Beacon fires up US offshore oil project

US independent Beacon Offshore Energy has started oil production from its fast-tracked Winterfell project in the Green Canyon area of the US Gulf of Mexico from two development wells that were completed earlier this year, co-venturer Kosmos Energy on Wednesday confirmed.A third well at Winterfell is currently being drilled and is expected to be online by the end of the third quarter of 2024.

The three initial wells are expected to deliver gross production of approximately 20,000 barrels of oil equivalent per day.The first phase of the Winterfell development involved the installation of a subsea production template that was tied by a 13-mile pipeline to the Heidelberg spar platform operated by Occidental Petroleum.

“The start-up of Winterfell is another significant milestone for Kosmos as we continue to deliver the projects to achieve our growth targets by year-end 2024. With high margin barrels, low carbon intensity and a quick expected payback, Winterfell has the right characteristics for Kosmos’ portfolio,” said chief executive Andrew Inglis.“Kosmos is eager to continue developing the Greater Winterfell area which we believe has significant future upside potential,” said.

The first development phase, with five wells in total, is expected to deliver around 100 million barrels of oil equivalent with upside from subsequent phases.

However, the total gross resource at Greater Winterfell is estimated to be up to 200 million boe.Kosmos has a 25.04% working interest in the Beacon-operated project. The other partners in Winterfell are US independents Westlawn Americas Offshore, Red Willow, Alta Mar Energy and CSL Exploration.

Kosmos in May said that its total net production in the first quarter of 2024 averaged approximately 66,700 boepd, representing an approximately 13% increase compared to the first quarter of 2023.Most of that production — 43,800 boepd — came from the company’s two major offshore development projects in Ghana.