Habanero Subsea Development Begins Production

Shell Exploration & Production Company announced that production began at its Habanero subsea development on November 29, 2003.

Habanero is located in Garden Banks Block 341 in the Gulf of Mexico about 200 miles southeast of New Orleans in approximately 2,015 feet of water. The subsea development ties back approximately 11.5 miles to Shell's Auger tension leg platform, making this the fourth subsea development to tie back to the Auger hub. Peak production for Habanero is expected to reach 22,000 barrels of oil and 75 million cubic feet of gas per day by the end of first quarter, 2004. Total development costs for Habanero are approximately $190 million, excluding lease costs.

"We're very pleased to add another subsea project to Shell's large deepwater production inventory in the Gulf of Mexico," said Gaurdie Banister, regional technical director for Shell Exploration and Production in the Americas. "Shell has also recently announced the production start up of the Na Kika development, which features six additional subsea tiebacks."

Working interest owners of Habanero are Shell, as operator, (55 percent), Murphy Oil (33.75 percent), and Callon Petroleum (11.25 percent).

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