GULF OF MEXICO

David Paganie • Houston

BP confirms Kaskida field extension

An appraisal well to test a western extension of the Kaskida field has confirmed oil in Lower Tertiary reservoirs 5 mi (8 km) west of the Kaskida discovery well, according to operator BP. The well, drilled to TD of 32,500 ft (9,906 m), is in Keathley Canyon block 291.

Appraisal activities will continue with a wide-azimuth, towed-streamer seismic acquisition survey in early 2010 and a well test in 2011. Prior to the field extension confirmation, Kaskida was estimated to hold 3 Bboe in place.

Meanwhile, Nexen is using the recently deliveredEnsco 8501 to define its Knotty Head discovery. The well spudded in October with results expected in 2Q 2010.

Nexen believes the appraisal well will allow sufficient information for the joint venture partners to agree on a development plan going forward, Marvin Romanow, Nexen CEO, said in a conference call. One development scenario under consideration is an early production system for a number of subsea wells tied back to an existing platform in the vicinity. The other option is full field development immediately with water injection. First production is expected post-2014.

Mariner makes discovery, acquires another

Mariner Energy has made a discovery at its Wide Berth prospect in Green Canyon block 490. The discovery well encountered approximately 130 ft (40 m) of net pay. The company also reports it has acquired from Anadarko a 50% working interest in the Balboa discovery on East Breaks 597 in 3,300 ft (1,006 m) of water. Field development is via one-well, 6-mi (10-km) tieback to the Boomvang platform in East Breaks block 624. First production is expected in 4Q 2010.

Mariner’s Balboa acquisition is part of an eight-block deepwater acreage trade with Anadarko in the Heidelberg area and a farm-in to the company’s Lucius prospect in Keathley Canyon block 875 in 7,500 ft (2,286 m) of water, which is currently drilling withEnsco 8500.

BHP, partners find more pay in Shenzi

BHP Billiton, Repsol, and Hess Corp. have made two new finds in the Shenzi field. In addition to a new pay found in the existing G104 well, the partners found oil in the Shenzi-8 well.

The Shenzi G104 well, drilled to a depth of 25,605 ft (7,804 m), encountered a total of 555 ft (169 m) of net oil pay, the companies report. The well began producing in September, and further evaluation is under way to assess future development potential of the shallower intervals.

In addition, the Shenzi-8 appraisal well, drilled to 25,904 ft (7,896 m) TD, encountered approximately 100 ft (30 m) of net oil pay in the Miocene age reservoirs, opening additional potential to the Shenzi North Flank. These are the same reservoirs that were developed successfully, and currently are producing, in the Shenzi South Flank.

The platform already installed at Shenzi is producing in excess of 120,000 b/d of oil, 20% more than the facility’s design capacity and in excess of production expectations, the companies report.

BHP Billiton operates the consortium with a 44% stake. Hess Corp. and Repsol each hold a 28% in the Shenzi development.

Chevron awards Big Foot FEED

Chevron has awarded KBR a contract for the front-end engineering and design (FEED) of the topsides for the proposed Big Foot development facility slated for installation in 5,300 ft (1,615 m) of water on Walker Ridge block 29, 35 mi (56 km) south of Chevron’s producing Tahiti field.

Chevron plans to develop Big Foot with a dry-tree floating drilling and production facility. The hull is a proposed extended tension-leg platform (ETLP). Topside oil and gas processing facilities will include inlet separation; gas compression; dehydration and export; oil treatment and export pumping; produced water treatment; and utility systems. Initial facility installation will include water injection facilities to enable reservoir pressure maintenance early in the life of the field.

KBR will provide engineering and project management services to develop the process design; specify the required equipment; layout, modularize, and integrate the decks; perform the necessary structural analyses; and provide the electrical power generation and distribution system designed to support the platform and the downhole electrical submersible pump. KBR also will assist in planning subsequent phases of development.

Longhorn flows first gas

Production has begun from the Eni-operated Longhorn gas field. Initial gas production is 200 MMcf/d from four subsea wells connected to the Eni-operated Corral platform.

The platform is a conventional jacket structure in Mississippi Canyon block 365 about 20 mi (32 km) northwest of the field in 620 ft (189 m) of water. It has been fitted with a newly built production and compression facility with a processing capacity of 250 MMcf/d of gas and 6,000 b/d of oil. The platform also is being outfitted to increase liquids production capacity to 12,000 b/d to accommodate the future tie-in of the Eni-operated Appaloosa oil field which is currently under development. First production is anticipated in 2010.

Meanwhile, production has started from the W&T-operated Daniel Boone field in Green Canyon block 646 at a gross rate of 6,000 b/d of oil and 5.7 MMcf/d of natural gas. The well is connected via 22-mi (35-km) subsea tieback to a third-party operated platform in Green Canyon block 338. The company also brought online its discovery in Viosca Knoll block 821.

First FPSO for US GoM on track

Keppel Shipyard says it is on track to deliver the first FPSO for the US Gulf of Mexico to BW Pioneer Ltd. The vessel, namedBW Pioneer, will be turret moored in a water depth of about 2,600 m (8,530 ft), the deepest for an FPSO, the company says. Petrobras America has leased the FPSO for the Cascade and Chinook fields. First production is scheduled for 1Q 2010.