Woodside-operated Shenzi North hits early production in US Gulf of Mexico

The Woodside-operated Shenzi North project has begun production in the deepwater US Gulf of Mexico, achieving operational status ahead of its originally targeted first oil in 2024. The project received a final investment decision (FID) in July 2021 and was backed by a $544 million capital expenditure approved by the BHP Board. Last year, Woodside acquired the asset as part of its merger with BHP’s petroleum business.

Woodside’s Role and Production Goals

Woodside CEO Meg O’Neill remarked, “First production from Shenzi North shows how we are leveraging existing infrastructure to increase production and provide attractive returns from our Gulf of Mexico business.” She also lauded the project team saying, “Taking the project from FID to first oil in 26 months is a great achievement. I commend the project team on safely bringing this resource into production well ahead of schedule.”

Project Details and Infrastructure Utilization

The Shenzi North project is a two-well subsea tieback, utilizing the existing Shenzi infrastructure to expand its production capacity. Woodside holds a 72% interest in the asset, with Repsol retaining the remaining 28%. Situated approximately 195 km off the Louisiana coastline in the Green Canyon protraction area, the Shenzi field was initially discovered in 2002, and production began in 2009.

Production Capacity and Transportation

The existing Shenzi platform boasts a production capacity of 100,000 bbl/d for oil and 50 MMscf/d for gas. The oil and natural gas generated from Shenzi North will be funneled to connecting pipelines, eventually reaching Gulf Coast customers.

Future Developments and Impacts

Shenzi North is the first development phase of the Greater Wildling mini-basin, discovered in 2017. The project is anticipated to add two wells and subsea equipment, establishing a new drill center north of Shenzi with a production capacity of up to 30 mboe per day. The project’s development was enhanced through Ocean Bottom Node seismic data and analysis, setting the stage for future expansion in the Gulf of Mexico.