LLOG taking over Shenandoah discovery

U.S.-based LLOG Exploration Offshore (LLOG) has been named operator of the Shenandoah discovery in the U.S. Gulf of Mexico and is now considering a multi-well development with an FPS. 

Shenandoah was discovered in 2011 with Anadarko Petroleum Corporation as the operator. Since the initial discovery, six wells with multiple sidetracks have been drilled.

LLOG said on Thursday that its affiliates, as well as affiliates of Navitas Petroleum US and Beacon Offshore Energy, have agreed to acquire a 70% working interest in the Shenandoah Unit covering Walker Ridge Blocks 51, 52 and the north half of 53 in the deepwater Gulf of Mexico.

Venari Resources will increase its working interest from 17% to 30%, LLOg added.

LLOG has submitted a request for suspension of production (SOP) with the Bureau of Safety and Environmental Enforcement (BSEE).

Scott Gutterman, LLOG’s President and Chief Executive Officer commented, “We are very pleased to be named operator of the Shenandoah unit and participate in the development of this large discovery which we believe has meaningful upside potential. We envision a multi-well, multistage development, including a new floating production system (FPS).

“We believe our commitment to safety, proven history of efficient operations, and nearly 20 years of Deepwater GOM experience will allow us to safely and effectively operate the Shenandoah unit. Our strong track record of success should allow us to efficiently develop this 100 to 400 million barrels of oil equivalent discovery and add significant value to all of our partners.”

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