Gulf of Mexico's Europa Producing from Three Subsea Wells

Shell and its partners, BP Amoco, Agip, and Conoco, say that production from their Europa Field on Mississippi Canyon Block 934 in the Gulf of Mexico is currently flowing from three wells at approximately 40,000 b/d of oil and 30 million cf/d of gas. Production from the first well began January 31. The third and final well of the initial phase was completed March 11, 2000. The Europa subsea production system, located about 140 miles southeast of New Orleans in 3,900 ft of water, ties back 18 miles to Shell's Mars TLP on Mississippi Canyon Block 807. Europa is the third Shell-operated subsea project that has come onstream within the last eight months. The Macaroni project began production in August 1999, and Angus began producing in September 1999. Bringing this project onstream increases Shell's total number of deepwater producing properties in the Gulf of Mexico to 16, the most of any company. Shell is the operator of 13 of these projects.

"Shell and its partners are pleased to start up yet another successful subsea producing project in the deepwater Gulf of Mexico," said Steve McVeigh, vice president of production, Shell Exploration & Production Company. "Europa clearly demonstrates the economic success of developing significant deepwater reserves with reliable subsea wells and facilities which leverage off the infrastructure of nearby producing hubs."

In a subsea production system, the wells are located on the seafloor and are connected by pipelines to a host surface facility, where the oil and gas are processed and then transported, via pipeline, to onshore refining and processing facilities. Shell is the operator and holds a 34% interest in the project. BP Amoco has 33%, Agip has 32%, and Conoco has 1%.

Europa is located in Mississippi Canyon Block 934, 935, 890 and 891 in the Gulf of Mexico about 140 miles southeast of New Orleans in approximately 3,900 ft of water. The leases were acquired for US$ 4,615,000 in OCS Lease Sales 98 and 113 in May 1985 and March 1988, respectively. The discovery well was drilled in 1994 on Mississippi Canyon Block 935 by BP using the semi Ocean America. Two sidetracks and one appraisal well were subsequently drilled. The target reserves are in multiple Upper Miocene sands at depths ranging from approximately 16,000 to 19,000 ft subsea. The average net thickness is approximately 125 ft. The reserves are primarily oil. API gravity is about 24 degrees; sulfur content is about 3% by weight. Total gross ultimate recovery is estimated at about 160 million boe.

Shell announced in March 1998 the partners' plans to develop Europa utilizing a subsea system located on Mississippi Canyon Block 935, capable of accommodating eight wells, and tied back 20 miles to the Mars TLP on Mississippi Canyon Block 807 in 2,940 ft of water. The first phase of development will consist of up to four wells. Two to four wells may be drilled in subsequent phases, as needed, to maintain flow rate and optimize ultimate recovery from the field. Major contractors participating in the development were:

FMC Corporation—trees, manifold, and jumpers

Kongsberg Offshore Systems—controls

Stold Comex Seaway—umbilical installation

Alcatel—electro-hydraulic umbilical fabrication

Duco—chemical injection umbilical fabrication

J. Ray McDermott—flowline installation

Intec—engineering services

Total development costs were approximately $500 million, excluding lease costs. Production began January 31, 2000. Peak production rates may reach up to 60,000 b/d oil and 45 million cf/d gas.