Repsol bringing drillship to US Gulf of Mexico

HOUSTON, July 22, 2015 – Repsol is moving a contracted drillship from its West Africa operations to explore a Lower Tertiary discovery in the US Gulf of Mexico. The Rowan Renaissance will drill an appraisal well in the Keathley Canyon block 686. Repsol, Spain’s largest oil producer, expects to spud the well in the third quarter of 2015.

Pre-drill estimate put Leon’s resources at between 112 million and 180 million barrels of oil equivalent. Repsol is the operator of block 686 and holds a 60-percent stake, with Colombia’s state-owned Ecopetrol owning the remaining 40 percent.

The move follows the success of the Leon discovery well, drilled in 2014, that hit 150 metres of net pay with a 400-metre column in both upper and lower Wilcox sands. The ultra-deepwater well was drilled in 1,865 metres of water to reach a total depth of 9,684 metres. The Leon appraisal well is targeted for a depth of 9,450 metres.

Repsol has contracted the Rowan Renaissance through April 2017, at an initial reduced daily rate of $620,000 for the first year, and $630,000 for the second. Those rates apply only to the US Gulf. If the drillship moves elsewhere, the rates will go up to $650,000 and $660,000, respectively.

Repsol has indicated that once the Rowan Renaissance completes the appraisal well, it will be used to explore the company’s other assets in the US Gulf. Repsol’s portfolio in the area include Wilcox prospects Mollerusa in Walker Ridge and Salvatori in Keathley Canyon.

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