Shell Brings Two Gulf of Mexico Fields Onstream

Shell Exploration & Production Company's Crosby and Einset subsea fields are now online and sending production to their hub platforms.

The first subsea tieback to Ursa, the 3-well Crosby development, is located in Mississippi Canyon Blocks 898 and 899 in the Gulf of Mexico. Production from Crosby's first well began on Dec. 17, 2001. Currently, all three wells are online and producing 20,000 barrels of oil per day. Peak production for Crosby is expected to be approximately 60,000 barrels of oil per day and 90 million cubic feet of gas per day by the end of the first quarter of 2002.

Crosby is located about 160 miles southeast of New Orleans in approximately 4,400 feet of water. Shell operates Crosby and has a 50% interest in the project. British Petroleum also has a 50% interest. Using a dual flowline system, Crosby's production is carried from a six-slot manifold to Shell's Ursa tension leg platform, 10 miles away on Mississippi Canyon Block 809 in 3,950 feet of water. Once all of Crosby's wells are at peak production, Shell expects Ursa's total platform production to increase to 170,000 barrels of oil per day.

"Like other subsea production systems that recently came online, Crosby is another example of SEPCo's growth in the Gulf of Mexico and its aggressive development of its Mars Basin discoveries," said Dave Lawrence, SEPCo vice president, Exploration & Development. "But, Crosby is the first field to begin production in the southern part of the Mars Basin. Ursa, Mars, King, and ultimately, Princess, are all located in the northern part of the Basin."

Development costs for Crosby are approximately $298 million, excluding lease costs. Total gross ultimate recovery is estimated at more than 70 million barrels of oil equivalent.

Production from Einset began on Dec. 29, 2001; Einset is currently producing at a rate of 30 million cubic feet of gas per day. Also in the Gulf of Mexico, SEPCo's Einset subsea development is located in 3,500 feet of water. It is a single well project located approximately 170 miles southeast of New Orleans in Viosca Knoll Block 872. Einset ties back to Shell's Southeast Tahoe manifold in Viosca Knoll Block 784, which carries production 12 miles to Shell's Bud Lite platform in Main Pass 252. By utilizing existing subsea infrastructure, Shell was able to accelerate Einset's production startup.

Shell is the operator of Einset and holds a 50% interest; Dominion Exploration & Production, Inc., a wholly owned subsidiary of Dominion, holds the remaining interest. Einset is expected to recover in excess of 30 billion cubic feet of gas; peak production is expected to reach up to 60 million cubic feet of gas per day.