Shell Exploration & Production said it will spend nearly $1billion to develop three oil and gas discoveries that will add morethan 300 million Boe to the Gulf’s deep-water inventory. Thesethree projects, Angus, Europa and Macaroni, will increase thenumber of Shell working interest deep-water developments to 14, themost in the industry. Each project will be developed with subseasystems tied back to existing platforms.

“These three projects are further evidence of Shell’s commitmentto development of the significant hydrocarbon potential of thedeep-water Gulf of Mexico,” said Rich Pattarozzi, CEO of ShellDeepwater Development. “With these projects, we have been able tocapitalize on our growing infrastructure in the deep water to allowcost effective development of smaller discoveries to shorten thetime from start of development to first production.”

The Macaroni development, owned 100% by Shell, will consist ofthree subsea wells in 3,700 feet of water in Garden Banks Block602. Macaroni will tie back 12 miles to Shell’s Auger tension legplatform for production processing. Production is scheduled tobegin mid-year 1999. Peak production rates are anticipated to be35,000 b/d of oil and 65 MMcf/d of gas by late 1999.

The Angus development, a four-well subsea system in Green CanyonBlock 113 in about 2,000 feet of water, is a joint effort byoperator Shell, with an 80% interest, and Marathon Oil, with a 20%interest. Discussions are underway with Marathon to tie back thewells to Shell’s Bullwinkle fixed platform on Green Canyon Block65, about 12 miles away. Production is estimated to begin in thesecond quarter 1999, with peak production rates of 40,000 b/d ofoil and 60 MMcf/d of gas expected by year-end 1999. Talks are alsobeing conducted to tie back the wells on Marathon’s Green CanyonBlock 112, where Marathon has a 65% working interest and Shell hasa 35% working interest, to Bullwinkle.

Europa, in about 3,900 feet of water in Mississippi CanyonBlocks 934, 935, 890 and 891, initially will be developed usingfour subsea wells tied back to Shell’s Mars tension leg platform inMississippi Canyon Block 807 about 20 miles away. Shell, asoperator, has a 66% interest in the project, with BP Explorationand Conoco holding 33% and 1%, respectively. Production isscheduled to begin in early 2000. Peak production rates areanticipated to be 60,000 b/d and 45 MMcf/d of gas by early 2001.

Announced earlier this week, Texaco and Chevron are proceedingwith a $185 million subsea production system for their Geminiprospect, a subsalt project in the deep-water Gulf. Gemini is inMississippi Canyon Blocks 291, 292, and 247, about 90 milessoutheast of New Orleans in 3,400 feet of water. Texaco is operatorwith a 60% working interest. Chevron holds a 40% working interest.Projected recoverable reserves for the project are 250 to 300 Bcfof gas and 3 to 4 million barrels of condensate. Initial productionis scheduled for mid-1999, with peak daily rates of 150 to 200 MMcfof gas and 2,000 to 3,000 bbl of condensate.

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