LLOG Exploration Company, a privately-owned exploration and production company, is nearing first oil production from the Salamanca deep-water project in the US GOM, as it prepares for the deployment of the Salamanca floating production unit (FPU).
The FPU is undergoing refurbishment, which is expected to be completed soon. The refurbishment entails the transformation of a former GOM production facility into an FPU capable of processing 60,000 barrels of oil and 40 million cubic feet of natural gas per day.
This refurbishment approach is noted for its environmental benefits, repurposing existing infrastructure to reduce both time and impact, thereby enhancing economic returns.
The Salamanca FPU is the first GOM facility refurbishment to re-enter service as a producing asset.
Once refurbished, it will be used to extract and process oil from the deep-water site.
The project involves the development of the Leon and Castille oilfields, with subsea pipelines connecting to the Salamanca FPU. ABL won a contract to provide marine warranty survey (MWS) services for the project in March 2024.
The hull's refurbishment was completed at Seatrium in Brownsville, Texas, followed by transportation to Kiewit's yard in Ingleside, Texas, on 17 October 2024.
The new topside equipment and deck was rejoined to the hull in early November 2024, with final outfitting set for early 2025. This positions LLOG to meet its mid-2025 production goal.
The initial wells required for the Salamanca FPU are drilled and cased, including discovery wells at Castile and Leon, with additional successful development wells completed in 2023 and 2024.
Initial well operations at the Leon and Castile fields, where LLOG serves as the operator with Repsol and O.G. Oil & Gas as non-operating working interest owners, have been completed.
The final well, drilled at the Leon Development (Keathley Canyon 686 #4) in September 2024, yielded results that surpassed expectations, revealing more than 1,000ft of high-quality oil-bearing sands.
The FPU will be stationed in Keathley Canyon 689 in waters approximately 6,400ft deep.
LLOG's involvement in the Leon field began in 2019 following an agreement with Repsol, which also integrated the global energy company into the LLOG-operated Castile field. This partnership aims to expedite development plans and optimise the economic viability of both fields.
LLOG chief operating officer Eric Zimmermann said: “LLOG has a long history of developing prolific projects in the GOM safely, efficiently and economically. We are pleased to be progressing another world-class project and to have reached several important milestones while also optimising financial flexibility through securing financing for the Salamanca project.
“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 added: “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.”
The company expanded its presence in the GOM by acquiring 41 deep-water blocks in July 2024.
