GULF OF MEXICO

Currently, about 70% of the Gulf’s oil production and 40% of its gas come from leases in water depths greater than 1,000 ft (305 m). As of April 2007, the Gulf’s daily production was estimated at 1.3 MMbbl/d of oil and 7.7 bcf/d of gas.

Demand driving port expansion

Port Fourchon is expanding its waterfront property available for lease to keep up with demand from oil and gas companies. Construction on another 3,000 linear ft (914 linear m) of bulkhead along slip B in the Northern Expansion is under way. The $12-million project is funded by Louisiana Port Priority Grants, with the Port Commission funding 10% of that cost.

According to the port, even though construction of this waterfront property will not be complete for 18 to 24 months, it is already leased out to Cal Dive International, Deep Marine Technologies, Tiger Tanks, and Expert Riser Solutions. “We are building this property as fast as we can to accommodate the needs of the oil and gas industry,” says Davie Breaux, the port’s director of operations.

Adjacent to Expert Risers’ new waterfront property is 1,400 linear ft (427 liner m) of waterfront property leased by Gulf Offshore Logistics. North of GOL’s property is another 1,100 linear ft (335 liner m) of unleased bulkhead, which is under construction. This $5-million project is scheduled to be finished within the next two years.

Meanwhile, the port is planning construction of a new slip, C. The slip will be approximately 7,000 linear ft (2,134 linear m) long by 700 ft (213 m) wide. Pending construction and mitigation approvals, slip C is expected to be dredged by 2009.

Due east of Fourchon, The Venice Port Complex (previously named Louisiana Fruit Co.) also is aggressively marketing its waterfront property to support industry demand. It is targeting service, exploration, and production-related companies. The port claims its 1,500 acres of developed and undeveloped property provide the shortest travel time to well locations in the Gulf of Mexico. The port is marketing its developed land in groups of 1 to 10 acres, and a 38-acre deepwater site with over 3,500 ft (1,067 m) of dock space, which is expected to be available for lease in Dec. 2008.

The port also is working with parish and state officials to secure funding to increase the depth of Baptiste Collette Bayou to 27 ft (8 m) to provide access for deep-draft vessels supporting drilling and production in the eastern GoM.

Pompano redevelopment moving forward

Buccaneer Resources Llc. has signed a participation agreement with Houston-based AnaTexas Offshore Inc. and Australia-based Gawler Resources subsidiary Cottesloe Oil and Gas to move forward with the Pompano redevelopment project. Pompano is in Brazos block 446-L SE/4 in 54 ft (16 m) of water.

Drilling of a planned six wells on the field is expected to begin in 4Q 2007, followed by first production shortly thereafter. The $55-million redevelopment is expected to take 12 months, pending drilling results. The field has estimated reserve potential of 200 bcf of natural gas.

Buccaneer Resources recently acquired 65% interest in the project. Cottesloe owns 25%, and operator AnaTexas holds the remaining 10%.

Williams to build Perdido export system

Williams is investing $480 million in a new gathering, processing, and transportation system for dedicated production from Shell, Chevron, and BP in the Perdido foldbelt.

The new 184-mi (296-km) export system, Perdido Norte, will originate at thePerdido truss spar slated for Alaminos Canyon block 857 in 7,817 ft (2,383 m) of water and terminate at the Markham gas processing plant. Construction is scheduled to begin in Jan. 2008.

The Great White, Silvertip, and Tobago fields are expected to be the sources of initial production for the system. It will have capacity to accommodate future production from other Perdido foldbelt prospects and from potential tie-ins along the new pipeline route, according to Williams.

The natural gas gathering portion of the system includes 107 mi (172 km) of pipeline with capacity to move 265 MMcf/d. The pipeline will extend from thePerdido spar to Williams’ existing Seahawk gathering system. The crude oil pipeline segment is designed to move 150,000 b/d of oil 77 mi (124 km) from the spar to the Hoover Offshore Oil Pipeline System.

McMoran finds deeper pays at Flatrock

McMoran’s Flatrock discovery intersected three additional hydrocarbon bearing zones in the Operc section while deepening the well to 18,100 ft (5,517 m), according to the company.

Wireline logs indicated 30 net ft (9 net m) of sands over a 120-ft (37-m) gross interval in one sand. Logging-while-drilling tools found 41 net ft (12 net m) over a 153-ft (47-m) gross interval in two sands.

McMoran says these three zones are deeper than the five zones announced in July, which contained 189 net ft (58 net m) of hydrocarbon bearing sands over a combined 364-ft (111-m) gross interval above 16,500 ft (5,029 m) in the Rob-L section as indicated by wireline logs.

In total, the well has encountered eight zones with 260 net ft (79 net m) of hydrocarbon bearing sands over a combined 637-ft (194-m) gross interval. McMoran plans to deepen the well to 19,000 ft (5,791 m) to evaluate additional targets in the Operc section.

The Flatrock discovery is on OCS block 310 at South Marsh Island block 212 in 10 ft (3 m) of water. McMoRan operates the well with 25% working interest.

WesternGeco expands survey

WesternGeco has expanded its multi-client, wide-azimuth survey in the Gulf. The third phase of the E-Octopus project acquisition is under way. WesternGeco says it will add a fourth phase in Nov. 2007 and a fifth phase in 1Q 2008.

“We are currently conducting targeted magnetotelluric surveying in the most challenging imaging areas for all phases of the E-Octopus program,” says Aaron Gatt Floridia, vice president of WesternGeco Electromagnetics. “Previous pilot studies using marine magnetotellurics (MT) have successfully indicated salt thickness variation. Based on these results, we are offering the addition of integrated MT measurements as part of our WAZ service. This technology step-change and the project expansion will greatly improve the critical base salt and subsalt images required by our clients.”

E-Octopus began in July 2006 and has acquired more than 700 OCS blocks of wide-azimuth data. The third phase began in May 2007 and covers more than 450 blocks in Green Canyon. A second Q-vessel will join the acquisition survey in Nov. 2007.

The final deliverables will include anisotropic multi-azimuthal tomography, wavefield extrapolation demultiple, and shot domain WEM with angle gathers.

Technip wins Mirage subsea contract

Bluewater Industries Inc. has awarded Technip a subsea contract for the ATP-operated Mirage field in Mississippi Canyon block 941 in 4,050 ft (1,234 m) of water.

Technip’s work scope covers engineering for the welding and installation of two steel catenary risers and two oil and gas export flowlines, measuring 31 km (19 mi) and 52 km (32 mi) long. Also included is the fabrication and installation of subsea structures and jumpers and pre-commissioning.

The contract will be managed out of Technip’s Houston office. The flowlines and risers will be welded at the group’s spoolbase in Mobile, Alabama, in 1Q 2008, followed by installation with the company’s reel lay vesselDeep Blue and chartered vessel Geohold.

Keppel moving on Mexican sector

Mexico’s Perforadora Central SA de CV has contracted Keppel AmFELS Inc. to construct a $190-million jackup drilling rig for delivery by the end of 2009 to deploy in the Mexican sector of the GoM.

The new jackup will be built to the LeTourneau Super 116E design. With leg lengths of 511 ft (156 m), the rig can drill wells to 30,000 ft (9,144 m) in water depths of 350 ft (107 m). The jackup will be built at Keppel AmFELS yard in Brownsville, Texas.