Our portfolio of producing properties in the Gulf of Mexico consists primarily of one operated field and three fields operated by co-venturers. Our entry into the deepwater Gulf of Mexico began in the late 1980s, with partnerships in exploration wells. After we determined the production potential in the late 1990s, we set up strategic working agreements in the Ursa-Princess and K2 fields. In 2004, we began production from the Magnolia tension leg platform (TLP), which at that time, was the world’s deepest TLP in the world.
Our activities in the Gulf also include exploration.
The Magnolia Field is located approximately 165 miles south of the Louisiana coastline at a water depth of 4,700 feet. First production began in 2004. We operate the platform and have a 75% working interest.
In 2015, we produced net 3 MBOED from the Magnolia platform.
Located in the Mississippi Canyon area, the Ursa Field in the Mississippi Canyon area began producing in 1999. ConocoPhillips has a 16% non-operator interest in the field. The Ursa TLP, in water depth of 3,900 feet, is an established infrastructure hub.
The Princess development, discovered in 2000, is a northern subsalt extension of the Ursa Field. ConocoPhillips holds a 16% percent non-operator interest in the Princess. First production was achieved in 2002 via an extended-reach well from the Ursa TLP. In 2003, a three-well subsea tieback was added to the Ursa TLP.
In 2015, our net production from Ursa and Princess was 10 MBOED.
The K2 field consists of seven blocks in the Green Canyon area. ConocoPhillips is one of six co-owners of the K2 field, with a non-operator interest of 12.4%.
K2 is named for the world’s second highest mountain after Mount Everest. The field was discovered by ConocoPhillips in 1999. It was sanctioned for development in 2004 and is estimated to have more than one billion barrels of oil in place. First production began in 2005, and as of year-end 2015, we produced 1 MBOED net.
ConocoPhillips' total Gulf of Mexico acreage position at year-end 2015 was approximately 1.8 million net acres.
During 2015, the company conducted appraisal drilling at Shenandoah and Tiber. In early 2015, ConocoPhillips signed an agreement with BP and Chevron to jointly explore and appraise a 24-block area in Keathley Canyon, including the Gibson prospect and Tiber discovery. The agreement allows all three companies to combine technical strengths and financial resources to achieve efficiency through scale, reduce subsurface risk and improve the likelihood of commerciality.
Drilling of the non-operated Gibson and ConocoPhillips-operated Melmar exploration wells began in late 2015. The company expects to drill the Horus and Socorro exploration wells during 2016.