Shenandoah Field Development, USA

Shenandoah is an ultra-high-pressure oil and gas development located in the deepwater Gulf of Mexico, US.

Beacon Offshore Energy, an upstream production company formed by Blackstone Energy Partners in 2016, operates the field. Other project partners include HEQ Deepwater, a company formed by Quantum Energy Partners, and Israel-based Navitas Petroleum.

The Shenandoah partners reached final investment decision (FID) on the $1.8bn offshore development project in August 2021.

The offshore field began production in July 2025. Production was gradually ramped up, reaching target rate of 100,000 barrels of oil per day (bopd) / 117,000 barrels of oil equivalent per day (boepd) in October 2025.

Location and site details

The Shenandoah deepwater development is located in Walker Ridge blocks 51, 52, and 53 in the Gulf of Mexico, 257km off the coast of Louisiana, US. The project area spans 14,400 acres with water depths ranging between 1,700m and 1,900m.

Shenandoah discovery and appraisal details

Anadarko discovered the deepwater field by drilling the Shenandoah-1 exploration well in the Walker Ridge block 52 in 2009. Drilled to a total depth of 30,000ft into the Inboard Lower Tertiary Wilcox Play of the deepwater Gulf of Mexico, the discovery well witnessed 300ft net oil pay.

Following the discovery, Anadarko drilled five appraisal wells between 2012 and early 2017. It, however, suspended further appraisal activities at the field after the Shenandoah-6 appraisal well and sidetrack failed to find oil in the eastern portion of the field in 2017.

Shenandoah project background

Original partners of the Shenandoah project included operator Anadarko, ConocoPhillips, Cobalt International Energy, Marathon Oil, and Venari.

Anadarko and Conoco Phillips, the two major partners holding 33% and 30% interests respectively, withdrew from the project citing unsatisfactory appraisal results and weak commodity prices, in February 2018.

LLOG Exploration became the operator of the Shenandoah development, as affiliates of LLOG, Navitas Petroleum, and Beacon Offshore agreed to acquire 70% working interest in the project in April 2018.

Beacon Offshore assumed operatorship by acquiring LLOG’s 31% stake in the Shenandoah project in 2020.

Shenandoah field development plan

The initial field development involved drilling four subsea production wells, which are tied back to the Shenandoah floating production system (FPS) via a subsea manifold with dual flowlines and risers.

Hydrocarbons from the Shenandoah reserves, located at depths of approximately 30,000ft true vertical depth, are being extracted using 20,000psi high‑pressure technology.

The FPS is 91m long, 91m wide and 90m high.

The 25,000-metric tonne facility was constructed at Hyundai Heavy Industries Ulsan shipyard in South Korea. In December 2024, the Shenandoah FPS sailed from the shipyard to the US Gulf of Mexico, arriving at Kiewit Offshore Services’ fabrication yard in Ingleside, Texas, in February 2025 for final preparations and regulatory inspections.

It was subsequently wet‑towed and installed at the Shenandoah project site on Walker Ridge Block 52, located approximately 150 miles off the coast of Louisiana in about 5,800ft of water.

Shenandoah FPS was originally designed to produce and export approximately 100,000bopd.

However, the FPS capacity was expanded to 120,000bopd in 2025 to accommodate subsea tieback from Beacon-operated Monument discovery.

The capacity will be further expanded to 140,000bopd by early 2026, after Navitas and its partners sanctioned the next phase of development at Shenandoah.

Gas export agreement

Williams entered an export agreement with Beacon and ShenHai to provide offshore natural gas gathering and transportation services as well as onshore natural gas processing services for the Shenandoah development in June 2021.

An 8km-long offshore lateral pipeline will be constructed from the Shenandoah platform to Discovery’s existing Keathley Canyon Connector gas pipeline.

The natural gas output of the field will be processed at Discovery’s processing plant in Larose, Louisiana, whereas the natural gas liquids will be fractionated at Discovery’s Paradis plant in Louisiana.

Contractors involved

Law firm Latham & Watkins advised Navitas Petroleum on FID for the Shenandoah Project.

Subsea 7 bagged a subsea installation services contract valued between $150m and $300m for the Shenandoah development in January 2022.

The contractual scope includes engineering, procurement, construction, installation and commissioning (EPCIC) of subsea production structures, umbilicals, risers and flowlines. Subsea 7 is also responsible for the wet tow and hook-up of the semi-submersible FPS along with the installation of its mooring system.

Transocean was awarded a contract worth $252m to drill Shenandoah production wells using its ultra-deepwater drillship Deepwater in August 2021.

Korea Shipbuilding & Offshore Engineering (KSOE), a subsidiary of Hyundai Heavy Industries (HHI) Holdings, was awarded planning, procurement, construction and delivery contract worth KRW659.2bn ($576.44m) for the Shenandoah FPS in August 2021.

Vallourec, an industrial tube manufacturer based in France, was contracted to supply casing, tubing and accessories for the Shenandoah project in December 2021.

TechnipFMC was contracted by LLOG to supply subsea trees for the project in October 2019.

In January 2024, GATE Energy won a commissioning execution contract for the US portion of the Beacon Shenandoah FPS project. The scope of work included final pre-commissioning and commissioning planning and execution of the FPS following sail away from South Korea.

Danos supported Beacon Offshore Energy in operating and maintaining the FPS, ensuring safe, reliable, and efficient operations during this critical phase.

KOIL Energy Solutions, which specialises in deepwater energy production and distribution equipment and services, delivered key subsea solutions for the project.

In November 2025, Norway-based telecommunications company Tampnet deployed digital connectivity solution for Shenandoah development. The digital infrastructure will enable real-time monitoring of production and safety systems, support remote collaboration and data-driven decision-making throughout the full lifecycle of the field.