Exxon Mobil Corp. announced via a press release Monday that it has begun production with Hadrian South, its subsea production system in the Gulf of Mexico.
Hadrian South consists of a system of flowlines that run back to the Lucius truss spar operated by Anadarko and is ExxonMobil’s deepest subsea tie-back, placed in an area of the Gulf reaching depths of a mile and a half. The flowline system is expected to reach production levels of 200 million cubic feet of gas and 3,000 barrels of oil equivalent from its two connected wells.
ExxonMobil owns a 46.7 percent stake in Hadrian South as well as a 23.3 percent stake in the Lucius project. “Cooperating closely with Lucius operator, Anadarko, has facilitated the development of a deepwater resource that may not have been possible using a standalone approach,” said Neil W. Duffin, president of ExxonMobil Development Company. “Developing Gulf of Mexico oil and gas resources creates jobs, generates revenue and supports American energy security.”
The remainder of Hadrian South’s interest is owned by Petrobras (23.3. percent) and Eni (30 percent), though ExxonMobil retains the responsibility of operating the flowline system.
By developing Hadrian South as a subsea production system attached to the nearby Lucius platform, ExxonMobil and its partners were able to minimize cost and reduce overall infrastructure needs. Although offshore projects take years to plan, the move may turn out to be fortuitous for the project’s owners. With low oil production forcing onshore operations to stack rigs and lay off thousands of employees, it is only a matter of time before the effects of the slump begin to ripple through the offshore sector.