(This story first appeared in the 18 March hardcopy edition of Upstream newspaper.)

Spain's Repsol confirmed it is now operator of Buckskin after Chevron cancelled plans to develop the Lower Tertiary oil and gas field late last year.

“Following the change of operatorship, we are evaluating options and future plans,” a Repsol spokesperson said.

A final investment decision is expected as soon as the fourth quarter of 2016.

Sources suggested Repsol’s best option will be to tie back the field to Anadarko Petroleum’s Lucius spar, as Chevron had planned, though Repsol would not confirm its current thought process.

Lucius lies less than 10 miles (16 kilometres) east of Buckskin in about 7100 feet of water.

Repsol is believed to have solicited various third parties to carry out early and informal evaluations of development options for Buckskin.

Those evaluations are said to be under way, though it could not be determined if Repsol has put out any official calls for bids.

Before Chevron exited Buckskin, the plan was to co-develop the field with the nearby Moccasin discovery.

Initial production rates were pegged at around 30,000 barrels per day of crude and 15 million cubic feet per day of gas.

Chevron said in an annual filing last month that it transferred its 55% stake in Buckskin to the other three working interest partners.

Repsol — which previously owned a 12.5% stake, and also operated the 2009 discovery well — said it now holds a 27.8% interest. Maersk Oil of Denmark owns the largest share with 44.4%, while US junior Samson Offshore owns the remaining 27.8%.

Chevron had selected WorleyParsons’ subsea division Intecsea to carry out front-end engineering and design work for the tie-back scheme.

Intecsea had been at work on the project for more than a year before Chevron called a halt.

Buckskin lies in a remote area of the US Gulf, deep in south-eastern Keathley Canyon, so a tie-back to Lucius — the only nearby infrastructure — still appears to make the most sense for development.

Intecsea is thought to remain in communication with Repsol, but it is not clear how involved the company is at this stage.

Project costs were said to be the primary factor in Chevron’s decision to quit Buckskin.

Unofficial estimates seen by Upstream suggest Chevron’s price tag was about $2.7 billion for the development.

Chief executive John Watson said on an earnings call in January that the company has “better places to put our money”.

Anadarko is understood to have told Repsol that a tie-back to Lucius can cost less than Chevron had proposed — just using Anadarko’s standardised equipment could result in meaningful cost savings, for example.

It is understood that Repsol’s only other option would be a standalone development. The company’s Leon discovery, about 40 miles north-west of Buckskin, is currently undergoing appraisal, with early results said to be encouraging.

Repsol is thought to be considering a floating production, storage and offloading vessel at Leon, but the field is likely too far away to be developed in tandem with Buckskin.

Chevron had originally planned a standalone floater for Buckskin and Moccasin, but scrapped the idea in favour of a tie-back.

The Moccasin blocks are not currently under lease.

Regardless, the clock is ticking for Repsol. The Buckskin primary lease term expired in 2014. Chevron had extended the leases with a suspension of operations (SOP) request, but that expired last month.

After Repsol took over, the company immediately filed a new SOP request, which is pending review by the US Bureau of Safety & Environmental Enforcement (BSEE).

A BSEE spokeswoman said that “no operations can be performed” while the SOP is under review.

“We don’t know how long the review will take,” she added.

In any case, Repsol will likely need to move fast.

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