BHP Billiton has announced first oil and natural gas production from the Shenzi development in the deepwater Gulf of Mexico. The tension leg platform has a nominal capacity of 100,000 barrels of oil per day and 50 million cubic feet per day of natural gas, on a 100% basis.

According to the company, the Shenzi facility is located approximately 195km off the Louisiana coastline and is installed in approximately 4,300ft of water on Green Canyon Block 653.

The Shenzi field comprises four blocks: Green Canyon 609, 610, 653 and 654. Initial field development includes seven subsea wells tied back to the tension leg platform (TLP), with full field development expected to expand to a total of 15 producing wells and future water injection wells.

The oil company said that crude oil is transported via a 20-inch diameter pipeline connecting to Ship Shoal 332 B, while natural gas will be exported via the Cleopatra pipeline, in which BHP Billiton has a 22% equity share.

Michael Yeager, CEO of BHP Billiton Petroleum, said: Shenzi joins the already producing Neptune field as the second BHP Billiton operated, standalone, deepwater facility in the Gulf of Mexico. Together with Genghis Khan, Atlantis and Mad Dog, the company has realized a good increase in production in the region after considerable investment and technical focus.