Blacktip

Blacktip Oil and Gas Prospect Profile

Location

The Blacktip oil and gas prospect is situated in the US Gulf of Mexico, approximately 250 miles (400 km) south of Houston. It is located in the Alaminos Canyon Block 380, within the Wilcox reservoirs in the thrust belt of the Perdido corridor.

Discovery Details

• The Blacktip discovery was announced in April 2019 by Shell and Equinor. The exploratory well intercepted a net oil pay of more than 400 feet (122 meters) with good reservoir and fluid properties in the prolific Wilcox formation.

Partners and Ownership

• Initially, the project was operated by Shell with a 52.37% working interest. Other partners included Chevron USA (20%), Equinor Gulf of Mexico (19.12%), and Repsol E&P USA (8.5%).
• However, as of 2023, Shell divested from the project, and the ownership is now split between Repsol (50%) and LLOG Exploration Offshore (50%).

Reserves and Production

• The Blacktip prospect is estimated to have reserves of approximately 200 million barrels of oil equivalent (boe), with a total hydrocarbon reserve of 90 million boe as of 2023.
• The project is expected to reach a Final Investment Decision (FID) in 2025 or 2026, with production anticipated to start in 2027.

Development Plan

• Initially, there were considerations for a newbuild production platform due to the distance from existing infrastructure. However, recent plans suggest that the Blacktip prospect, along with the nearby Blacktip North and Leopard discoveries, will be tied back to the existing infrastructure of the Perdido platform to enhance production in the Perdido Corridor.
• The Perdido platform, one of the deepest production facilities in the US Gulf of Mexico, serves as a production hub and has the capacity to process 100,000 barrels of oil and 200 million cubic feet of gas per day.

Nearby Discoveries

• Blacktip North: Located in Alaminos Canyon Block 336, this prospect was discovered in December 2021. The well encountered approximately 300 feet of net oil pay at multiple levels. It is operated by Shell Offshore Inc. (89.49%) and co-owned by Repsol E&P USA LLC (10.51%).
• Leopard: Discovered in May 2021, this prospect is located in Alaminos Canyon Block 691. It intercepted more than 600 feet of net oil pay at multiple levels and is operated by Shell (50%) and Chevron USA (50%).

Infrastructure and Operations

• The Blacktip prospect, along with Blacktip North and Leopard, will leverage the existing infrastructure in the Perdido Corridor, which includes Shell’s Great White, Silvertip, and Tobago fields.
• The development will utilize Shell's deep-water infrastructure in the US Gulf of Mexico, including the Perdido spar, which is the world’s deepest spar, moored at a water depth of approximately 2,450 meters (8,000 feet).

Water Depth and Drilling

• The Blacktip prospect is located at a water depth of 1,900 meters (6,200 feet).
• The Blacktip North well was drilled to a total measured depth of 27,770 feet (8,464 meters) using the Transocean ultra-deepwater drillship Deepwater Poseidon.