Neptune starts oil, gas production in Gulf of Mexico

BHP Billiton Ltd. and its partners in the Neptune oil and gas development in the deepwater Gulf of Mexico reported the start of production.

Jul 7th, 2008

By OGJ editors
HOUSTON, July 7 -- BHP Billiton Ltd. and its partners in the Neptune oil and gas development in the deepwater Gulf of Mexico reported the start of production. Neptune, which lies 120 miles off Louisiana, is being developed using a tension-leg platform installed on Green Canyon Block 613 in 4,250 ft of water.

The TLP facility's design capacity is 50,000 b/d of oil and 50 MMcfd of gas. The facility had recently undergone remediation to strengthen components inside the hull's pontoons, Neptune partner Marathon Oil Corp. said.

Neptune field comprises five blocks: Atwater Valley blocks 573, 574, 575, 617, and 618. Water depths range 4,200-6,500 ft. Crude oil from Neptune is transported via the Caesar pipeline, while natural gas is exported via the Cleopatra pipeline.

SBM Atlantia Inc. installed the TLP's 5,900-ton hull last year (OGJ, Aug. 6, 2007, Newsletter).

Field development includes six initial subsea wells tied back to the TLP. Further development wells are expected to be drilled after interpretation of new seismic data, which will be obtained in this year's second half.

Neptune partners are operator BHP Billiton Ltd. 35%, Marathon 30%, Woodside Energy (USA) Inc. 20%, and Repsol-YPF SA unit Maxus (US) Exploration Co. 15%.

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