First production launched from Gulf’s Llano field

Ray Tyson

Petroleum News Houston correspondent

Oil and gas production has begun from the Llano field in the deepwater Gulf of Mexico, operator Shell Exploration & Production Co. said May 17.

Llano, on Garden Banks blocks 385 and 386, is about 200 miles southwest of New Orleans in about 2,600 feet of water. The field is currently producing about 10,500 barrels of oil and 26 million cubic feet of gas per day from one well tied back 11.5 miles to Shell’s Auger tension-leg platform.

Dedicated production capacity at Auger is 25,000 barrels of oil and 75 million cubic feet of gas per day. A second well is planned to be on production later this month, Shell said.

Llano is Shell’s second project to use 15,000 pounds per square inch subsea equipment. Total development costs were about $215 million, including modifications to the Auger tension-leg platform. The project was completed on time and within the allocated budget, Shell said.

“This is the fifth subsea system that we have tied back to Auger,” said Gaurdie Banister, technical director for Shell EP Americas. “This tieback allows the Llano owners to efficiently leverage Shell’s existing infrastructure for their mutual benefit.”

Shell holds a 27.5 percent interest in the field. Amerada Hess owns 50 percent and ExxonMobil has the remaining 22.5 percent.