By OGJ editors
HOUSTON, July 12 -- Repsol YPF SA agreed to pay BP PLC $2.15 billion for a 28% interest in Shenzi oil field in the deepwater Green Canyon area of the Gulf of Mexico.
The field has estimated proved and probable reserves of 350-400 million bbl for the initial development phase. Production is expected to start in mid-2009 at a gross rate of 100,000 b/d.
Repsol YPF has identified possible reserves that could be developed through shallower reservoirs, improved performance, and water injection. These reserves could boost reserves of the field's south flank to 500 million boe, the company said.
Additional exploration of the northern flank is expected in the fourth quarter.
BHP Billiton is the operator with 44% interest. Another partner, besides Repsol YPF, is Amerada Hess Corp. with 28% interest.