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Posts Tagged ‘LLOG’

Salamanca FPU (Repsol photo)

Every deepwater platform installed since Feb. 2018, when Chevron installed its Big Foot tension leg platform (TLP), has been a Floating Production Unit (aka FPU or production semisubmersible). During that period, no new SPARs, FPSOs, or TLPs were installed.

The list (below) of these simpler, safer, greener FPUs has grown by two with the initiation of production at Shenandoah and Salamanca. Note the water depth range from 3725 to 8600 ft.

platformoperatorwater depth (ft)first production
AppomattoxShell7400May 2019
King’s QuayMurphy3725April 2022
VitoShell4050Feb 2023
Argosbp4440April 2023
AnchorChevron4600Aug 2024
WhaleShell8600Jan 2025
ShenandoahBeacon5840July 2025
SalamancaLLOG6405Sept 2025

The efficiencies achieved with the simpler platform designs combined with the high pressure (>15,000 psi) technology developed over the past 2 decades is facilitatihg production from the highly prospective Paleogene (Wilcox) deepwater fans. (For those interested in learning more about the geology, see the excellent presentation by Dr. Mike Sweet, Univ. of Texas, that is embedded in this post.)

With bp’s commitment to Tiber, 3 new high-pressure projects, ala Chevron’s Anchor, are in the pipeline:

platformoperatorwater depth (ft)discovery datefirst production
Kaskidabp600020062029
SpartaShell470020122028
Tiberbp413020092030
All of the operators note the cost-saving similarities in their FPU designs. For example, Vito and Whale are very much the same despite the 4550′ difference in water depth.

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Based on BOEM and BSEE lease and well data for the past 10 years, LLOG’s Dome Patrol field appears to have reached first production in the shortest time for any new deepwater field. Less than 6.5 years after acquiring the Mississippi Canyon lease, LLOG began producing from a single Dome Patrol well (Mississippi Canyon Block 505) that is tied back to the Who Dat subsea infrastructure.

Lease No.Lease DateField Discovery DateFirst ProductionOperatorField NameWater Depth
G358277/1/20167/14/202012/15/2022LLOGDome Patrol3225′

Karoon Energy recently acquired a 30% interest in Dome Patrol as part of their Who Dat acquisition. Their presentation on that acquisition is informative.

Dome Patrol was the nickname for the outstanding linebacker corps of the New Orleans Saints during the late 1980s and early 1990s, and is thus consistent with the Who Dat theme.

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Jerry Boelte, LLOG founder and offshore energy leader, passed away last month in a single vehicle accident. Boelte, a New Orleans native and LSU petroleum engineering grad, turned LLOG into a major deepwater player in the Gulf of Mexico.

In 2023, LLOG was the 6th biggest oil producer in the Gulf of Mexico trailing only Shell, bp, Anadarko, Chevron, and Murphy. As a natural gas producer, LLOG ranked fifth ahead of major GoM operators like Chevron and Hess.

Boelte built LLOG into a company with a strong commitment to safety and environmental protection. In that regard, the company achieved BOE Honor Roll status in 2023 and 2022.

LLOG’s ‘Who Dat’ floating production system in 3100′ of water in Mississippi Canyon Block 547 has produced more than 100 million bbls of oil equivalent. More on ‘Who Dat.’

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BOE Honor Roll criteria:

  • Must average <0.3 incidents of noncompliance (INCs) per facility-inspection.
  • Must average <0.1 INCs per inspection-type. (Note that each facility-inspection may include multiple types of inspections (e.g. production, pipeline, pollution, Coast Guard, site security, etc). On average, each facility-inspection included 3.3 types of inspections in 2023. Here is a list of the types of inspections that may be performed.
  • Must operate at least 3 production platforms and have drilled at least one well (i.e. you need operational activity to demonstrate compliance and safety achievement).
  • May not have a disqualifying event (e.g. fatal or life-threatening incident, significant fire, major oil spill). Due to the extreme lag in updates to BSEE’s incident tables, district investigations and media reports are used to make this determination.
platforms2023 well starts2023 (10 mos.) oil prod. (million bbls)2023 (10 mos.) gas prod. (bcf)
Anadarko10116660
BP71110565
Cantium961056
Chevron8106739
Eni31613
Hess331836
LLOG1072535
Murphy744257
QuarterNorth911323
Shell2020141140

Also noteworthy:

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Karoon Energy, an Australian company, has entered the Gulf of Mexico in a big way by acquiring an interest in the Who Dat field (winner of BOE’s best field name award!) from LLOG. For more information on the acquisition, see Karoon’s slide at the end of this post. The full presentation is here.

