(GoM)- Total E&P USA, Inc. closed a like-kind exchange agreement with Shell Exploration & Production to gain a 17 percent interest in the deepwater Tahiti field in the GoM.
Total and Shell reached an agreement in November 2005 to exchange Total's interests in four onshore fields in South Texas for the interest in Tahiti. Shell now owns and operates 107 MMcf/d of net natural gas production in South Texas.
For Total, the deal means that, pending customary regulatory approvals, they will become co-owner in the Chevron-operated Tahiti field. The field is located in more than 4,000 ft of water in the Green Canyon area of the GoM. The discovery is projected to come on-line in mid-2008 with daily production capacity of 125,000 bbl of oil and 70 MMcf of natural gas.
"This transaction supports our strategy to focus activities on offshore GoM," said Rene Chappaz, president and CEO of Total E&P USA. "We are pleased to add a world-class asset like Tahiti to our portfolio."