Offshore Field Development Projects
Shenzi Shenzi
Operator:BHP Billiton
Water Depth:1,341 m / 4,425 ft
Region:N. America - US GOM
Country:US
Last Updated:Jan 12, 2012    (view update history)
Project Description
The Shenzi field is located 104 miles (167 kilometers) south of Fourchon, La., in the Gulf of Mexico on Green Canyon Blocks 609, 610, 653 and 654. The field is operated by BHP Billiton, which holds a 44% interest in the project. Repsol holds 28%, and Hess holds the remaining 28% interest.

Located in a water depth of 4,300 feet (1,311 meters), Shenzi lies in the Western Atwater Fold Belt area on the geological trend where the Mad Dog, Atlantis, and Neptune fields were found. Shenzi has estimated recoverable reserves of 350 to 400 MMboe.

The field was discovered in 2002 when exploratory drilling on Green Canyon Block 654 encountered 140 feet (43 meters) of net pay. An initial appraisal well, Shenzi-2, was drilled in 2003, followed by the drilling of Shenzi-3 in 2004, ...
The Shenzi field is located 104 miles (167 kilometers) south of Fourchon, La., in the Gulf of Mexico on Green Canyon Blocks 609, 610, 653 and 654. The field is operated by BHP Billiton, which holds a 44% interest in the project. Repsol holds 28%, and Hess holds the remaining 28% interest.

Located in a water depth of 4,300 feet (1,311 meters), Shenzi lies in the Western Atwater Fold Belt area on the geological trend where the Mad Dog, Atlantis, and Neptune fields were found. Shenzi has estimated recoverable reserves of 350 to 400 MMboe.

The field was discovered in 2002 when exploratory drilling on Green Canyon Block 654 encountered 140 feet (43 meters) of net pay. An initial appraisal well, Shenzi-2, was drilled in 2003, followed by the drilling of Shenzi-3 in 2004, which further delineated the southern portion of the field.

Field Development

This $4.4 billion project consists of two development phases. During the first phase, seven pre-drilled subsea wells will be tied-back to the Shenzi TLP; and the full field development will consist of three main drill centers supporting up to 15 oil wells.

Petrofac awarded contracts in 2007 to commence subsea development during the third quarter of that same year. INTEC Engineering was awarded the deepwater subsea development execution support contract; and Technip was awarded a contract for the flowlines, risers and subsea structure installation. Technip's contract also included the engineering, fabrication and installation of a system of two infield flowlines and six flowlines welded to steel catenary risers. Deep Blue, Technip's pipelay vessel, will perform the offshore installation.

The Shenzi TLP has a payload capacity of 15,500 tons (14,061 tonnes) and a displacement of 43,500 tons (39,463 tonnes). The platform can host up to 20 subsea production and water injection wells, and has the capacity to produce up to 100,000 bopd and 50 MMcf/d (1 MMcm/d).

MODEC received a contract for the provision of the Shenzi TLP, which included the project management, design, engineering, procurement, construction and pre-commissioning activities of the platform. Deepwater Specialists Inc. provided the commissioning, planning and execution for the hull and topsides of the platform.

Shenzi Pipeline

Enterprise Products Partners constructed an 83-mile (134-kilometer), 20-inch-diameter pipeline that is located in 4,300 feet (1,311 meters) of water at Green Canyon Block 653, roughly 120 miles (193 kilometers) off the coast of Louisiana. The pipeline has the capacity to transport up to 230,000 bopd, and it is the connector between the Cameron Highway Oil Pipeline and Poseidon Oil Pipeline system at Enterprise's Ship Shoal Block 332B junction platform. Gas will then be exported through an 11-mile (18-kilometer), 12-inch-diameter pipeline into the existing Cleopatra trunk lines.
Production is expected to commence on the field the first quarter of 2009.
Activities
Status Updates
Hess Allocates $1.6B for Production Drilling on Shenzi, Llano
Type: Status Update

Jan. 2012 - Hess has allocated production expenditures of nearly US $1.6B for drilling production and water injection wells at Shenzi, and drilling production wells at the Llano field in the deepwater GOM. Situated on Green Canyon 609, Shenzi commenced oil/gas production on March 25, 2009, and currently has 11 production wells online. The Llano field, located on Garden Banks 385 and 386, came online April 29, 2004, via the Auger TLP.

