LLOG brings Salamanca floating production unit online

The Salamanca development adds long-term production to the Gulf at a time of sustained demand for domestic energy supply, the company said.

LLOG Exploration Offshore, L.L.C. has started production from its Salamanca floating production unit (FPU) in the deepwater Gulf of Mexico, marking a milestone in the company’s latest development push. The project, located in Keathley Canyon 689 in about 6,400 feet of water, is producing from a well in the Leon field.

Additional production is expected to ramp up through the end of the year. A second Leon well and the first Castile field well are forecasted to come online in the fourth quarter, with another Leon well planned for completion in early 2026 and an additional Castile well scheduled later that year. LLOG operates the Salamanca FPU and both discoveries, with Repsol and O.G. Oil & Gas holding non-operating working interests.

Chief Executive Officer and President Philip Lejeune said the Salamanca facility represents the first successful refurbishment of a Gulf  production unit for commercial use. By redeploying an existing facility rather than constructing a new one, LLOG shortened development timelines and achieved significant environmental benefits.

“The project has a significantly positive environmental impact as it reuses an existing unit compared with abandonment, while also accomplishing about an 87% reduction in emissions compared to the construction of a new unit,” Lejeune said. “Major construction was undertaken in Texas and Louisiana shipyards rather than overseas, helping support domestic industry.”

LLOG became operator of the Leon field in 2019 through an agreement with Repsol, which also brought the Spanish energy company into the Castile field partnership. O.G. Oil & Gas joined in 2024, providing additional support for advancing development plans.

According to the companies, the project highlights their combined technical expertise and commitment to innovation in deepwater operations. The Salamanca FPU has processing capacity of 60,000 barrels of oil per day and 40 million cubic feet of natural gas per day.

The Salamanca development adds long-term production to the Gulf at a time of sustained demand for domestic energy supply. Lejeune said the achievement demonstrates LLOG’s ability to execute complex projects safely and efficiently.

“This is another example of LLOG’s proven ability to meet the challenges of operating in the deepwater Gulf and deliver a world-class facility that will help to meet the growing energy needs of our country,” he said.