Beacon Offshore Energy announced on July 25 that it has commenced oil and natural gas production from the Shenandoah field in the deepwater Gulf of Mexico. The company also announced it has sanctioned the development of the nearby Shenandoah South discovery.
Production from the first of four phase one wells began on July 25, with the company expecting to ramp up the wells during the third quarter to a target of 100,000 barrels of oil per day (bopd). A second phase of the development includes two additional wells and a subsea booster pump with the fifth Shenandoah producer expected to be drilled and completed by mid-2026, the company noted.
The newly sanctioned Shenandoah South development will be a subsea tieback to the Shenandoah floating production system (FPS) via a three-mile (4.8-kilometre) flowline. The project will include two wells, with initial production from the first well expected in the second quarter of 2028.
The Shenandoah FPS has a nameplate capacity of 120,000 bopd and 140 million cubic feet of gas per day. Beacon Offshore said it is designed as a regional host for discoveries that are expected to hold recoverable resources of nearly 600 million barrels of oil equivalent.