Beacon Offshore Energy commences oil production from Winterfell development
Beacon Offshore Energy, along with its consortium of partners, has successfully started oil production from the Winterfell development in the US Gulf of Mexico. This significant milestone was achieved through a subsea tieback to the Heidelberg spar, marking a crucial phase in the project’s lifecycle.
The Winterfell field, discovered in 2021 and appraised in 2022, is being developed in a phased approach. The first phase of development has seen the commencement of two production wells, with plans to bring a third well online by Q3 2024. These wells are expected to collectively produce approximately 20,000 barrels of oil equivalent per day (boepd).
A final investment decision was made in January 2024, with an initial plan to draw the first oil in Q2 2024. Although there were minor delays due to subsea hookup challenges, first oil was achieved shortly thereafter. The overall first phase targets a production of about 100 million barrels of oil equivalent, with further potential from subsequent development phases.
Located around 21km from the Winterfell field, the Heidelberg spar, operated by Occidental Petroleum, plays a pivotal role in the infrastructure of this development. Its proximity and existing facilities have enabled an efficient integration and commencement of production.
The launch of production at Winterfell by Beacon Offshore Energy is a testament to the effectiveness of strategic partnerships and advanced technological deployment in deep-water oil exploration. The project not only highlights the capabilities of Beacon and its partners but also aligns with the industry’s move towards more efficient and strategically positioned offshore developments.
Beacon Offshore Energy holds a 35.41% operating stake in the project, with significant contributions from partners such as Kosmos Energy, Westlawn GOM Asset 3, Red Willow Offshore, Alta Mar Energy (Winterfell), and CSL Exploration. Kosmos Energy, in particular, has expressed strong commitment to the project, with CEO Andrew Inglis noting the strategic fit of Winterfell within their portfolio due to its high margin barrels, low carbon intensity, and quick payback expectations.
The initiation of oil production at the Winterfell site represents a strategic advancement in offshore oil production, setting a benchmark for future developments in the Gulf of Mexico. The project not only supports the growth targets of the involved companies but also contributes to the broader energy goals of the region.