BP starts up Thunder Horse Northwest Expansion
BP has started up the Thunder Horse Northwest Expansion project in the deepwater Gulf of Mexico four months ahead of schedule and 15 percent under budget.
This is the fourth major upstream project to begin production for BP globally in 2018, following seven that started up in 2017 and six in 2016. BP expects new projects beginning production between 2016 and 2021, part of its strategic focus on growing gas and advantaged oil production, will provide 900,000 barrels of oil equivalent a day (boe/d) in new production by 2021.
The new project is expected to boost production at Thunder Horse by an estimated 30,000 boe/d at its peak, taking gross output at one of the largest oil fields in the Gulf of Mexico to over 200,000 boe/d. Originally planned for start-up in early 2019, the project is the latest sign of BP’s continued momentum in the U.S. offshore region.
For more information, visit www.bp.com or call (281) 366-4463.
Shell celebrates 40 years of deepwater innovation
Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc, has marked 40 years since it pioneered the modern deepwater era, celebrating a legacy of innovation that continues as part of the company’s growth strategy.
Shell currently has deepwater projects and exploration opportunities in the U.S., Brazil, Nigeria, Malaysia, Mexico, Mauritania and in the Western Black Sea. That global presence began with a 1970s prospect 105 miles southeast of New Orleans in the Gulf of Mexico.
In 1978, Shell brought the Cognac oil and gas field into production in 1,025 feet of water. Cognac was deeper than any previous offshore discovery and marked the first time an energy company pushed the frontiers of deepwater beyond the 1,000-foot water depth.
For more information, visit www.shell.com or call (832) 337-2034.
Interior unveils multibillion-dollar regulatory relief in 2018
The U.S. Department of the Interior (DOI) has claimed success in reducing the department’s regulatory burden in support of and compliance with President Trump’s Executive Order 13771 on Reducing Regulation and Controlling Regulatory Costs. According to DOI, it has been a leader in the Trump administration at cutting bureaucratic red tape. Fiscal Year 2018 (FY2018) regulatory reform actions have resulted in a savings of roughly $2.5 billion in net present value.
Since January 2017, DOI has withdrawn more than 150 proposed rulemakings from the regulatory agenda and finalized no less than 19 deregulatory actions in FY2018. These regulatory reforms, coupled with historic tax cuts and other factors, have grown the economy and helped U.S. energy production hit historic highs, DOI said. DOI recently held a record-shattering lease sale on federal lands in New Mexico that generated close to $1 billion — nearly half of which will go directly to the State of New Mexico.
For more information, visit www.doi.gov or call (202) 208-3100.
Report shows private equity’s future in deepwater Gulf of Mexico
A new analysis by Wood Mackenzie, “Does private equity have a future in the deepwater US Gulf of Mexico?,” explores what the future holds for smaller, nimbler offshore players, from operational strategies and risks to potential exit strategies.
Private equity-backed companies have shown a willingness to take a counter-cyclical investment approach in the Gulf of Mexico. Forecast development capital spend in the Gulf is set to rise from a projected $1 billion in 2018 to $1.2 billion in 2020, a 20-percent increase. Meanwhile, independents’ development capex is projected to decline over the same period from $1.4 billion in 2017 to $1 billion in 2020.
Although the majors represent the bulk of projected capital spend in the Gulf for the foreseeable future, private equity-backed companies will play a larger role in the region long-term.
For more information, visit www.woodmac.com or call (713) 470-1600.
BLM approves oil and gas development project in Alaska
The Bureau of Land Management (BLM) issued a joint record of decision (ROD) with the U.S. Army Corps of Engineers for the Greater Mooses Tooth 2 (GMT2) project, which involves continued production of oil and gas from federal lands in the 22.8-million acre National Petroleum Reserve-Alaska.
In August 2015, ConocoPhillips Alaska Inc. submitted an application to the BLM to permit a 14-acre pad and up to 48 wells, an 8.2-mile road and an 8.6-mile pipeline connecting GMT2 with GMT1. ConocoPhillips anticipates starting construction of GMT2 during the winter of 2018-2019 and expects the site to be in production for 30 years from 2020-2050. ConocoPhillips estimates the approximately 40,000 bpd will result in royalties amounting to roughly $2.13 billion, with payments shared among the resource owners.
For more information, visit www.blm.gov or call (907) 271-3335.