COVINGTON, La., May 04, 2022 (GLOBE NEWSWIRE) -- LLOG Exploration Company, L.L.C. (“LLOG” or “the Company”), a privately-owned exploration and production company focused on the deepwater Gulf of Mexico (“GOM”), today announced the development of the Salamanca production facility, which is comprised of a uniquely designed Floating Production Unit (“FPU”) that will be created from the refurbishment of a former GOM production facility that was previously decommissioned. The FPU will serve as the collection point for production from the joint development of the Leon discovery located in the deepwater GOM in Keathley Canyon (“KC”) blocks 642, 643, 686 and 687 as well as from the Castile discovery in KC 736. LLOG will operate the development, and its partners include Repsol E&P USA Inc. and Beacon Offshore Energy LLC. The facility will be located on KC 689 in approximately 6,400 feet of water.
Both discoveries are expected to be jointly developed through a total of three subsea wells at initial production that will be tied back to the Salamanca FPU. Two of the initial three development wells are planned for the Leon field and one for the Castile field. Initial production from the joint development is expected mid-2025.
The FPU is being refurbished to have a capacity of 60,000 barrels of oil per day and 40 million cubic feet of natural gas per day. By modifying a previously-built production unit, the time and cost to refurbish the unit are greatly reduced compared with construction of a new facility. As important, the project has a significantly positive Environmental, Social and Governance (“ESG”) 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. All of the major topsides repurposing and modifications will be done in the United States. Regulatory approvals required to proceed with the development have been received. The FPU is being financed through an ownership arrangement with investment vehicles managed by ArcLight Capital Partners, LLC (“ArcLight”), a leading private equity firm based in Boston, that is focused on energy and energy transition infrastructure.
Leon is a discovery drilled by Repsol in late 2014 on KC 642 and is located about 250 miles southwest of New Orleans in approximately 6,000 feet of water. The discovery well was drilled to a total depth of about 32,000 feet and encountered nearly 700 feet of high quality net oil pay in multiple sands in the Lower Tertiary where LLOG has significant experience from past drilling and development in the GOM.
The Castile discovery was drilled on KC 736 in over 6,500 feet of water to a total of over 31,000 feet and encountered nearly 400 feet of high quality net oil pay, also in the Lower Tertiary.
Philip LeJeune, President and CEO of LLOG, commented, “Our ability to execute on our strategy of developing deepwater projects in areas of prolific regions that can be drilled, developed and placed on production safely, efficiently, and economically is key to our ongoing success. We are excited with this joint development of discoveries. By modifying a previously-built production unit compared with constructing a new facility, we are able to reduce significantly the time and cost to bring these discoveries online. Just as important as strong economic returns, this innovative FPU project has a significant positive ESG impact. We are repurposing an existing unit which reduces the emissions impact compared to the construction of a new unit by approximately 70%. We are pleased to be able to do the refurbishing of the FPU fully in the United States, utilizing local labor. This development will add a significant new source of needed domestic oil and natural gas production when it comes online. We remain focused on operational excellence and continue to build on the many successes that we have achieved in the deepwater GOM.”
About LLOG
LLOG Exploration Company L.L.C. is a privately-owned exploration and production company in the United States. LLOG’s corporate headquarters is in Covington, Louisiana and the Company has an office in Houston, Texas. For additional information, visit the Company’s website at www.llog.com.
About Repsol
Repsol is a global multi-energy company that is leading the energy transition with its ambition of achieving zero net emissions by 2050. Present throughout the energy value chain, the company employs 24,000 people worldwide and distributes its products to around 24 million customers. The company prioritizes value over volume in exploration and production and concentrates its activities in key geographical areas, with short-cycle projects and attractive returns capable of generating instant cash flow. This business is a leader in emissions reduction in the sector, with the goal of reducing its carbon intensity by 75% in the 2021-2025 period. The US Gulf of Mexico is a core area for Repsol, and Leon / Castile is one of the 14 key upstream projects in its 2021-2025 Strategic Plan.
About ArcLight
ArcLight is a leading private equity firm focused on energy, infrastructure and energy transition with a successful long-term track record. Founded in 2001, the firm helped pioneer an asset-based approach to investing across the power, renewables, infrastructure and broader energy value chain. Since then, ArcLight has invested approximately $26 billion in 116 transactions, including over $10 billion of equity capital into the electrification segment, which includes power, transmission, renewable infrastructure and energy transition investments. Through its large infrastructure portfolio, ArcLight is focused on providing decarbonizing energy solutions with a strong ESG focus. Based in Boston, the firm’s investment team employs a value-added investment approach that benefits from its dedicated in-house technical, operational, and commercial specialists and partners, as well as the firm’s approximately 1,500-person asset management affiliate. More information about ArcLight can be found at www.arclight.com.
Contact: Eric Zimmermann 985-801-4300
