Byron opts for manned facility at South Marsh

Byron Energy is weighing a change in development concept for the South Marsh Island 71 (SMI-71) discovery, in the US Gulf of Mexico. The new plan sees the operator opting for a manned platform over an unmanned facility, says 50-50 joint venture (JV) partner Otto Energy.

Map of SMI-71, from Otto.

The duo procured a tripod platform in August, and started work to modify the facility. Further work undertaken by Byron in respect of the facility has led to the decision to modify the design concept, Otto said.

The proposed manned structure will have the capacity to produce 4500 b/d and 5 MMcf/d of gas. There is also access to the adjacent oil and gas sales trunk lines available on SMI-71, which will be used for export, once production starts. 

“Significant progress has already been made on the refurbishment of the jacket section of the platform and following completion of engineering design work, construction work on the deck portions will begin,” Otto said.

There has been an incremental cost associated with the proposed manned facility, according to Otto, which is estimated at US$3 million (net to Otto). However, the company said that the cost is more than offset by the benefit of reduced future operating costs and also the ability to deliver higher production rates and project economics. 

Initial plans for SMI-71 include the completion of the SMI-71 #1 well in the D5 Sand, with the anticipation of initial flow rates of 1500-2000 b/d (gross field production), similar to those recorded on the adjacent SMI-72 and SMI-73 blocks. 

After completion of the SMI-71 #1 well, Otto said that there is potential to drill up to four additional development wells, some of which will be able to target prospective resources in the B65 interval that has scope to double the present reserve base of the block.

Otto is awaiting Byron’s final proposed authority for expenditure and development plan. The final development plan is subject to JV approval.

Byron Energy operates SMI-71 with 50% stake. Otto Energy holds the remaining 50%.