Oil and natural gas production from the Gulf of Mexico Holstein spar ramped up last week, according to BP plc, the 50% owner and operator. At peak production, the facility will produce more than 100,000 bbl of oil and 90 MMcf/d of natural gas.

Holstein, which is also 50% owned by Shell EP Americas, is about 100 miles south of Grand Isle, LA, and is located in approximately 4,300 feet of water in Green Canyon Block 645. The spar is the largest of its kind in the world. Production began on Dec. 9 and will increase over the next year as additional wells are completed and brought online.

“It is exciting to see Holstein commencing production on schedule,” said David Eyton, vice president of BP’s Gulf of Mexico Deepwater Business Unit. “Holstein start-up marks a period of rapid technological advance in the deepwater, for BP and for the industry. Technology developed here is already benefiting later projects, both in the Gulf of Mexico and elsewhere in the world.”

The Holstein development consists of a truss spar, equipped with facilities for simultaneous production and drilling operations. Oil from Holstein will be transported via the Mardi Gras Transportation System to Ship Shoal 332B, where it will interconnect with the Cameron Highway Oil Pipeline System (CHOPS). Holstein gas will be exported to Ship Shoal 332A, where it will interconnect with Manta Ray Gathering System, and from there to the Nautilus Gas Transportation System into Louisiana.

Holstein was discovered by BP in 1999 using the Ocean America mobile offshore drilling unit. Construction of the spar components began in 2001 in Pori, Finland. The topsides were constructed in Morgan City, LA.

Current BP production in the deepwater Gulf of Mexico is more than 300,000 (net) boe/d, with daily production expected to increase to more than 500,000 boe/d by 2007.

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