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GoM: LLOG Exploration discusses recently achieved Salamanca Project operational milestones


08 Jan 2025

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LLOG Exploration, a privately-owned exploration and production company focused on the deepwater Gulf of Mexico,has announced the achievement of several significant milestones marking major steps forward in the construction of the Salamanca Floating Production Unit ('FPU'). Additionally, initial well operations at both Leon and Castile have been successfully completed. 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.

Eric Zimmermann, Chief Operating Officer of LLOG, commented, 'LLOG has a long history of developing prolific projects in the GOM safely, efficiently and economically. We are pleased to be progressing another world class project and to have reached several important milestones while also optimizing financial flexibility through securing financing for the Salamanca project. The unique aspect of the Salamanca facility is that the FPU is the first refurbishment of a GOM facility that was in production and being 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. Also, the project has a significantly positive environmental impact as it reuses an existing unit compared with abandonment of the unit, while also accomplishing approximately a 70% reduction in emissions impact compared to the construction of a new unit. As a Louisiana-based company, the other aspect of the project that brings us pride is the major construction for this project has been undertaken in shipyards and construction yards in Texas and Louisiana versus occurring internationally. Our ongoing success and achievements in delivering complex deepwater projects reflect the dedication and expertise of our outstanding team. We look forward to continuing our progress and contributing to the energy needs of the Nation.'

The Salamanca project involves the refurbishment of a former GOM production facility, which is being 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 minimizes environmental impact by reusing existing infrastructure and reduces time, ultimately enhancing economic returns.

The hull refurbishment was completed at Seatrium in Brownsville, TX and delivered to Kiewit’s yard in Ingleside, TX on October 17, 2024, marking a critical milestone in the project's timeline. In early November 2024, the new topside equipment and deck was successfully rejoined to the hull and final outfitting of the FPU will be completed in early 2025. This achievement brings LLOG closer to the project's mid-2025 production target and highlights the Company's commitment to delivering high-quality, sustainable energy solutions.

All of the initial wells to support the Salamanca FPU have been successfully drilled and cased. This includes discovery wells drilled at Castile and Leon, with additional successful development wells drilled in 2023 and 2024. The final well finished drilling in September 2024 at the Leon Development (Keathley Canyon 686 #4), with better than expected results, encountering greater than 1,000 feet of high quality oil-bearing sands. The facility will be located in Keathley Canyon 689 in approximately 6,400 feet of water.

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.

Original announcement link

Source: LLOG Exploration





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