Covington-based LLOG Exploration Co. and joint-venture partner Blackstone Energy Group have begun production from a massive, floating production system in the deepwater Gulf of Mexico.
Delta House floating production system lies about 130 miles southeast of New Orleans. The hub and platform can handle peak daily production of 100,000 barrels of oil and 240 million cubic feet of natural gas.
“First production at Delta House marks a significant milestone for LLOG,” said Scott Gutterman, LLOG president and chief executive officer.
LLOG expects to double its production when all of the wells come online this year, he said. It took only about three years to get from first discovery to first production.
It took 22 months to build Delta House, and the project involved 12,000 workers in 15 countries. The cost to drill the wells and build the floating production system was about $2 billion.
Delta House is the second semisubmersible production system LLOG has brought online in four years. The first was Who Dat.
“With continued development at Who Dat and Delta House coupled with five additional exploratory wells, 2015 stands to be a transformative year for production and reserve growth at LLOG,” Gutterman said.
LLOG is one of the largest privately owned energy companies in the United States. Its co-owners in the lease blocks for Delta House are the entities managed by Ridgewood Energy, which includes Riverstone-designated ILX affiliates; Red Willow Offshore LLC; Calypso Exploration LLC; Deep Gulf Energy II LLC; and Houston Energy.