full development is expected to comprise up to 15 producing wells and possibly involve water injection, the company said.
BHP Billiton expects the project to cost $4.4 billion, of which it will contribute $1.94 billion.
The company said a standalone tension-leg platform (TLP) would be used for the production facility, and that all major contracts for the project were in place.
First oil is expected in mid-2009, when the seven initial pre-drilled wells will be tied back to the TLP.
The Shenzi field will be BHP's second operated field in the Gulf of Mexico, along with its Neptune field.