Shell to develop three more deepwater fields

Shell's Deepwater Development Projects [215,824 bytes]

Shell Exploration & Production Co. will expand its production in the Gulf of Mexico by developing three new deepwater oil and gas discoveries.

The projects-Angus, Europa, and Macaroni-increase to 14 the number of deepwater developments in which Shell has a working interest.

The three fields hold combined reserves of more than 300 million boe, says Shell. All three will be developed with subsea tie-backs to existing platforms.

Rick Pattarozzi, president and CEO of Shell Deepwater Development Inc. (SDDI), said, "With these projects, we have been able to capitalize on our growing infrastructure in the deep water to allow cost-effective development of smaller discoveries to shorten the time from start of development to first production."

Shell owns about 20% of leased Gulf of Mexico acreage in water depths of 1,500 ft or more. The company has used a number of subsea production systems in the deeper waters of the gulf. These include Tahoe, Popeye, Rocky, Mars, Ram-Powell, and Mensa.

Shell's net daily production from the Gulf of Mexico averages 227,000 b/d of oil and 1.3 bcfd of gas.

Macaroni

Macaroni was discovered in late 1995. Shell drilled two appraisal wells on the prospect in 1996 and 1997.

Macaroni, owned 100% by SDDI, lies in 3,700 ft of water on Garden Banks Block 602.

"The Macaroni subsea system will consist of three subsea satellite wells clustered around a four-well subsea manifold," said Shell. "Production will flow through dual 6-in. and 10-in. pipe-in-pipe flow lines to the Auger TLP (tension leg platform) for processing."

The Auger TLP is 12 miles away on Garden Banks Block 426.

Shell will begin drilling the Macaroni development wells this summer. The target reserves are Pliocene sands at depths of 20,500-24,000 ft subsea. Total development costs, excluding lease costs ($176,000) and exploration expenditures, will be about $270 million. Shell expects first oil from Macaroni in mid-1999. Production will peak at 35,000 b/d of oil and 65 MMcfd of gas late that year. Shell estimates ultimate recovery at 78 million boe.

Angus

Angus field, on Green Canyon Block 113, is owned 80% by operator SDDI and 20% by Marathon Oil Co. Shell will develop Angus with a four-well subsea system in about 2,000 ft of water.

"Discussions are currently under way with Marathon to tie back the wells to Shell's Bullwinkle fixed platform on Green Canyon Block 65, about 12 miles away," said Shell. "Talks are also being conducted to tie back the wells on Marathon's Green Canyon Block 112, where Marathon has a 65% working interest and Shell a 35% working interest, to Bullwinkle."

The proposed subsea system for Angus would consist of four wells connected to an eight-slot manifold. The wells would be tied to Bullwinkle via two 8-in., buried, multiphase flow lines, configured in a piggable loop.

Development drilling will begin in mid-1998. Production is slated to start in second quarter 1999 and peak at 40,000 b/d of oil and 60 MMcfd of gas by the end of that year.

The target reserves are Plio-Pleistocene sands at about 15,000 ft subsea. The average net pay thickness is 117 ft. Total development costs will be about $200 million, excluding lease costs of about $1.65 million. Ultimate recovery from Angus is estimated at about 64 million boe, says Shell.

Europa

The third of the new developments, Europa, is on Mississippi Canyon Blocks 934, 935, 890, and 891 in about 3,900 ft of water. It is owned 66% by operator SDDI, 33% by BP Exploration Inc., and 1% by Conoco Inc.

Europa was discovered in 1994. Two sidetracks and one appraisal well were drilled subsequently. Europa, which contains mostly oil, will be developed with four subsea wells tied back to Shell's Mars TLP on Mississippi Canyon Block 807, about 20 miles away. The subsea system will be capable of accommodating eight wells, although the first phase will involve drilling only four wells. Two to four more wells will be drilled later, as needed to maintain flow rate and optimize ultimate recovery.

Target reserves are in multiple upper Miocene sands at 16,000-19,000 ft. Average net pay thickness is 125 ft. Europa production is slated to start early in 2000 and peak at 60,000 b/d of oil and 45 MMcfd of gas by early 2001. Total development costs for Europa will be about $500 million, says Shell, excluding lease costs of $4.62 million.