EIC: Activity at a glance

Sagar Das, EIC

May 1, 2016

The Energy Industries Council’s project tracking database EICDataStream is currently tracking 85 active and future projects in the US Gulf of Mexico, in various stages of development, and the outlook for 2017 and beyond is positive.

Major developments

The Walker Ridge area is a hive of activity with first production expected at Shell’s Stones field later this year. In anticipation of this, Shell is leasing a converted floating production storage offtake (FPSO) vessel for the development. SBM Offshore’s FPSO Turritella will initially host two subsea production wells, although more wells are planned for future phases.

Also well underway is Hess’ massive Stampede project, which will consist of two subsea drill centers tied back to a tension leg platform. The project is expected to produce up to 80,000 b/d, starting in 2018.

Shell’s Coulomb Phase 2 is a redevelopment of its producing deepwater field, bearing both oil and gas, and includes the drilling of two wells. Meanwhile, Anadarko will soon increase production at its K2 field, due to its Riser Base Gas Lift project. Chevron’s Jack/St. Malo Stage 2 project includes the addition of four production wells and associated subsea equipment.

Contractor activity

Technip remains very active in the gulf. The company was recently awarded lump-sum contracts for Deep Gulf Energy’s Barataria and South Santa Cruz projects. As well as providing project management and engineering services for Deep Gulf Energy’s Odd Job field, it is also manufacturing and installing the flowline and steel catenary riser. Technip is also supplying and installing major subsea equipment on BP’s Thunder Horse South Expansion and Chevron’s Blind Faith 2 subsea development.

Future outlook for the region

Looking ahead, subsea tiebacks will continue to provide relief in the face of the economic downturn. This trend is set to continue in 2017, with a lot of tie-back activity expected to take place, notably at Freeport-McMoRan’s Horn Mountain Deep and Horn Mountain Updip projects, LLOG’s Taggart, Statoil’s Yeti, and Noble’s Katmai and Troubadour fields.

Sagar Das is the EIC’s head of Oil and Gas. He is a Chemical Engineering and Chemical Technology graduate from Imperial College London with 24 years’ experience in process engineering and software industries.