By the OGJ Online Staff
HOUSTON, Feb. 21 -- BP PLC and Nexen Petroleum USA Inc. signed an agreement Thursday outlining terms of the development of the Aspen deepwater discovery on Green Canyon Block 243 about 150 miles south-southwest of New Orleans in the Gulf of Mexico. The discovery lies in 3,000 ft of water.
Under the agreement, Nexen will increase its holding in the field to 60% from 20% and pay incremental development costs for Aspen, which is being fast-tracked to production (OGJ, Nov. 19, 2001, p. 36). The field lies 5 miles from BP-operated Troika field. BP will operate the Aspen project.
Nexen estimates the field's gross reserves to be 40 million boe on a proved basis. On a total resource basis, Aspen could hold as much as 70 million boe with 15% being gas. "Aspen has potential of up to 150 million [boe] that could be established with additional drilling," Nexen said.
The early production system, which will cost $194 million, comprises drilling, completing, and tying back two subsea wells to a host platform. Development is slated to begin in the second quarter, with production expected to start in the fourth quarter.