Buckskin: Repsol and partners begin oil production in U.S Gulf of Mexico deepwater projects

Buckskin Repsol

Repsol and LLOC Exploration Offshore announced the start of oil production in Buckskin, a site located in the deepwaters of the Gulf of Mexico, in Keathley Canyon.

The production thus begins months in advanced of the original dates and with a 60% reduction in cost from the original project. The production rate at Buckskin is anticipated to reach 30,000 barrels of oil per day.

According to Repsol, this project is an example in terms of efficiency and production startup, highlighting this was possible thanks to the technology and optimization measures applied, as well as the synergy between the partners.

An achievement for Repsol

This is a significant achievement for the efficiency measures adopted in Repsol’s Upstream area. Said measures are based on combining cutting-edge technology, financial discipline, and greater standardization of processes in hydrocarbon exploration and production projects and capturing synergies with their partners.

All of this has enabled to create long-term value, in a scenario of volatility of crude and gas prices.

Buckskin to reach 30,000 bpd

In this initial production phase, Buckskin is anticipated to reach 30,000 barrels of oil per day.

Repsol owns a 22.5% working interest in Buckskin, while a consortium led by LLOG, the operator, owns a 33.8% interest.

Other companies that own a share of this site include Beacon Offshore Energy Buckskin LLC (18.7%), Navitas Buckskin US, LLC (7.5%) and two enterprises managed by Ridgewood Energy Corporation (17.5%).

The Buckskin project is located on Keathley Canyon blocks 785, 828, 829, 830, 871 and 872 in approximately 6,800 feet of water in the Gulf of Mexico; which is one of the world’s most profitable areas with the highest potential.

Repsol-LLOG deals

Repsol shares other assets with LLOG in this prolific area. Both companies recently signed an agreement that allows accelerating the plans and optimizing economic perspectives for other projects.

Through this deal, Repsol acquired a 30% share of Moccasin. Meanwhile, LLOG now operates Leon, where it plans to make delineation well in the second half of the year, to better assess this discovery made in 2014.

Repsol has expanded its footprint in the United States´ Gulf of Mexico since it first began operating there in 2007 due to the area’s high hydrocarbons potential, mature infrastructure and highly-qualified and competitive business support operations as well as stable regulation and world-class safety standards.

Repsol is present in the United States since 2006. As of December 31, 2018, the company had 559 employees working in the country, owned mineral rights to a total net surface area of 3,111 Km2

Its net production amounted to 113,539 barrels of oil equivalent per day. Net proved reserves in the United States amounted to 419.2 million barrels of oil equivalent.

The company has upstream activity in 25 countries, produces 715,000 barrels of oil equivalent per day and has one of the most efficient refining systems in Europe.

For more information, check Energía16

See also: Repsol posts net income of €2.3 billion, the highest in eight years

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