SBM Offshore Announces Thunder Hawk Tiebacks

 

SBM Offshore is pleased to announce it has signed a Production Handling Agreement (PHA) with Noble Energy to produce the Big Bend and Dantzler fields to the Thunder Hawk DeepDraft (TM) Semi located in 6,060 feet of water in the Gulf of Mexico (GoM).

Production fees associated with produced volumes are estimated to lead up to projected revenue of US$400 million to be delivered over the ten year primary contract period. First oil from Big Bend and Dantzler are expected in late 2015 and first quarter 2016 respectively.  At these levels both fields will utilize a maximum of 85% of total daily asset capacity, and brownfield construction to upgrade the facility will be handled by Noble Energy.

The Big Bend field is 18 miles from the Thunder Hawk platform in 7,200 feet of water in Mississippi Canyon Block 698.  Noble Energy operates a 54% working interest in Big Bend alongside W&T Energy VI, LLC with 20%, (a wholly owned subsidiary of W&T Offshore Inc.), Red Willow Offshore, LLC with 15.4% and Houston Energy Deepwater Ventures V, LLC with 10.6%.

The Dantzler field is 7 miles from the Thunder Hawk platform in 6,580 feet of water in Mississippi Canyon Block 782.  Noble Energy operates Dantzler with a 45% working interest.  Additional interest owners are entities managed by Ridgewood Energy Corporation (including ILX Holdings II LLC, a portfolio company of Riverstone Holdings, LLC) with 35% and W&T Energy VI with 20%.  Big Bend and Dantzler will be developed via a dual pipe-in-pipe loop system.

The Thunder Hawk DeepDraft(TM) Semi, installed in July 2009, was developed as a Steel Catenary Riser (SCR) friendly floater solution.  The deck and hull can be integrated quayside avoiding costly offshore lifting and system commissioning operations.

SBM CEO Bruno Chabas noted: "SBM Offshore is pleased that the Thunder Hawk platform allowed for a cost effective development solution for Noble Energy and its partners.  The deepwater semi solution offers numerous advantages for subsea developments including reduced development capital, lower operating costs and an accelerated development schedule.  This confirms the strategic value of the platform for deepwater Gulf of Mexico production, and we are excited to be offering valuable solutions in supporting the development of the Big Bend and Dantzler fields."