Shell Exploration & Production Co. (SEPCO) said Wednesday that it will develop its deepwater Gulf of Mexico discoveries Oregano and Serrano via a subsea production system tied back to the Auger tension leg platform. SEPCO has had plans for years to use some of its deepwater developments as hubs for the production of still deeper reserves; Oregano and Serrano are examples. Total development costs for the two projects are $250 million, excluding lease costs.
"�These development projects advance exciting areas of new technology to significantly reduce costs and enhance flow assurance," said Dave Lawrence, Sepco's vice-president of exploration and development. "Although Serrano and Oregano are separate fields, the development activities are being executed through a single integrated plan.
"At each field, Shell plans to initially complete two wells, set a flowline sled, and install a single 6-in. by 10-in. pipe-in-pipe insulated flowline, which will tie back to Shell's Auger TLP."
Oregano, which holds most oil reserves, is in 3,400 ft of water on Garden Banks Block 559. Serrano, which holds mostly gas, is in 3,400 ft of water on Garden Banks Block 516. The Auger TLP is in 2,860 ft of water on Garden Banks Block 426.
SEPCO expects to 50 million boe from each field. Production is slated to begin at Serrano in September 2001, and at Oregano in December 2001. Peak daily production rates from Serrano and Oregano are expected to reach 150 MMcfd of gas and 20,000 b/d of oil, respectively.
Shell said these are its 14th and 15th deepwater projects in the Gulf of Mexico.