To learn more about the cultural importance of ‘Who Dat,’ see the youtube clip below, or read this article. For more in-depth ‘Who dat’ history, this wiki page is quite good.

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Based on drilling contractor rig activity reports, the table below lists 19 deepwater MODUs under or soon to begin contracts in the GoM. (Further details are pasted at the end of this post.) Per the Valeris report, platform rigs are operating on bp’s Thunder Horse and Mad Dog platforms. Per the BSEE borehole file, Arena and Cantium continue to drill development wells on the GoM shelf.

Rig NameOperator
Deepwater TitanChevron
Deepwater AtlasBeacon
Deepwater PoseidonShell
Deepwater PontusShell
Deepwater ProteusShell
Deepwater Conquerornot disclosed
Deepwater ThalassaShell
Deepwater AsgardMurphy
Deepwater InvictusWoodside
Globetrotter IShell
Globetrotter IIShell
Faye KozackQuarterNorth
LLOG
Kosmos
Stanley LafosseMurphy
Valaris DS-18Chevron
Valaris DS-16Oxy
Ocean BlackHornetbp
Ocean Black Lionbp
Aurigabp
Velabp
Beacon

Excerpts from rig activity reports:

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The Honor Roll companies for 2022 (listed alphabetically) are Anadarko (Oxy), bp, Cantium, Chevron, Contango, Hess, LLOG, Murphy, and Shell.

Our criteria:

  • Must average <0.3 incidents of noncompliance (INCs) per facility-inspection.
  • Must average <0.1 INCs per inspection-type. (Note that each facility-inspection may include multiple types of inspections (e.g. production, pipeline, pollution, Coast Guard, site security, etc). On average, each facility-inspection included 3.25 types of inspections in 2022. Here is a list of the types of inspections that may be performed.)
  • Must operate at least 3 production platforms and have drilled at least one well (i.e. you need operational activity to demonstrate compliance and safety achievement).
  • May not have a disqualifying event (e.g. fatal or life-threatening incident, significant fire, major oil spill). Due to the extreme lag in updates to BSEE’s incident tables, investigation and news reports are used to make this determination.
  • Pacific and Alaska operations will be considered separately.
oil (million bbls)gas (BCF)
Shell145.8163.5
bp82.457.1
Chevron79.445.2
Anadarko59.650.8
Murphy28.145.5
LLOG19.634.3
Hess17.939
Cantium3.95.3
Contango0.023.5
2022 production through Oct.

Mid-Year 2022 review

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The September total reflects production from recent deepwater startups, including King’s Quay (Murphy) and Spruance (LLOG). Other new deepwater facilities should further boost GoM oil production next year as forecasted by BOEM (table below). Unfortunately, the BOEM forecast considerably overstates 2022 production and appears to be optimistic for the outyears. This is a significant concern given that US offshore leasing policy, as reflected in the 5 Year Plan, is naively focused on throttling long-term production. See the rather startling quote below:

BOEM’s short-term (20-year) production forecast for existing leases shows steady growth from 2022 through 2024 and declining thereafter (see Section 5.2.1). The long-term nature of OCS oil and gas development, such that production on a lease can continue for decades makes consideration of future climate pathways relevant to the Secretary’s determinations with respect to how the OCS leasing program best meets the Nation’s energy needs.

5 Year Leasing Program, p.3

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Was 2021 the low point? Hopefully that is the case, but consistent leasing is essential.

Looks like Woodside is now officially the GoM operator of record (was BHP prior to merger). Kudos to them.

Shell continues to be the GoM bellwether. There is no OCS program without them.

What’s up with BP and Chevron? Big declines from both.

US super-majors Exxon and ConocoPhillips remain out of the picture, both in terms of lease acquisition and exploration. Disappointing.

Tip of the hat to Hess, LLOG, Murphy, and Talos – independents committed to deepwater production.

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“The two-well subsea development is producing, in combination, approximately 16,000 barrels of oil per day and 13 million cubic feet of gas per day via a 14-mile subsea tieback to the EnVen-operated Lobster platform in EW 873. First production was achieved less than three years after the initial exploratory discovery well was drilled.” 

LLOG

The project owners (below) are all independent producers and private equity firms. Houston Energy, LLOG, Red Willow, EnVen, and Beacon were also among the high bidders in Lease Sale 257, which was vacated by a questionable court decision that the Federal government chose not to appeal.

The companies responsible for these important projects (see “simpler, safer, greener”) that have or will soon initiate production were also active bidders at Lease Sale 257. The absence of leasing has thus seriously handicapped the companies most responsible for the production surge to over 2 million BOPD in 2019 and for sustaining the current Gulf production rate of 1.7 million BOPD.

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