Serrano Subsea System Added to Auger

Shell has added the Serrano subsea production system to its Auger tension leg platform. Serrano is the third subsea system to produce via Auger. Shell began producing from its first well on December 1st and the second well started shortly thereafter on December 8th. The wells are located in the Garden Banks area in approximately 3,400 feet of water on blocks 516 and 472 in the Gulf of Mexico and are producing 52.5 MMcfd of gas and 4,625 b/d of oil.

Serrano production is via a subsea flowline sled on Garden Banks 516, which is tied back 6 miles to Auger via a single production flowline. Auger's first subsea production system, Macaroni, began production in 1999. The second, Oregano, began production in October. Serrano development costs are $120 million, excluding lease costs. Total recovery is estimated at 50 Mmboe. Peak production will be 160 MMcfd of gas next year.

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