Spain's Repsol and U.S.-based LLOG Exploration Offshore will partner to develop new deepwater projects in the Gulf of Mexico, Repsol announced on Monday.
The companies signed an Asset Exchange and Joint Participation Agreement to accelerate plans and optimize the economics of projects covering Keathley Canyon blocks 642, 643, 686, and 687. The agreement will allow for delineation well drilling at Repsol's Leon discovery. In addition, Repsol has joined the LLOG-operated discovery Moccasin in Keathley Canyon 736.
According to the statement, Leon is a discovery made by Repsol in late 2014 on Keathley Canyon block 642 and is located about 200 miles offshore Louisiana at a depth of approximately 6,000 feet. Under the new joint agreement, LLOG will become the operator with a 33% working interest in the well while Repsol will have a 50% working interest. A delineation well is scheduled for the second half of 2019 and it will be operated by LLOG.
Likewise, Moccasin is a discovery made on Keathley Canyon 736 in 2011 and located over 6,500 feet underwater. Under the agreement, Repsol will acquire a 30% interest in the discovery and LLOG will retain a 31.35% working interest and operatorship.
According to the press release, Repsol and LLOG have been working together on several hydrocarbon exploration and development projects in the Gulf of Mexico since January 2017, when LLOG took over operatorship of the Buckskin project, which is located on Keathley Canyon blocks 785, 828, 829, 830, 871, and 872. First production from the project, located at a depth of approximately 6,800 feet, is expected by mid-year 2019.
By Hale Turkes