Repsol

In the Gulf of Mexico's deep waters

Repsol confirms the potential of the Shenzi field, exceeding production expectations by 20%

The new find took place in two reservoirs in the Shenzi G-104 well, with a total net pay of 555 feet.
New pay was also found in another well (Shenzi 8), in the North Flank of the field.
The Shenzi Platform is operating above its nominal capacity, producing in excess of 120,000 barrels of oil per day, 20% more than design capacity.
The Gulf of México is consolidated as one of the company’s key growth areas.
Repsol has a solid position in the Gulf of Mexico, one of the world’s most attractive deepwater areas and one of Repsol’s ten key strategic projects.

Press Release

30 October 2009 08:20 CET

Repsol and its partners BHP Billiton and Hess Corporation made two new finds in the Shenzi field in the Gulf of Mexico. The finds in the G-104 and Shenzi-8 wells confirm the high potential of the Shenzi field, where output is already above expectations.

Repsol owns a 28 percent stake on the Shenzi development. BHP Billiton operates the consortium, with a 44 percent stake, and Hess Corporation owns the remaining 28 percent.

A new oil pay of 555 ft was encountered in the Shenzi G104 well. The well, drilled to a depth of 25,605 ft, began producing in September this year and further evaluation is underway to assess future development potential of these shallower intervals.

In addition, the Shenzi-8 appraisal well, drilled in November 2008, to a total depth of 25,904 ft encountered approximately 100 feet of net oil pay in the Miocene age reservoirs, opening additional potential to the Shenzi North Flank. These are the same reservoirs as have been successfully developed and are currently producing in the Shenzi South Flank.

The platform already installed at Shenzi is producing in excess of 120,000 barrels of oil per day, 20% more than the facility’s design capacity and in excess of production expectations.

Exploration and production in this area are amongst the ten key growth projects in Repsol’s 2008-2012 strategic plan and reinforces the company’s presence in OECD countries.

Production in the Shenzi field began in March 2009 from a platform located in the Green Canyon 653 block, 195 kilometres off the Louisiana coast (USA). Production currently comes from 10 wells connected to the platform and is expected to be expanded to 15 producing wells.

Repsol has significantly reinforced its position in the deep waters in the Gulf of Mexico in the last years after buying into the Shenzi-Genghis Khan project (an extension of the Shenzi field which began producing in 2007) and the recent discovery in Buckskin.

In the last three years, Repsol has reinforced its position in the area, where the company holds 101 licenses in US waters including 16 winning bids in the latest Central Gulf of Mexico Lease Sale.

The Gulf of Mexico is considered to be one of the world's most profitable deep water areas by the oil industry.