MercoPress. South Atlantic News Agency

Repsol in significant oil discovery in Gulf of Mexico

Repsol has made a significant new oil find in the deepwater area of the Gulf of Mexico, in US waters. The discovery was made in the Buckskin well in Keathley Canyon, 300 kilometres offshore Houston.

Repsol is the operator of the exploratory work on this new find, where a 100-metre hydrocarbon column has been discovered that could be even higher at the top of the structure. The well is 10,000 metres deep in 2,000 metres of water. The consortium, in which Repsol has a 12.5% stake, is made up of Chevron (55%), Maersk Oil America (20%) and Samson Offshore Company (12.5%). The well indicates the existence of significant light and sweet oil resources. It is adjacent to and of a similar geological structure to the Chevron-operated Jack field. In the last three years, Repsol has significantly reinforced its position in the deep waters in the Gulf of Mexico, taking part in the development of the large Shenzi field after obtaining 73 exploration licenses. This area is amongst the most profitable and of highest potential deepwater licenses in the world. Exploration and production in this area is amongst the ten key growth projects in Repsol's 2008-2012 Strategic Plan, which contemplates total investment of 32.8 billion Euros, according to a company release. The Gulf of Mexico has an attractive and stable fiscal regime which has historically offered one of the highest rates of return of offshore drilling. "The area helps Repsol achieve its goal of increasing its presence in OECD countries". Repsol participates in the Shenzi field which is currently in the final stages of development and whose start-up is expected for 2009. In 2008 production started at the second well in the Gengis Khan field. Shenzi is one of the biggest discoveries to date in the Gulf of Mexico.