Beacon Offshore’s Status Projected to Rise Following Shenandoah Project FID

Once onstream, production from Shenandoah is expected to catapult Beacon Offshore Energy from its current position as the 20th-largest producer in the U.S. Gulf of Mexico to the 10th spot, says Wood Mackenzie analyst Mfon Usoro.

Beacon Offshore’s Status Projected to Rise Following Shenandoah Project FID

News of the FID was announced alongside the award of a $225 million contract to Transocean Ltd. for its newbuild ultradeepwater drillship, the Deepwater Atlas(Source: Transocean Ltd.)

Beacon Offshore Energy’s Shenandoah development in the U.S. Gulf of Mexico received project sanction on Aug. 25, which, once onstream, analysts project will be transformational for the privately held E&P company.

“All eyes will be on Beacon as it executes the 20,000 psi project,” commented Mfon Usoro, senior research analyst at Wood Mackenzie, in an emailed statement. “We have seen other smaller companies like LLOG take on successful Paleogene projects including Buckskin.”

Once onstream, earmarked for 2024, production from Shenandoah is expected to catapult Beacon from its current position as the 20th-largest producer in the U.S. Gulf of Mexico to the 10th spot, according to Usoro.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.