Editor's note: This Gulf of Mexico section first appeared in the November-December 2022 issue of Offshore magazine. Click here to view the full issue.
By Bruce Beaubouef, Houston
A recent string of announcements from producers and developers indicates that E&P activities in the Gulf of Mexico may finally be back on an upswing. These activities are being driven by independents and mid-size operators who are moving forward with engineering studies, drilling plans, and field development schemes that are planned for execution in 4Q 2022 or first half 2023.
Operating company W&T Offshore recently reported that FEED and permitting processes are underway for the Holy Grail well on the Magnolia field at Garden Banks 783. The company says it expects to activate and mobilize a drilling rig in the first half of 2023, with drilling starting during the second quarter. W&T also says that it recently performed two recompletions and five workovers on its GoM fields, and it plans further recompletions and workovers in the coming year.
Meanwhile, Kosmos Energy provided an update on its Winterfell oil development project in the Green Canyon area. The project partners, which include Kosmos Energy, Beacon Offshore, and handful of other developers, approved the field development project in September. In November, a Beacon affiliate signed a rig commitment letter to drill and complete three wells for the project starting mid-2023. According to Kosmos Energy, further agreements should follow during the next few months on the host facility that will handle the production and on the midstream export. The partners are targeting first oil in first-quarter 2024.
Elsewhere, Anadarko US Offshore LLC (Oxy) and Ridgewood Energy have agreed to participate in the Oso-1EXP exploration well in Atwater Valley block 138. Murphy Oil will remain the operator with 33.34%, the company said in its latest results statement, and expects drilling to start in 4Q 2022.
Still elsewhere, Talos Energy provided an update on a number of its drilling campaigns. The company reported that Seadrill’s Sevan Louisiana semisubmersible rig has started drilling its Lime Rock prospect, close to the company’s Ram Powell facility. After Lime Rock, Talos plans to drill Venice, another prospect close to the Ram Powell facility, before returning to finalize the Bulleit completion early next year.
Next up for the company will likely be a well on the Rigolets prospect close to the Pompano platform rig in Viosca Knoll block 989. Talos has a 60% interest in the prospects. If the campaign proves successful, first oil could follow within 12 to 18 months, at rates between 5 and 15,000 boe/d.
Talos reports that drilling is also underway from the Pompano platform on the Mount Hunter prospect with results and first production anticipated in 1Q 2023.
Talos also reported that Diamond Offshore’s BlackHornet rig spud the Puma West appraisal well in Green Canyon in October, with a planned depth of about 26,700 ft.
On the lease sale front, the Bureau of Ocean Energy Management (BOEM) has published a Proposed Notice of Sale for Gulf of Mexico OCS Oil & Gas Lease Sale 259. A Proposed Notice of Sale issued in October gave stakeholders the opportunity to submit comments and recommendations to BOEM regarding the size, timing and location of the lease sale, until Nov. 21, 2022.
The Inflation Reduction Act directed BOEM to hold Lease Sale 259 by March 31, 2023. BOEM is expected to provide additional information regarding Lease Sale 259 in the near future.
