HOUSTON, Dec. 17 -- Conoco Inc. said Monday it will develop Magnolia field in 4,700 ft of water in the Gulf of Mexico. The project will cost $600 million.
Magnolia, discovered in 1999, is on Garden Banks Blocks 783 and 784 180 miles south of Cameron, La.
Conoco and partner Ocean Energy Inc., which holds 25% of the field, expect Magnolia to produce 150 million boe.
Three existing holes will be converted to production wells and five more will be drilled to bring the field on full production.
A platform that can support a completion rig will be installed in the summer of 2004. The partners are considering either a tension-leg platform or a spar. They are negotiating for an offtake provider and route.
The production facilities will be rated at 50,000 b/d of oil and 150 MMscfd of gas. First production is expected in the fourth quarter of 2004, with peak production in 2005.
Conoco said Magnolia will be able to serve as a regional offtake point for future Conoco-operated developments or third party tie-ins in the southeastern Garden Banks.
Conoco has interests in 273 blocks in the deepwater Gulf of Mexico. It operates 194 of them.