Production begins at Na Kika in Gulf of Mexico

Dec. 9, 2003
Shell Exploration & Production Co. and BP America Inc. have first production at the Na Kika project in Mississippi Canyon block 474, 140 mi southeast of New Orleans in the deepwater Gulf of Mexico. Initial production from the first well in the development will exceed 100 MMcf/d.

Shell Exploration & Production Co. and BP America Inc. have first production at the Na Kika project in Mississippi Canyon block 474, 140 mi southeast of New Orleans in the deepwater Gulf of Mexico. Initial production from the first well in the development will exceed 100 MMcf/d.

Production will continue to increase over the next several months as additional new wells come online.

Na Kika consists of five independent fields – Kepler, Ariel, Fourier, Herschel, and East Anstey – each of which would be uneconomic to develop on its own. Shell and BP have developed the fields with the installation of a centrally located, permanently moored, semisubmersible floating production facility – the first time a hub-type system has been used to develop a group of small to medium size fields.

The Na Kika semisubmersible production facility is moored in 6,300 ft of water. The individual wells are in water depths from 5,800 to 7,000 ft.

The Kepler, Ariel, and Herschel fields are primarily oil, while the Fourier and East Anstey fields are primarily gas.

A sixth field, Coulomb, which is 100% owned by Shell and in 7,600 ft of water, will be tied back to the Na Kika host facility as production capacity becomes available.

At peak production, Na Kika is expected to produce 110,000 b/d and 425 MMCf/d of natural gas. Ultimate recovery from Na Kika will be 300 MMboe.

BP and Shell also started up the 75-mi Na Kika segment of the Okeanos Gas Gathering System from Na Kika to Main Pass block 260, where the gas will be transported to various onshore markets via the BP/Shell Destin pipeline system. Okeanos will transport gas from deepwater discoveries in Mississippi Canyon and the eastern Gulf of Mexico. Shell built the Na Kika segment of the Okeanos pipeline system, but BP operates it.

"We are very excited about Na Kika start-up. The facility adds significant production to our deepwater portfolio and is purpose-built for further subsea tie-backs from future discoveries in the area," Kenny Lang, vice president of BP's deepwater production business unit, said. "We believe the deepwater Gulf of Mexico offers tremendous opportunities for BP."

Shell is the operator for the development phase of the Na Kika project, responsible for the design, fabrication, and installation of the floating host facility and subsea production system, as well as the drilling and completion of the ten development wells. BP is the production operator for the project, responsible for the operation of the host facility and the satellite subsea fields. Each company holds 50% of the project.

12/09/03