BP announced the start-up of oil and natural gas production from the Holstein development in the deepwater Gulf of Mexico, 100 mi south of Grand Isle, Louisiana. BP is the operator of Holstein with a 50% working interest. Shell also has a 50% working interest.
Located in 4,300 ft of water in Green Canyon block 645, the Holstein spar is the largest of its kind in the world. Production began on Dec. 9, and will increase over the next year as additional wells are completed and brought online. At peak production, the facility will produce more than 100,000 b/d and 90 MMcf/d.
"It is exciting to see Holstein commencing production on schedule. Congratulations to all those involved in the project," says David Eyton, vice president of BP's GoM deepwater business unit. "Holstein start-up marks a period of rapid technological advance in the deepwater for BP and for the industry. Technology developed here is already benefiting later projects, both in the GoM and elsewhere in the world."
"The Holstein development project is an important component of Shell's effort to develop existing oil and natural gas resources and we are proud of the Shell team that worked closely with BP to deliver this important GoM deepwater project," says Raoul Restucci, CEO of Shell EP Americas.
The Holstein development consists of a truss spar, equipped with facilities for simultaneous production and drilling operations. Oil from Holstein will be transported via the Mardi Gras Transportation System to Ship Shoal block 332B, where it will interconnect with the Cameron Highway Oil Pipeline System (CHOPS). Holstein gas will be exported to Ship Shoal block 332A, where it will interconnect with Manta Ray Gathering System, and from there go to the Nautilus Gas Transportation System into Louisiana.
BP discovered Holstein in 1999 using theOcean America mobile offshore drilling unit. Construction of the spar components and topsides started in 2001 in Pori, Finland, and Morgan City, Louisiana, respectively.
Holstein is one of several BP deepwater developments scheduled for start-up in the Gulf over the next two years. The others are Mad Dog, Thunder Horse, and Atlantis.