LLOG Exploration Offshore has brought the Salamanca Floating Production Unit (FPU) online in the deepwater U.S. Gulf of Mexico, achieving first oil from the Leon field in Keathley Canyon Block 689. The facility, located in 6,400 ft of water, marks the first reuse of a former Gulf production unit repurposed for new development.
Initial output began from a previously drilled Leon well, with additional production expected from a second Leon well and the first Castile field well in late 2025. A third Leon well and another Castile well are planned for 2026.
The refurbished Salamanca unit has capacity for 60,000 bopd and 40 MMcfd. By modifying an existing production facility rather than constructing new infrastructure, LLOG cut time to market and reduced emissions intensity by nearly 90% compared with a newbuild. Much of the project’s major construction work was completed in Texas and Louisiana yards.
“LLOG is very pleased to have recently initiated production at the Salamanca FPU with a well from the Leon field,” commented Philip Lejeune, CEO and President of LLOG. “Production will continue to ramp up as we add additional producing wells from both the Leon and Castile fields. The project has a significantly positive environmental impact as it reuses an existing unit compared with abandonment of the unit, while also accomplishing approximately an 87% reduction in emissions impact compared to the construction of a new unit.”
LLOG became operator of the Leon and Castile fields in 2019 through a deal with Repsol, who holds a 50% non-operating interest in Leon and 35.62% in Castile, and a 2.5% stake in the Salamanca FPU. O.G. Oil & Gas joined the partnership in 2024. Combined, the developments are expected to deliver hundreds of millions of barrels of recoverable resources and add long-term output to the Gulf of Mexico portfolio.
