Oxy

With FID out of the way, first oil from Gulf of Mexico project anticipated next quarter

Exploration & Production

Texas-based exploration and production player Beacon Offshore Energy has confirmed a final investment decision (FID) for the development of an oil discovery in the U.S. Gulf of Mexico. This project will be tied back to one of the spar platforms operated by Occidental (Oxy), former Anadarko Petroleum Corporation.

Oxy

The FID for the Winterfell discovery, which is operated by BOE Exploration & Production LLC and expected to be developed as a cost-effective, low-emissions subsea tie-back to the Oxy-operated Heidelberg spar in Green Canyon Block 860, comes after Beacon completed the drilling of the Winterfell-2 appraisal well in January 2022 and confirmed greater potential in the area. Several months later, the firm hired Perma-Pipe International Holdings for the Winterfell project.

Scott Gutterman, Beacon’s CEO, commented: “The investment decision represents an important milestone for the Winterfell project and reflects our commitment to safely and efficiently develop material-operated resources located in the deepwater Gulf of Mexico. Our technical and commercial teams continue to develop solutions that provide win-win outcomes for our partners.

“At Winterfell we are unlocking the sub-salt field’s potential via the execution of horizontal drilling technology applied to open hole completions while securing access to the nearby Heidelberg spar and associated downstream infrastructure with available ullage. The Winterfell development once again demonstrates the ability to produce oil and natural gas in the U.S. Gulf of Mexico with a lower carbon footprint than almost all other regions.”

The Miocene aged project was initially discovered in 2021 with subsequent successful appraisal drilling conducted in 2022. Winterfell is principally located in Green Canyon blocks 943, 944, 987, and 988 with a water depth of approximately 5,200 feet. According to Beacon, the first oil is slated to be achieved early in the second quarter of 2024 from three initial wells, which are projected to deliver a gross production of around 22,000 boepd.  

The partners in this project are Beacon Offshore Energy Exploration LLC (35.08%), BOE (0.33%), a subsidiary of Kosmos Energy (25.04%), Westlawn GOM Asset 3 Holdco LLC (15.0%), Red Willow Offshore (12.5%), Alta Mar Energy (Winterfell) LLC (7.55%), and CSL Exploration (4.5%).

Beacon is working on developing its resource position, including its operated Shenandoah project, which remains on track for the first oil by the end of 2024. The U.S. player currently holds interests in 89 deepwater leases with net resource potential above 400 mmboe.