LLOG Bluewater (LLOG) has installed its Delta House floating production system (FPS) in Mississippi Canyon 254, in the Gulf of Mexico.
LLOG Bluewater is a joint venture between LLOG Exploration L.L.C. and Blackstone Energy Partners and its affiliates.
Delta House FPS reached its location in mid-September 2014. It is located 130 miles southeast of New Orleans in 4500 feet of water. LLOG, as operator of the facility, built the hull of the FPS at Hyundai Heavy Industry’s yard in Ulsan, South Korea and the topsides at Kiewit in Ingleside, Texas. ArcLight is the majority owner of the infrastructure consisting of the FPS and the lateral export pipelines. Other owners in the infrastructure include LLOG, Calypso Exploration, LLC, Red Willow Offshore, LLC, and the entities managed by Ridgewood Energy (which includes Riverstone designated affiliates).
The FPS is designed for peaking capacity of 100,000 barrels of oil per day and 240 million cubic feet of gas per day. At this point in the project, most of the infield and export lines and subsea equipment (trees, manifolds, umbilical termination assemblies) have been installed, LLOG said in the release.
Lead time from sanction to installation was only 22 months, and first production from the facility is expected in the first half of 2015, LLOG says. The facility will serve as host for a series of LLOG operated fields in the region.
New discovery at ‘Otis’
LLOG and its partner Ridgewood Energy have drilled a successful exploration test at the Mississippi Canyon 79 “Otis” prospect. The initial exploratory well encountered more than 70 feet of net hydrocarbons, and a subsequent appraisal sidetrack confirmed the discovery. The Miocene target is apparently a high‐condensate yield gas reservoir in a high‐quality reservoir sand. LLOG owns 70% working interest in the field. LLOG has begun evaluating regional hosts, including the Delta House FPS, regarding subsea development options for the discovery.
LLOG has also recently installed production facilities at its Powerball development at South Timbalier 231/232. LLOG and its partner, Walter Oil and Gas Corporation expect production from the field during the fourth quarter of 2014. The South Timbalier 231#1 encountered 92’ of net gas pay and the South Timbalier 232#1 encountered 190’ of net gas pay. LLOG owns 75% working interest in the field.
Biddy Ball field
In the second quarter of 2014, LLOG initiated production from its Biddy Ball field at Mississippi Canyon 705 in approximately 1,000 feet of water. Biddy Ball joined Mississippi Canyon 751 (Goose) and Mississippi Canyon 707 in a three‐well subsea system that is 100% owned by LLOG Bluewater and LLOG Exploration.
“2014 continues to be a robust year for LLOG Exploration,” says Scott Gutterman, President and CEO of LLOG Exploration.
“With the exploration success at Otis and installation of the Delta House facility, we are well‐positioned to continue to grow our production and reserve base. LLOG’s ability to execute major projects like Delta House and Who Dat within three years, at a cost significantly below industry, and with an excellent safety record provides LLOG a significant competitive advantage. Having access to the existing infrastructure of these facilities will also provide a competitive advantage in the Mississippi Canyon area.
“With Delta House coming on‐line in the first half of next year, the new well at Biddy Ball, and expected first production at Powerball during the fourth quarter, LLOG is poised to see a tremendous production uplift in the very near future.”