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Spain’s Repsol, LLOG to Partner on Deepwater US Gulf Developments

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Spain’s Repsol and Covington, Louisiana-based LLOG Exploration have agreed to jointly develop projects on several blocks in the deepwater US Gulf of Mexico, building on their current partnership on the Buckskin project.

The pact covers Keathley Canyon Blocks 642, 643, 686, and 687 and the Leon and Moccasin discoveries. LLOG will become operator of Leon with a 33% of working interest, while Repsol will have 50%. A delineation well is planned there for the second half of the year. Repsol has also joined LLOG-operated Moccasin with the purchase of a 30% stake, with LLOG retaining 31.35%.

Repsol and LLOG have been working together since January 2017 when LLOG took over operatorship of Buckskin, which is on Keathley Canyon Blocks 785, 828, 829, 830, 871, and 872 in 6,800 ft of water. The discovery was made in 2009, and upon partnering, the companies designed a new streamlined development plan to improve project economics. It’s slated to come on stream by mid-year.

Repsol said the expertise gained in Buckskin and the close proximity of the Leon and Moccasin discoveries, which are less than 20 miles apart, provide the opportunity for new ways of working, a simpler development architecture, and synergies between projects. Both discoveries are targeting the same Lower Tertiary formation as Buckskin.

The Leon discovery was made by Repsol in late 2014 on Keathley Canyon Block 642, about 200 miles off Louisiana in 6,000 ft of water. The Moccasin discovery was made in 2011 on Keathley Canyon 736 in 6,500 ft of water.

“We have worked well together at Buckskin, and the delineation of the potentially significant discoveries at Leon and Moccasin is another perfect match for the deepwater technical knowledge and development expertise that both our companies possess,” said Philip LeJeune, LLOG president and chief executive officer, in a news release. “We look forward to working together with Repsol on other future deepwater developments in the Gulf of Mexico and greatly value our strong working relationship.”

LLOG is in the process of trimming its US gulf portfolio with its pending sale to Murphy Oil of a package covering 26 blocks in the Mississippi Canyon and Green Canyon areas, seven producing fields, and four development projects.

Spain’s Repsol, LLOG to Partner on Deepwater US Gulf Developments

30 April 2019

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