BHP Billiton Increases Shenzi's Output
Type: Status Update

Jun. 2011 - BHP Billiton Petroleum brought a newly drilled well into production on the Shenzi field in the Gulf of Mexico. The SB-201 well reached a total measured depth of 25,126 feet (7,658 meters) and is currently producing about 17,000 bopd. The operator said this is the 11th producing well within the Shenzi field. On June 2, BHP Billiton began drilling a second deepwater production well (SB-101) on the field to increase the field's output. The Shenzi TLP lies approximately 120 miles (193 kilometers) off the Louisiana coastline in 4,300 feet (1,311 meters) of water on Green Canyon Block 653. BHP Billiton operates the project with a 44% interest; Hess Corporation holds 28%; and Repsol holds the remaining interest.

Repsol Hits More Oil in GOM's Shenzi Field
Type: Status Update

Oct. 2009 - Repsol found additional oil in two wells on the Shenzi oil field, located 104 miles (167 kilometers) south of Fourchon, La. in the GOM on Green Canyon Blocks 609, 610, 653 and 654. Repsol identified oil in the Shenzi-8 well and also found new pay in its existing G104 well. After drilling to a depth of 25,605 feet (7,804 meters), the G104 well encountered 555 feet (169 meters) of net oil pay. As expected, 68 feet (21 meters) of oil pay was encountered in the Lower Miocene interval (production had commenced in September). Further evaluation has begun to test the development potential of shallower intervals.

BHP Billiton's Shenzi Facility Exceeding Production Expectations
Type: Status Update

Sep. 2009 - BHP Billiton's Shezi field in the deepwater Gulf of Mexico, which began production on March 23, 2009, has now exceeded the facility's nominal capacity of 100,000 bopd by having achieved sustained rates of 120,000 bopd. The Shenzi facility is located approximately 120 miles (195 kilometres) off the Louisiana coastline and is installed in approximately 4,300 feet (1,300 metres) of water on Green Canyon Block 653, making it the second deepest TLP in the world. Initial field development includes seven subsea wells tied-back to the TLP, with full field development expected to expand to a total of 15 producing wells and future water injection wells.

Alliance Engineering Contributes to Successful Start-Up of Shenzi TLP
Type: Facility Construction

Jul. 2009 - Alliance Wood Group Engineering has contributed to the successful start-up of the BHP Billiton operated Shenzi development in the deepwater Gulf of Mexico. Alliance was responsible for providing front-end engineering design and detailed engineering for the topsides of the Shenzi tension leg platform (TLP). The facility, located 120 miles off the Louisiana coastline in approximately 4,300 feet of water in Green Canyon Block 653, is the second-deepest TLP in the world. It was designed for a capacity of 100,000 BPD oil and 50MMscf/D gas.

Enterprise's Deepwater Oil Pipeline Begins Serving Shenzi Field
Type: Development Activity

Apr. 2009 - Enterprise announced that construction of its crude oil pipeline serving the BHP Billiton-operated Shenzi field in the GOM was completed, and is now transporting production from the oil field, located at GC Block 653. The 83-mile (134-kilometer), 20-inch-diameter pipeline, which has a capacity of 230,000 bopd, connects to the partnership's Ship Shoal 332B junction platform, giving Shenzi producers access to the Enterprise-operated Cameron Highway Oil Pipeline and Poseidon Oil Pipeline systems.

BHP Commences Production on Shenzi Field
Type: Production Start

Mar. 2009 - BHP commenced production from the Shenzi oil and gas field spanning Green Canyon Blocks 609, 610, 653, and 654. Initial field development includes seven subsea wells tied-back to the TLP, with full field development expected to expand to a total of 15 producing wells and future water injection wells. The Shenzi TLP is located in roughly 4,300 feet (1,311 meters) of water on GC Block 653, making it the second deepest TLP in the world.

Hess Expects Production Start for Shenzi in the First Half of 2009
Type: Status Update

Dec. 2008 - Hess Corporation released their 2009 capital and exploratory budget which included an expected production start up for its Shenzi field in the first half of 2009. Additional production wells are expected in the second half of 2009.

