LLOG Exploration highlights recent milestones achieved for Salamanca FPU project

LLOG Exploration Company, a privately-owned exploration and production company focused on the deepwater Gulf of Mexico, has announced the achievement of several significant milestones in the construction of the Salamanca Floating Production Unit (FPU). Additionally, initial well operations at both Leon and Castile have been successfully completed, LLOG stated. LLOG is the operator of the Salamanca FPU, as well as the Leon and Castile discoveries with Repsol and O.G. Oil & Gas as non-operating working interest owners.

“LLOG has a long history of developing prolific projects in the GOM safely, efficiently and economically,” said Eric Zimmermann, Chief Operating Officer of LLOG. “We are pleased to be progressing another world class project and to have reached several important milestones while also optimizing financial flexibility through securing financing for the Salamanca project. The unique aspect of the Salamanca facility is that the FPU is the first refurbishment of a GOM facility that was in production and being brought into commerce as a producing asset again.”

The Salamanca project involves the refurbishment of a former GOM production facility, which is being transformed into an FPU with a capacity of 60,000 bopd and 40 million cubic feet of natural gas per day. This innovative approach aims to minimize environmental impact by reusing existing infrastructure and reduces time, ultimately enhancing economic returns.

The hull refurbishment was completed at Seatrium in Brownsville, TX and delivered to Kiewit’s yard in Ingleside, TX on October 17, 2024, marking a critical milestone in the project's timeline. In early November 2024, the new topside equipment and deck was successfully rejoined to the hull and final outfitting of the FPU will be completed in early 2025. This achievement brings LLOG closer to the project's mid-2025 production target.

All of the initial wells to support the Salamanca FPU have been successfully drilled and cased. This includes discovery wells drilled at Castile and Leon, with additional successful development wells drilled in 2023 and 2024. The final well finished drilling in September 2024 at the Leon Development (Keathley Canyon 686 #4), with better than expected results, encountering greater than 1,000 feet of high quality oil-bearing sands. The facility will be located in Keathley Canyon 689 in approximately 6,400 feet of water.

LLOG entered the Leon field as the operator in 2019 through an agreement with Repsol that also brought the global multi-energy company into the LLOG-operated Castile field, with the goal to accelerate plans and optimize the economics of developing both discoveries.