Repsol YPF reinforces its presence in the Gulf of Mexico, USA

Press Release 12/07/2006 07:00

With estimated reserves of 350 million to 400 million barrels for the initial phase of the Plan of Development (POD) in the Southern Flank, Shenzi is already considered to be one of the largest fields in the deepwater Gulf of Mexico USA.
Additional potential reserves have been identified in the evaluation by Repsol YPF, and which comprises South Flank additional volumes, shallower reservoirs, improved performance and water injection and which could boost the South Flank´s total reserves to 500 million boe.
Repsol YPFs evaluation team estimates that there are areas in the Northern Flank of the field that have geological characteristics similar to those of the Southern Flank. Exploration will begin in this area in the last quarter of 2006, and has a potential to be a project of similar size as the Southern Flank.
Once on stream this field is expected to raise Repsol YPFs production in the Gulf of Mexico to a total over 35,000 barrels of oil per day (bopd).
This investment of EUR1,700 million is made in the oil industrys most profitable deepwater area.
Repsol YPF consolidates its position in the Gulf of Mexico USA as one of the companys strategic growth areas.
Repsol YPF has acquired the 28% stake owned by BP in the deepwater Shenzi field, in the Green Canyon area of the Gulf of Mexico, for the price of $2,145 million (EUR 1,700 million).
This acquisition will increase the companys probable and proven reserves (2P) and will boost Repsol YPFs production in the Gulf of Mexico USA to a total over 35,000 barrels per day by 2009.
The Shenzi field is operated by BHP Billiton with a 44% interest and the third partner, besides Repsol YPF, is Amerada Hess, with 28%.