Independents dominate GoM

Jaime Kammerzell
Gulf of Mexico Editor
Offshore

Representatives from three independent operators and one from the Independent Petroleum Association of America (IPAA) kicked off the Offshore Technology Conference on May 2.

Charles Davidson, Noble Energy chairman, president, and CEO; Tim Parker, Dominion E&P senior vice president, exploration and production; G. Ross Frazer, ATP Oil and Gas Corp. vice president, engineering and director, UK projects; and Dan Naatz, director of Federal Resources, IPAA, promoted independents' role in developing the Gulf of Mexico.

Davidson pointed out the growing role independents have in the GoM. From 2000 to 2004, independents have represented 74% of deepwater discoveries, installed 87% of offshore structures, and submitted 68% of the March 2005 GoM lease sale high bids.

Parker supported Davidson's statistics with four bar graphs illustrating the independents' increasing role on the shelf and in deepwater. Independent operators now account for 90% of the total leases on the shelf and half of the leases in deepwater.

Frazier focused on advances in technology, particularly that of ATP. Most independents take existing technology and push it to its limits or employ it in new applications. This ingenuity aids independents in exploiting hard-to-reach hydrocarbons and saves time and money, he said.

The independents will continue aggressive production programs in the next few years. Davidson said Noble has three deepwater discoveries under development. Swordfish will come online in 2Q with expected net production of 10,000 Boe/d. Lorien will follow in late 1Q 2006 with expected production of 12,000 boe/d, and Ticonderoga will go online in early 3Q 2006. It is expected to produce 12,000 boe/d.

Dominion will continue to be active on the deep shelf and is working on its deepwater Black Beard field, which is expected to produce more than 1 tcf and its Thunder Hawk field, which is expected to produce 50-150 MMbbl. Dominion has drilled one well and is waiting for Loop currents to subside before drilling a second well.

ATP says it has a 97% success rate with 36 of 37 projects on production since inception. Its latest project, Gomez, is using a first generation semisubmersible with an upgraded mooring system. The field is in Mississippi Canyon block 711 in 3,000 ft of water, and the pipeline will position it for third party tie backs.

05/02/05