BHP sanctions Shenzi development

June 8, 2006
BHP Billiton has approved the development of its Shenzi field located across Green Canyon blocks 609, 610, 653, and 654, in approximately 4,300 ft of water.

Offshore Staff

(US, GoM) - BHP Billiton has approved the development of its Shenzi field located across Green Canyon blocks 609, 610, 653, and 654, in approximately 4,300 ft of water.

The sanctioned field development plan calls for initial production via seven subsea wells tied back to a newbuild TLP with capacity to treat 100,000 b/d of oil and 50 MMcf/d of gas.

The $1.94 billion full field development includes a total of 15 production wells with the possible addition of water injection. First production from Shenzi is expected by mid-2009. BHP says recoverable reserves are estimated at 350-400 MMboe.

Oil production from the field will be exported via a new 20-in. pipeline connecting to Platform B in Ship Shoal block 332, and gas production will tie-in to the existing Cleopatra pipeline.

BHP is 44% owner and operator of Shenzi; BP and Hess both hold a 28% working interest.

06/08/06