Tubular Bells (MC682) - Hess

Profile for Tubular Bells (MC682) - Hess Oil and Gas Project

Location and Geology

The Tubular Bells oil and gas field is located in the Federal offshore waters of the United States, specifically in the Gulf of Mexico. It is situated approximately 135 miles southeast of New Orleans, primarily on Mississippi Canyon Blocks 724, 725, 726, 683, and 682. The field is in a water depth of about 4,300 to 4,652 feet.

Discovery and Development

The Tubular Bells field was discovered in 2003. After Hess Corporation took over as the operator, the project was sanctioned in 2011 and was fast-tracked to achieve first oil production in just three years, a notable achievement in deepwater development.

Ownership and Operation

Hess Corporation operates the Tubular Bells field and holds a 57.14% working interest. Chevron USA Inc. holds the remaining 42.86% interest.

Production Facilities

The production facilities at Tubular Bells include a subsea wet tree infrastructure tied back to a three-level topside structure supported by a classic design spar. This spar is anchored by nine mooring lines and features a living quarters that can accommodate 50 persons. The facility utilizes advanced high-tech vertical production tree systems. The initial subsea development architecture includes two drill centers connected to three production wells, a mid-field inline sled for a fourth producer, and two water injection wells. The oil and gas are transported to shore via two separate 12-inch export lines that connect to the Williams Mountaineer (oil) and Canyon Chief (gas) pipeline systems.

Production and Reserves

• Reserves: As of 2019, the field had remaining reserves of 18.2 million barrels of oil and 1,645.19 million cubic meters of gas.
• Cumulative Production: By 2019, the field had produced 32.1 million barrels of oil and 2,364.43 million cubic meters of gas.
• Annual Production: In 2020, the field produced 7.64 million barrels of oil and 567.14 million cubic meters of gas per year. By 2022, production had adjusted to 4.78 million barrels of oil and 382.84 million cubic meters of gas per year.
• Forecast: The field is estimated to hold more than 120 million barrels of oil equivalent and is expected to have a productive life of at least 25 years.

Technical Details

• Reservoir Depth: The reservoir targets are approximately 24,000 feet below the surface, with 10,000 feet of salt.
• Oil and Gas Characteristics: The reservoir yields 35-degree API gravity oil with a gas-to-oil ratio of approximately 2,000. Some wells are capable of producing 25,000-30,000 barrels per day.

Economic and Employment Impact

The project's execution and construction were conducted entirely in the United States, creating an estimated 7,000 direct and indirect jobs in Texas and Louisiana. The topsides facility was constructed in Houma, Louisiana, and the hull was built in Ingleside, Texas.

Safety and Efficiency

The project was notable for its strong safety record, with a total recordable incident rate of 0.29 incidents per 200,000 man-hours and no catastrophic incidents or lost-time incidents. The project was also completed within budget, which is commendable given the complexity of deepwater projects.

Future Development

Full field development is expected to include 4-5 producing wells and 1-2 water injectors. Additional wells and water injection wells were planned for implementation through 2016.

Production Timeline

• First Oil: Achieved in 2014, just three years after the project was sanctioned in 2011.
• Peak Production: Reached in 2015, with average net production of approximately 20,000 barrels of oil equivalent per day.
• Economic Limit: Production is expected to continue until the field reaches its economic limit in 2068.