BHP Resumes Production at Shenzi
Type: Status Update

Sep. 2008 - BHP Billiton announced that oil production has been safely restored at its Shenzi field in the deepwater Gulf of Mexico after Hurricane Ike caused the company to shut-in production. Production is ramping up as the export pipelines are able to take the increasing volumes. Natural gas production will be brought on as pipelines and infrastructure along the Gulf Coast permit. BHP Billiton Petroleum also assessed the newly installed Shenzi Tension Leg Platform in the deepwater Gulf of Mexico and found no damage that would hamper our ability to resume the construction process. Shenzi is scheduled to achieve first oil by the middle of calendar year 2009 with a nameplate capacity of 100,000 barrels of oil per day and 50 million cubic feet of gas per day. The two deepwater drilling rigs under contract to BHP Billiton Petroleum, the GSF C.R. Luigs drillship and the Development Driller I semisubmersible, are back on location and have re-started their operations.

Dockwise Successfully Delivers Shenzi TLP Hull
Type: Status Update

Apr. 2008 - Dockwise has successfully delivered the Shenzi TLP hull to Kiewit Offshore Services in Ingleside, Texas for BHP Billiton.

BHP Qtrly Exploration & Development Activities Report
Type: Status Update

Jan. 2008 - On schedule and budget. Hull fabrication completed and ready for sail away to Gulf of Mexico, US.

Hess Approves $4.4 Billion Capital and Exploratory Budget for 2008
Type: Development Activity

Dec. 2007 - Shenzi - a deepwater Gulf of Mexico oil and gas development (28 percent working interest). Production wells will be drilled throughout the year and the tension leg platform and topsides will be installed in the second quarter. Production is on schedule to commence by mid-2009.

Saipem America Wins Shenzi Work
Type: Pipeline Construction

Aug. 2007 - Saipem America has been awarded the pre-crossing mattresses installation of the 20" Shenzi Oil Export Pipeline Project by Enterprise Field Services, LLC. The Shenzi Field development is located in 4,400 feet of water, approximately 120 nautical miles offshore, in the Gulf of Mexico.

Oceaneering to Supply Umibilicals to Pyrenees Project
Type: Subsea Equipment

Jul. 2007 - "We also are currently under contract to BHP Billiton to supply umbilical distribution connection equipment for the initial Shenzi field development in the Gulf of Mexico."

Product Development First for PolyOil
Type: Contract Award

May. 2007 - PolyOil has begun the delivery of 220 Poly-Tector clamps to the Gulf of Mexico, in the first stage of a deal with a multi-billion dollar international conglomerate. The contract, worth in excess of £250,000, will eventually see PolyOil deploy more than 880 clamps across eight wells in the Shenzi field. Stage two will incorporate a further seven wells.

BHP Confirms Discovery of Shenzi-3 Appraisal Well
Type: Appraisal Operations

Nov. 2004 - BHP Billiton announced the results of its second appraisal well on the Shenzi discovery in the deepwater Gulf of Mexico. Shenzi-3 began drilling in May 2004 with GlobalSantaFe's drillship CR Luigs on Green Canyon Block 653. The discovery is located approximately 14 kilometers (9 miles) northwest of the company's Atlantis field, which is currently in development.

BHP Discovers Oil with Shenzi-2 Appraisal Well
Type: Appraisal Operations

Nov. 2003 - BHP Billiton reports the results of its first appraisal well on the Shenzi field, discovered last year in the deepwater Gulf of Mexico. Shenzi-2 began drilling on September 22, 2003, on Green Canyon Block 653 with the BHP Billiton operated drillship CR Luigs. The well is located in water depths of 4,238 feet and was drilled to a total depth of 25,500 feet; encountering approximately 500 feet of net oil pay in a 1,250 foot gross hydrocarbon column of lower Miocene reservoir sandstones.

BHP Makes Deepwater Gulf of Mexico Discovery
Type: New Discovery

Nov. 2002 - BHP Billiton has made a hydrocarbon discovery with an exploration well on its Shenzi prospect in the deepwater Gulf of Mexico. The well has reached a measured depth of 26,607 feet and has encountered a gross hydrocarbon column of 465 feet with 140 feet of net pay. The water depth is 4400 feet.

