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 in the Gulf of Mexico.

Offshore staff

TULSA, Oklahoma -- 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 in the Gulf of Mexico.

The new export system, dubbed Perdido Norte, includes 184 mi (296 km) of pipeline. It 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 77 mi (124 km) from the spar to the Hoover Offshore Oil Pipeline System.

"Building critical infrastructure for producers in strategic hubs is central to our plans for creating value in the deepwater GoM," says Alan Armstrong, president of Williams' midstream gas gathering and processing business.

8/3/2007

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