Oil production has started under budget and ahead of schedule at the Julia oil field in the Gulf of Mexico (GoM), Exxon Mobil Corp. (NYSE:XOM) said April 19. The first production well is now online and a second well will start production in the coming weeks.
The Julia development is located about 265 miles southwest of New Orleans in water depths of more than 7,000 ft. The initial development phase uses subsea tiebacks to the Chevron-operated Jack/St. Malo production facility, reducing the need for additional infrastructure and enhancing capital efficiency. Technology has also played a key role in the Julia development including the use of subsea pumps that have one of the deepest applications and highest design pressures in the industry to date.
The Maersk Viking drillship is currently drilling a third well, which is expected to come online in early 2017. Production results will assist in the evaluation of additional wells included in the initial development phase, which has a design capacity of 34,000 barrels per day of oil.
Discovered in 2007, the Julia field comprises five leases in the ultra-deepwater Walker Ridge area of the GoM. ExxonMobil, the operator, and Statoil Gulf of Mexico LLC each hold a 50% interest in the Julia unit.
ExxonMobil is on track to start up 10 new upstream projects in 2016 and 2017, adding 450,000 oil-equivalent barrels per day of working-interest production capacity. The company is enhancing resource value through production optimization, technology application and cost management.
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