Shell Exploration & Production Co. (SEPCo) said Wednesday that it hit natural gas in the deepest water depths yet from two Gulf of Mexico wells. The twin Coulomb wells began production June 23, and combined they eventually are expected to produce more than 100 MMcf/d.

The world record-breaking wells are located in Mississippi Canyon Blocks 657 and 613 and tied back via a 27-mile flowline to the BP-Shell Na Kika Floating Development System in Mississippi Canyon 474. The Na Kika system, which is located about 140 miles from New Orleans, achieved its first production late last year (see Daily GPI, Dec. 3, 2003).

The Coulomb C-2 well is currently producing about 65 MMcf/d and “continues to ramp up,” said Shell. SEPCo has a 100% interest in the C-2 well, and Brazil’s state-owned Petrobras America Inc. is a one-third partner in the C-3 well.

“These wells represent key industry and Shell firsts,” said Gaurdie Banister, SEPCo’s technical director, Americas Region. “On May 2, the C-2 well became the world’s deepest water depth completion in 7,565 feet of water. But records are made to be broken, and within 17 days, the C-3 well eclipsed the C-2 record depth by five feet, as it was set in 7,570 feet of water.”

Banister called the C-2 well a “Shell deepwater best” because it was completed in 13 days. “The ability to accomplish these firsts is the result of Shell’s extensive experience in the deepwater Gulf of Mexico over the past two decades, as well as its ability to work well with key contractors and vendors to plan and implement projects effectively while reducing cycle times.”

The announcement by Shell follows several significant deepwater discoveries in the past few years. According to the latest Minerals Management Service (MMS) report, future deepwater GOM exploration and production remains promising (see Daily GPI, May 6).

MMS noted that “traditional deepwater mini basin plays are far from mature, as several recent discoveries attest” and “lightly explored” reservoirs show that the deepwater GOM is an “expanding frontier.” According to a 2000 assessment by MMS, more than 50 billion recoverable boe remains to be discovered in the deepwater.

MMS reported that 11 discoveries have been found in water deeper than 7,000 feet in just two years. The first exploratory well has been drilled in water deeper than 10,000 feet, and the first deepwater well has been drilled to a depth below 30,000 feet.

There also has been a 51% increase in the number of producing deepwater projects since 2002, according to the MMS, and subsea gas production has increased 90% since December 2000.

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