LLOG to repurpose GOM floating production unit

LLOG Exploration Co. LLC (LLOG) will develop the Salamanca floating production unit (FPU) by refurbishing a previously decommissioned Gulf of Mexico (GoM) production unit, the company said in a release May 4.

The FPU will be on Keathley Canyon (KC) 689 in about 6,400 ft of water and serve as the collection point for production from the joint development of the Leon discovery in KC blocks 642, 643, 686, and 687, as well as from Castile discovery in KC 736. 

By modifying a previously built unit instead of constructing a new one, the company bypasses emissions of new construction, and reduces the time and cost to bring the discoveries online, LLOG said.

The Leon and Castille discoveries are expected to be jointly developed through a total of three subsea wells with initial production tied back to the Salamanca FPU, with design capacity of 60,000 b/d and 40 MMcf natural gas. Two of the initial three development wells are planned for Leon field and one for Castile field. Initial production from the joint development is expected mid-2025.

All major topside repurposing and modifications will be done in the United States. Regulatory approvals required to proceed with the development have been received.

Leon was discovered by Repsol in 2014 on KC 642, about 250 miles southwest of New Orleans in 6,000 ft of water. The discovery well was drilled to a total depth of 32,000 ft and encountered nearly 700 ft of high-quality net oil pay in multiple sands in the Lower Tertiary. 

The Castile discovery was drilled on KC 736 in over 6,500 ft of water to a total of over 31,000 ft and encountered nearly 400 ft of high-quality net oil pay, also in the Lower Tertiary.

The FPU is being financed through an ownership arrangement with investment vehicles managed by ArcLight Capital Partners LLC. LLOG will be operator with partners Repsol E&P USA Inc. and Beacon Offshore Energy LLC.