Shenzi TLP
Producing - Mar 2009 to -

Under Construction - Jun 2006 to Mar 2009

Shenzi will be BHP Billiton’s second standalone, operated deepwater facility in the GoM.

Shenzi
Producing - Under Dev. - Mar 2009 to -

Repsol struck more oil in two wells on the Shenzi field in what a company spokesman calls a "fairly sizable" oil find.

Under Development - Jun 2006 to Mar 2009

BHP Billiton has approved the development of the oil and gas reserves at the Shenzi field in the Gulf of Mexico. Production is expected mid CY2009.

Discovery (Appraised) - Nov 2004 to May 2006

Drilling is currently underway on another sidetrack well to collect additional reservoir data and further corroborate the information found from the first two penetrations at Shenzi-3. Further appraisal drilling is planned to more fully delineate the reservoir.

Appraisal Drilling - Sep 2003 to Nov 2004

Shenzi-2 appraisal well on GC653 was drilled to a total depth of 25,500 feet, encountering approximately 500 feet of net oil pay in a 1250 foot gross hydrocarbon column of lower Miocene reservoir sandstones. Shenzi-3 appraisal well successfully encountered 330 feet of net oil pay in a 125meter gross hydrocarbon column. Drilling is underway on another sidetrack well to collect add'l reservoir data.

Discovery (Drilled) - Dec 2002 to Sep 2003

The Shenzi discovery reached a measured depth of 26,607 feet and encountered a gross hydrocarbon column of 465 feet with 140 feet of net pay. The significance of the well will be assessed following further evaluation of drilling and resource data. Appraisal drilling will be necessary to determine the size of the find.

Exploratory Drilling - Nov 2002 to Dec 2002

Discovery made on GC654 using GSF CR Luigs.

Update History
The SubseaIQ Team works everyday to provide you with the latest information on the offshore field development market. The following table provides you with a detailed record of each addition and update made to this project by the SubseaIQ team.
UPDATE TYPE DATE DAYS AGO
Field Updated Jan 12, 2012 524
Facility Updated Jan 12, 2012 524
Activity Added Jan 12, 2012 524
Project Description Updated Oct 27, 2011 601
Field Updated Jun 07, 2011 743
Activity Added Jun 07, 2011 743
Project Description Updated May 05, 2011 776
Field Status Updated Oct 30, 2009 1328
Field Status Added Oct 30, 2009 1328
Field Updated Oct 30, 2009 1328
Activity Added Oct 30, 2009 1328
Facility Updated Sep 10, 2009 1378
Field Updated Sep 10, 2009 1378
Activity Added Sep 10, 2009 1378
Facility Updated Jul 17, 2009 1433
Field Updated Jul 17, 2009 1433
Activity Added Jul 16, 2009 1434
Facility Updated Apr 23, 2009 1518
Facility Status Added Apr 23, 2009 1518
Activity Added Apr 02, 2009 1539
Field Updated Apr 02, 2009 1539
Activity Added Mar 25, 2009 1547
Field Status Added Mar 25, 2009 1547
Activity Added Dec 08, 2008 1654
Project Description Added Nov 24, 2008 1668
Activity Added Sep 25, 2008 1728
Activity Added Apr 02, 2008 1904
Field Status Added Feb 27, 2008 1939
Activity Added Jan 23, 2008 1974
Activity Added Dec 27, 2007 2001
Field Added Dec 13, 2007 2015
Facility Added Dec 13, 2007 2015
Field Status Added Dec 13, 2007 2015
Facility Status Added Dec 13, 2007 2015
Activity Added Aug 02, 2007 2148
Activity Added Jul 27, 2007 2154
Activity Added May 30, 2007 2212
Activity Added Nov 14, 2004 3139
Activity Added Nov 12, 2003 3507
Activity Added Nov 19, 2002 3865

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Facility Name Shenzi TLP
Duty Oil/Gas
Operator BHP Billiton
Current Status Producing since 2009
Host Type TLP
Water Depth 1,341 m / 4,425 ft
Dev.Cost $634,000,000
 
Region US
 
Location Green Canyon 654
 
Field Name Shenzi
Discovery Date Dec 2002
Block Green Canyon 609
Reserve Type Oil/Gas
Current Status Producing - Under Dev.
Production Start
Water Depth 1,341 m / 4,425 ft