LLOG Exploration Offshore, a privately-owned exploration and production company focused on the deepwater Gulf of America ('GOA'), is pleased to announce it has achieved first production at the Salamanca Floating Production Unit ('FPU) which is located in Keathley Canyon 689 in approx. 6,400 feet of water.
- Initial production recently began from a well previously drilled and completed in the Leon field, adding important new long-term energy production in the Gulf of America;
- Production from a second and third well is forecasted to come online in the fourth quarter of this year which will be the initial producing well from the Castile field and an additional Leon well;
- A third well from the Leon field is expected to be completed in the first quarter of 2026 and another well in the Castile field is planned for 2026; and
- LLOG is the operator of the Salamanca FPU, as well as the Leon and Castile discoveries with Repsol and O.G. Oil & Gas as non-operating working interest owners.
Philip Lejeune, Chief Executive Officer and President of LLOG, commented, 'LLOG is very pleased to have recently initiated production at the Salamanca FPU with a well from the Leon field. Production will continue to ramp up as we add additional producing wells from both the Leon and Castile fields. As part of our long history of success and innovation, we look to integrate the latest technology and ideas into the development of new fields. The unique aspect of the Salamanca facility is that the FPU is the first refurbishment of a GOA facility that was in production and was successfully brought into commerce as a producing asset again. By modifying a previously built production unit compared with constructing a new facility, we are able to significantly reduce the time to bring these discoveries online. As important, the project has a significantly positive environmental impact as it reuses an existing unit compared with abandonment of the unit, while also accomplishing approximately an 87% reduction in emissions impact compared to the construction of a new unit. The other aspect is that the major construction for this project has been undertaken in shipyards and construction yards in Texas and Louisiana versus occurring internationally. This is another example of LLOG’s proven ability to meet the challenges of operating in the deepwater GOA and deliver a world-class facility that will help to meet the growing energy needs of our country. We are very proud of our team and thankful for our trusted partners who have worked together tirelessly to bring this complex project to completion safely, efficiently and economically.'
LLOG entered the Leon field as the operator in 2019 through an agreement with Repsol that also brought the global multi-energy company into the LLOG-operated Castile field, with the goal to accelerate plans and optimize the economics of developing both discoveries. O.G. Oil & Gas joined the partnership in 2024. The development of this historic project reflects the technical expertise of the partners and their ongoing commitment to innovation to deliver impactful domestic energy production in the Gulf of America.
The Salamanca project included the refurbishment of a former GOA production facility, which was transformed into an FPU with a capacity of 60,000 barrels of oil per day and 40 million cubic feet of natural gas per day. This innovative approach significantly minimized the environmental impact of the project by reusing existing infrastructure and reduced time, ultimately enhancing economic returns. LLOG met its goal of attaining initial production in 2025.
Source: LLOG Exploration
