Repsol, LLOG partner for deepwater projects

06 May 2019

Repsol and LLOG Exploration Offshore announced today the signing of an Asset Exchange and Joint Participation Agreement to accelerate plans and optimize the economics of projects in the deepwater Gulf of Mexico.

The agreement covers Keathley Canyon blocks 642, 643, 686, and 687 and provides for the drilling of a delineation well at Repsol’s Leon discovery. In addition, Repsol has joined the LLOG-operated discovery Moccasin in Keathley Canyon 736.

Repsol’s framework for upstream operations is to pursue lean exploration and production activities that increase the efficiency of projects, building a long-term sustainable business regardless of the volatility of oil and gas prices. This agreement aligns with the lean strategy, allowing the company to reach its operational goals thanks to the strengths of its relationship with LLOG.

The proximity between the discoveries; Moccasin and Leon are less than 20 miles apart and the expertise gained in Buckskin, which will come on stream this year, provides the opportunity for new ways of working, a simpler development architecture, synergies between projects, and efficiency gains.

Leon is a discovery made by Repsol in late 2014 on Keathley Canyon block 642 and is located about 200 miles offshore Louisiana in approximately 6,000 feet of water. Under the new joint agreement, LLOG will become the operator with a 33% working interest in the well while Repsol will have a 50% working interest. A delineation well is scheduled for the second half of 2019 and it will be operated by LLOG.

Likewise, Moccasin is a discovery made on Keathley Canyon 736 in 2011 in over 6,500 feet of water. Under the framework agreed, Repsol will acquire a 30% interest in the discovery and LLOG will retain a 31.35% working interest and operatorship.