LLOG Exploration Co. LLC has let a contract to Seadrill Ltd. for the West Neptune drilling rig to drill and complete two wells as part of development of the Buckskin project in the deepwater Gulf of Mexico.
The rig will move to the Buckskin location in the fourth quarter. LLOG has also ordered several long-lead items for topsides and remains on track to start production in the second half of 2019.
The large-scale deepwater development will be a 6-mile subsea tieback to the Anadarko Petroleum Corp.-operated Lucius Spar. The project will use equipment rated to 15,000 psi and utilize dual 8-in. flowlines with riser base gas lift.
Buckskin is on Keathley Canyon Blocks 785, 828, 829, 830, 871, and 872 in 6,800 ft of water. LLOG estimates Buckskin has 5 billion bbl of oil in place.
The Keathley Canyon 872 No. 1 discovery well at Buckskin was drilled by Repsol in 2009 to a depth of 29,404 ft and encountered 400 ft of net pay in the Upper and Lower Wilcox formations. Three subsequent appraisal wells drilled in Keathley Canyon 785 and 829 encountered an average of 375 ft of high quality oil pay in the Upper Wilcox.
Affiliates of LLOG Exploration own 31.3% working interest in the project, and LLOG Exploration Offshore LLC has been named operator. Repsol SA and Samson Offshore BSM LLC each own 22.5% interest; Beacon Offshore Energy Buckskin LLC, an affiliate of Beacon Offshore Energy LLC, holds 18.7%; and Navitas Buckskin US LLC, an affiliate of Navitas Petroleum LP, owns 5%.
