OPERATORS BOOST GULF OF MEXICO PRODUCTION

Two operators are ramping up oil and gas production in the Gulf of Mexico off Louisiana. Shell Offshore Inc. (SOI) boosted its Gulf of Mexico production, mainly with flow from two deepwater developments. SOI's gulf-wide production in October averaged 150,000 b/d of oil and 1 bcfd of gas. In 1990, the company's production averaged 110,000 b/d and 945 MMcfd. In addition, Freeport-McMoRan Resource Partners LP, New Orleans, started oil production from Main Pass Block 299 sulfur/oil deposit.

Nov. 25, 1991

3 min read

Two operators are ramping up oil and gas production in the Gulf of Mexico off Louisiana.

Shell Offshore Inc. (SOI) boosted its Gulf of Mexico production, mainly with flow from two deepwater developments.

SOI's gulf-wide production in October averaged 150,000 b/d of oil and 1 bcfd of gas. In 1990, the company's production averaged 110,000 b/d and 945 MMcfd.

In addition, Freeport-McMoRan Resource Partners LP, New Orleans, started oil production from Main Pass Block 299 sulfur/oil deposit.

Flow amounts to about 15,000 b/d from the first of two production platforms planned for the block. Production from this platform is to be 20,000-25,000 b/d when all its wells are on stream.

When the Main Pass project's second production platform goes on line in February 1992, total flow rate for the field could reach 40,00050,000 b/d.

SOI PRODUCTION

Most of SOI's production increase resulted from:

Start of flow through permanent facilities on Bullwinkle platform in 1,350 ft of water on Green Canyon Block 65.
Redevelopment of Cognac field in 1,025 ft of water on Mississippi Canyon Block 194.

Bullwinkle's October production averaged 55,000 b/d of oil and 75 MMcfd of gas. Bullwinkle production rates reached as much as 57,000 b/d.

SOI began Bullwinkle production in 1989 through Boxer platform, about 10 miles northwest on Green Canyon Block 19. Bullwinkle oil and gas moved to Boxer through a subsea pipeline while drilling continued from Bullwinkle.

SOI has drilled 25 wells from Bullwinkle platform--20 producers and five water injection wells.

When the company earlier this year shut in production to tie in Bullwinkle platform's permanent production facilities, Bullwinkle flow through Boxer was averaging 20,000 b/d of oil and 27 MMcfd of gas.

Production has increased steadily since August, although only 16 wells are producing.

Cognac production in October averaged 27,000 b/d of oil and 53 MMcfd of gas. SOI's redevelopment program, in which 20 wells were drilled into new reservoirs, increased Cognac production by 17,000 b/d of oil and 17 MMcfd of gas.

MAIN PASS BLOCK 299

Freeport-McMoRan said Main Pass Block 299 is among the biggest oil fields on production in the gulf. The company expects the field to become the second largest oil producing field in the gulf by early 1992.

Gas production, which began late last month, averages 4 MMcfd.

Freeport-McMoRan expects to begin sulfur production in mid-1992, reaching the project's design capacity of 2 million long tons/year by the end of 1993.

The Main Pass Block 299 deposit holds proved recoverable reserves of 39.4 million bbl of oil, 7.2 bcf of gas, and 67 million long tons of sulfur.

Recoverable oil and gas reserves could increase after more wells have been drilled and a production history is established, Freeport-McMoRan said.

The oil and gas reserves were found by a Freeport-McMoRan joint venture during the drilling of sulfur exploration wells. They line in the same caprock reservoir as sulfur reserves, which were discovered in 1988 and defined early in 1989.

Freeport-McMoRan expects codevelopment of oil, gas, and sulfur reserves to produce significant synergies and efficiencies that will cut costs and help increase earnings.

The company holds a 58.3% in the project. Its partners are IMC Fertilizer Inc. 25% and Homestake Sulphur Co. 16.7%.