LLOG Exploration Co. reports the achievement of several significant milestones marking major steps forward in the construction of the Salamanca FPU and its related field development project.
The company also reports that initial well operations at both Leon and Castile have been successfully completed.
LLOG is the operator of the Salamanca FPU, as well as the Leon and Castile discoveries with Repsol and O.G. Oil & Gas as non-operating working interest owners.
The Salamanca project involves the refurbishment of a former Gulf of Mexico (GoM) production facility, Independence Hub, which is being transformed into an FPU with a capacity of 60,000 bbl/d of oil and 40 MMcf/d of natural gas. LLOG says this approach has significantly minimized environmental impact by reusing existing infrastructure and reducing construction cycle time, ultimately enhancing economic returns.
The hull refurbishment was completed at the Seatrium facility in Brownsville, Texas, and delivered to Kiewit’s yard in Ingleside, Texas, on Oct. 17, 2024, marking a critical milestone in the project’s timeline.
In early November 2024, the new topside equipment and deck was successfully rejoined to the hull, and final outfitting of the FPU will be completed in early 2025. LLOG says this achievement brings it closer to the project’s mid-2025 production target and underscores its commitment to sustainable energy solutions.
LLOG says all of the initial wells to support the Salamanca FPU have been successfully drilled and cased. This includes discovery wells drilled at Castile and Leon, with additional successful development wells drilled in 2023 and 2024. The final well finished drilling in September 2024 at the Leon Development (Keathley Canyon 686 #4), with better than expected results, encountering greater than 1,000 ft of high-quality oil-bearing sands, LLOG says. The facility will be located in Keathley Canyon 689 in about 6,400 ft of water.
LLOG entered the Leon field as the operator in 2019 through an agreement with Repsol that also brought the global multi-energy company into the LLOG-operated Castile field, with the goal to accelerate plans and optimize the economics of developing both discoveries.
LLOG COO Eric Zimmermann said, “The unique aspect of the Salamanca facility is that the FPU is the first refurbishment of a GoM facility that was in production and being brought into commerce as a producing asset again. By modifying a previously built production unit compared with constructing a new facility, we are able to significantly reduce the time to bring these discoveries online.
“Also, the project has a significantly positive environmental impact as it reuses an existing unit compared with abandonment of the unit, while also accomplishing approximately a 70% reduction in emissions impact compared to the construction of a new unit.”
Zimmermann continued, “As a Louisiana-based company, the other aspect of the project that brings us pride is the major construction for this project has been undertaken in shipyards and construction yards in Texas and Louisiana versus occurring internationally. Our ongoing success and achievements in delivering complex deepwater projects reflect the dedication and expertise of our outstanding team. We look forward to continuing our progress and contributing to the energy needs of the nation.”
