Woodside Energy Commences Production at Shenzi North Field, Boosting Gulf of Mexico Output
Australian independent oil and gas company, Woodside Energy, has announced the start of production from its deepwater Shenzi North oil field located in the US Gulf of Mexico. This significant development has been achieved ahead of the original 2024 guidance and showcases Woodside Energy’s ability to leverage existing infrastructure to increase production.
The Shenzi North oil field is a two-well subsea tieback project that utilizes a portion of the existing Shenzi infrastructure, which is operated by Woodside Energy. This strategic acquisition was made possible through the merger between Woodside Energy and the petroleum arm of another Australian resources firm, BHP, in 2022. The commencement of production at Shenzi North is expected to boost the oil output of the Shenzi platform by 14,000 barrels per day (b/d).
Woodside Energy revealed that the Shenzi platform, which currently produces oil and gas, previously had a production capacity of 100,000 b/d of oil and 515 million cubic meters per year of gas. With the addition of Shenzi North, the platform’s oil production will increase to 114,000 b/d. However, this development does not affect Woodside Energy’s earlier production guidance for 2023, which remains at 180 million to 190 million barrels of oil equivalent (boe) per year.
Meg O’Neill, the Chief Executive of Woodside Energy, expressed her satisfaction with the achievement, stating, 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. Taking the project from final investment decision to first oil in 26 months is a great achievement.
As the operator, Woodside Energy holds a 72 percent interest in the Shenzi conventional oil and gas field, while Spanish integrated oil firm Repsol controls the remaining 28 percent. This offshore field, located 195 kilometers off the coast of Louisiana, was initially discovered in 2002, with its first oil and natural gas production commencing in 2009.
Woodside Energy’s Gulf of Mexico assets, including Shenzi, the Atlantis floating production unit (FPU), Mad Dog a-Spar, and Argos FPU, collectively produced 82,000 boe/d during January to June 2023, according to the company’s statement on August 22.
Woodside Energy’s successful start of production at Shenzi North not only boosts its Gulf of Mexico output but also highlights the company’s commitment to leveraging existing infrastructure and maximizing production efficiency in its operations. This achievement sets a positive precedent for future developments in the offshore energy sector.
