GULF OF MEXICO

The components for Popeye, Shell's natural gas development, are shown in testing shortly before installation last month. The subsea wellhead on the left is one of six that will be connected to the manifold (center in photo). Gas will then go to the flow line jumper, right before going to the Cougar platform 24 miles away.

• Annual platform installations and removals in the US Gulf of Mexico, according to the US Minerals Management Service.

Shell adds Mensa to its deepwater plate

Shell is moving ahead with development its Mensa gas project. Located in 5,400 ft of water, the development will exceed by nearly 2,000 ft, the current world record for deepwater production. Shell is the sole owner. Production will being in 1997 and is expected to yield about 300 MMcf/day of gas, boosting Shell's current Gulf of Mexico output by 25%.

Mensa will be a subsea development project with up to four wells located on the seafloor and connected by flowlines to a platform in shallower water 68 miles away. This connection will be the world's longest and will represent an important technological advancement in linking deepwater fields to existing production infrastructure on the continental shelf. The total development cost is expected to be $230-$290 million, depending on the number of wells identified in the final development plans. Ultimate recovery from the field is estimated at 720 bcf of natural gas. The subsea equipment will be manufactured by FMC Wellhead Equipment. The production control system will be manufactured by Kvaerner FSSL.

Gas sales begin from High Island 22L

Global Natural Resources in June initiated sales from High Island 22-L, located offshore Jefferson County in Texas state waters. GNR acquired the block in the March 1994 Texas Lease Sale. Since gas sales were initiated within 18 months of the lease sale, GNR has earned a reduced royalty of 20%. The well was brought on line with an initial daily rate of 10.3 MMcf/d of gas and 117 b/d of condensate with a flowing tubing pressure of 5,250 psi on an 18/64-inch choke. The well is producing from a freestanding caisson in 39 ft of water through a flowline to GNR's production platform in the adjacent block, High Island 23-L. GNR, as operator, has a 60% working interest. Apache has the remaining 40%.

Gas industry needs PURPA, says Galvin

Congressional repeal of the Public Utility Regulatory Act (PURPA) could mean a 5% decline in natural gas consumption, warns Ray Galvin, chairman of the Natural Gas Supply Association and president of Chevron USA Production. He told a gathering of natural gas producers that efforts to repeal PURPA Section 210 should be forestalled until competition is established.

"PURPA is not the best of all possible laws, but there are important positives in PURPA," said Galvin. "It introduced competition into electric generation, fostered innovative, cost-conscious companies that took advantage of the efficiencies inherent in using natural gas for power generation. Today 52% of independent power producers' generation is fired by natural gas." Independant power producers use 1.7 tcf/year of natural gas to generate electric power, 55% of which is sold to utilities. "If Section 210 of PURPA is repealed, many, possibly most, contracts between IPPs and utilities will be terminated or dramatically renegotiated."

Global Derrick maintains brisk pace during spring

Global Derrick Services maintained a brisk pace during the spring, completing several projects, including:

• Transportation and installation of a caisson for Shell Offshore in Eugene Island 167.

• Removal of an existing compressor and installation of a new compressor at Vermilion 237 for LL&E.

• Transportation and installation of a 4-pile jacket and deck for Hall-Houston Oil at West Delta 94 HA, and jacket installation at West Delta 94 HB, with deck scheduled for installation in mid summer.

• Salvage a tripod platform from Main Pass 107 for Kerr-McGee.

• Caisson deck installation for American Marine Construction at Eugene Island 72.

• Global Pipeline Services completed the installation of 30,000 ft of 4-in. pipeline for Shell at South Marsh Island 71 JC.

Currently, Global Pipeline Services is installing for Enron Oil and Gas 18,000 ft of 12-in. pipeline at Mustang Island 759. Global Derrick Services also will install two 4-pile platforms for Samedan Oil this summer - one at East Cameron 320, and one at Vermilion 332.

BRIEFS

• Petrobras: Petrobras America has contracted OPE to provide project management services for the design, fabrication, and installation of a 4-pile production platform with an associated pipeline in 260 ft of water. The location is Ship Shoal 301.

• Meridian Oil: Aker Omega has been contracted by Meridian Oil Offshore for structural design of a jacket for High Island A371. The jacket will be designed for a water depth of 395 ft and will have four legs with four skirt piles. The jacket will be designed for both a lifted and a launched installation scenario.

• Paragon: Paragon Engineering Services has been contracted by Taylor Energy to assist in the development of a safety and environmental management program for the Energy Department. The project is administered by BDM-Oklahoma, the management and operating contractor for the National Oil Program.

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