Buckskin (KC872) - LLOG Offshore

Buckskin (KC872) - LLOG Offshore Oil and Gas Asset Profile

Location

The Buckskin oil field is located in the Keathley Canyon region of the Gulf of Mexico, approximately 190 miles southeast of Houston, Texas. It operates in ultra-deepwater, with a water depth of about 6,800 to 6,921 feet.

Coordinates

The exact coordinates for the asset are 26.168, -92.133 (WGS 84).

Lease Blocks

The field covers six lease blocks: Keathley Canyon 785, 828, 829, 830, 871, and 872.

Operator and Ownership

LLOG Exploration Offshore is the operator of the Buckskin project. The ownership interests are distributed as follows:

• LLOG Deepwater Development Company and Buckstone Development Company (subsidiaries of LLOG): 33.8%
• Repsol E&P USA: 22.5%
• Beacon Offshore Energy Buckskin LLC: 18.7%
• Navitas Buckskin US: 7.5%
• Ridgewood Buckskin and ILX Prospect Buckskin (managed by Ridgewood Energy Corporation): each 8.75%.

Discovery and Appraisal

The Buckskin oil field was discovered by Repsol in 2009 through the Keathley Canyon 872 #1 well, drilled to a depth of 29,404 feet by the Stena Drillmax drilling rig. The well encountered approximately 400 feet of net hydrocarbons pay in the Upper and Lower Wilcox formations. Three appraisal wells were later drilled in Keathley Canyon 785 and 829, which encountered an average of 375 feet of high-quality oil pay in the Upper Wilcox formation.

Reserves

The Buckskin field is estimated to contain approximately five billion barrels of oil in place. As of 2019, the remaining reserves were reported as:

• Oil: 242.3 million barrels
• Gas: 1979.33 million cubic meters.

Production

Production at the Buckskin field began in June 2019. Here are some key production figures:

• Initial output: Estimated to reach 30,000 barrels of oil per day (BOPD).
• Cumulative production as of 2019:
  • Oil: 5.4 million barrels
  • Gas: 33.98 million cubic meters.
• Annual production rates:
  • Oil: 8.74 million barrels per year (2020), 11.54 million barrels per year (2022)
  • Gas: 57.99 million cubic meters per year (2020), 71.52 million cubic meters per year (2022).

Development Details

• Phase 1: Includes the drilling of two development wells in Keathley Canyon 829 to a total depth of approximately 29,000 feet. These wells are tied-back to the Anadarko-operated Lucius Spar offshore platform located at Keathley Canyon 875 using a six-mile-long subsea tieback.
• Subsea Equipment: Rated to 15,000 PSI, with dual eight-inch flowlines equipped with riser base gas lift.
• Future Phases: Additional wells will be drilled and connected to the Lucius platform via new subsea facilities.

Infrastructure

• Lucius Spar Platform: A spar-type stationary production unit (SPU) installed in 7,100 feet of water. It has a cylindrical hull, 110 feet in diameter, 605 feet long, and weighs approximately 23,000 tons. The platform can process up to 80,000 barrels of oil per day and 450 million standard cubic feet of gas per day.

Contractors Involved

• Pre-FEED and FEED: WorleyParsons and INTECSEA
• Drilling Services: Seadrill (for development wells), Stena Drilling (for the discovery well)
• Subsea Equipment: TechnipFMC
• Line Pipe: Tenaris
• Other Contractors: Core Laboratories, Alfred Cheyne Engineering, and Advanced Integrated Services.

Development Timeline

• Discovery: 2009
• Development Start: January 2018
• First Oil: June 2019
• Future Expansion: Buckskin Phase 2 is currently in the approval stage, expected to start in 2026.

Economic Projections

Production from the Buckskin field is expected to continue until it reaches its economic limit in 2048, with peak production achieved in 2021. As of the last reports, the field had recovered approximately 27.56% of its total recoverable reserves.