There are about 90 announced Gulf deepwater prospects--the Gulf operators have been setting and surpassing records in water depth and length using new and improved proven technology. For purposes here, deepwater is defined as 1,000 feet of water or greater.

Deepwater Production Systems Overview
Shell's subsea development named "Mensa" in Mississippi Canyon, Block 731 set two world records in July 1997--a world water depth record for production at 5,300 feet and a world record of 68 miles for tieback distance to its host platform in West Delta Block 143. The"Ram-Powell" Tension Leg Platform (TLP), installed in May 1997 and holder of the previous Gulf water depth production record, is a Shell/Amoco/Exxon joint venture in 3,214 feet of water. Ram-Powell surpassed the 2,940-foot permanent drilling and production platform depth record set by Shell/BP on its "Mars" tension leg platform. 

In March 1999 Shell (and partners Exxon, BP, and Conoco) began production from another TLP for the "Ursa" project on Mississippi Canyon Block 809 in 3,916 feet of water.  It also sends its subsea Well production back to the HUB platform at West Delta 143. 

Kerr McGee (Oryx)/CNG's "Neptune" SPAR platform, in Vioska Knoll Block 826 (1,930-foot waters), is but one example of new platform technology used in Gulf production.  It represents the world's first production SPAR and was brought on production in 1997.   A second SPAR system in the Gulf ("Genesis") was brought on production by Chevron U.S.A. (with Exxon and Fina) in 1998 on Green Canyon Block 205 in 2,597 feet of water. 

A third SPAR is in development by Exxon for its Diana/Hoover prospect. Production is expected to commence in early 2000. British-Borneo Exploration, Inc. has installed the world's first mini-TLP on Ewing Bank Block 965 in 1,700 feet of water on their "Morpeth" project. British-Borneo's mini-TLP was brought on production in 1998.  Amerada Hess installed a compliant tower on its "Baldpate" project on Garden Banks Block 260 in 1,619 feet of water in 1998.

Production from Gulf deepwater reservoirs is also increasing. From 1994 through 1998 production of Oil rose 260 percent to 159 million barrels in 1998. As technology advances and costs are reduced, deepwater development projects will become more feasible, allowing companies to venture more into ultradeep waters--exceeding 5,000 feet water depths.

Deepwater Drilling Overview
Chevron U.S.A. set a then new world record water depth for drilling an exploratory well in August 1998 on Atwater Valley Block 118 in 7,718 feet of water.  The block is located about 175 miles southeast of New Orleans.  This eclipsed the previous record drilled in April 1996 in Alaminos Canyon Block 600 in 7,620 feet of water in the BAHA prospect, a joint venture owned by Shell, Amoco, Mobil, and Texaco. Many companies are poised to break the world record in the year 2000.

Deepwater drilling continues at a high pace in the Gulf; in November 1999, there were 32 (temporary and permanent) deepwater rigs simultaneously drilling in Gulf of Mexico water depths greater than 1,000 feet (305 meters).

Deepwater Safety
Drilling and producing safety in deepwater will require special attention by industry and the use of advanced training and management systems.  This section is meant only to highlight some concerns and efforts.  It is not meant to be a complete and detailed discussion. One important advance has been the issuance by the Internation Association of Drilling Contractors (IADC) of "Deepwater Well Control Guidelines."  A companion effort to this is a recently issued Notice to Lessees. 

Source: Mineral Management Services