By OGJ editors
HOUSTON, June 14 -- BHP Billiton Ltd. has received approval of its development plan for deepwater Shenzi oil and gas field 120 miles off Louisiana.
The field, covering Green Canyon Blocks 609, 610, 653, and 654 in water 4,300 ft deep, will be developed initially with seven producing wells. Full field development, expected to involve as many as 15 producing wells and possibly water injection, is estimated to cost a gross $4.4 billion through 2015.
Recoverable reserves are estimated at 350-400 million boe. Additional potential reserves will be targeted for follow-up development.
Shenzi will produce through a tension-leg platform (TLP) with capacities of 100,000 b/d of oil and 50 MMcfd of gas.
Production will start by midyear 2009 from seven predrilled wells completed subsea and tied back to the TLP.
The oil will move through a newbuild pipeline to Ship Shoal 332 and the gas via a newbuild lateral into a connection in the Cleopatra trunklines, then on to Ship Shoal 332.
BHP Billiton has a 44% interest in the project. BP PLC and Amerada Hess Corp. have 28% each.
