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26-Jul-2007
The following was released to the media this
morning
Shell Exploration & Production Company announced today the start
of first production from the Deimos discovery in the Gulf of Mexico’s Mars
Basin. Deimos is a phased development; Phase I has a peak production capacity
of 30 kboe/day. This first phase consists of a three-well subsea system tied
back to the Mars Tension Leg Platform. The system selection for Deimos Phase II
is dependent on Phase I appraisal data and production. Options for the second
phase could range from additional subsea tiebacks to a stand-alone concept.
Located in Mississippi Canyon Blocks 762 and 806 in 3,000 feet of water, Deimos
was discovered in September 2002, when Shell encountered 248 true vertical net
feet oil in multiple sands of the exploratory section and 287 net feet oil in
the known producing field pays. The prospect is located in the Mars Producing
Unit, which is a Shell and BP partnership (71.5 percent and 28.5 percent
working interests, respectively).
Russ Ford, Shell’s Technical Vice President for the Americas Region said:
“This phased-development approach for Deimos allows Shell and our partner to
realize short-term production, while gathering information in order to optimize
Phase II and mature the overall Deimos opportunity in an efficient timeframe.
“Deimos is a subsea tieback that utilizes the design, construction and flow
assurance knowledge and experience we have developed across our Gulf of Mexico
assets. Deimos leverages the existing investment and infrastructure we already
have in the basin, namely the Mars TLP and related export pipelines and is
evidence of the untapped potential remaining in one of the Gulf's most prolific
producing areas.”
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