Gulf of Mexico

Technip Offshore will build the first cell Spar for the development of Kerr-McGee and Ocean Energy's Red Hawk deepwater field in Garden Banks block 877 in the Gulf of Mexico. First production from the natural gas field is set for 2Q 2004.

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Technip grabs Red Hawk cell Spar

Technip Offshore will build the first cell Spar for the development of Kerr-McGee and Ocean Energy's Red Hawk deepwater field in Garden Banks block 877 in the Gulf of Mexico. First production from the natural gas field is set for 2Q 2004. Estimated proven reserves exceed 250 bcf for the field, wich is located in 5,300 ft of water.

"This new cell Spar technology will allow us to capitalize on our deepwater prospects by reducing the reserve threshold needed for an economical platform development in deep waters," Luke R. Corbett, Kerr-McGee CEO, said.

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The first cell Spar, to be built by Technip Offshore, is destined for Kerr-McGee and Ocean Energy's Red Hawk field in the GoM.
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The 23,500-ft discovery well, announced in October 2001, encountered over 135 ft of gas and gas condensate pay in two zones. A successful up-dip appraisal sidetrack to the discovery encountered about 175 ft of gas and gas condensate pay.

The cell Spar will have an initial production capacity of 120 MMcf/d of gas, with ultimate capacity of 300 MMcf/d. Construction is expected to begin in the fourth quarter. Operator Kerr-McGee and partner Ocean Energy each hold 50% interest in the field.

Deepwater not played out

Calling the pessimists wrong, Shell Deep- water Services Director Mark Leonard said the deepwater still holds plenty of unfound reserves.

"There's a significant resource left to develop in the deepwater," he said during the Offshore Northern Seas conference in Norway in August.

Deepwater off Brazil is estimated to hold 12 Bboe, West Africa holds 17 Bboe, Gulf of Mexico 14 Bboe, Asia Pacific 7 Bboe, Northwest Europe 4 Bboe, and other regions of the world likely hold around 3 Bboe, Leonard said.

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"The opportunity is still out there, and it's immense," he said. Shell wants to turn deepwater into sustainable development, Leonard said. Additionally, the company is focused on subsea-to-beach technology.

"We're pushing it, and we're pushing it hard," he said, add-ing pigging technology has been a challenge.

Mountain from a molehill

Anadarko Petroleum reported a deepwater subsalt discovery appraisal well at K2 on Green Canyon block 562 that will lead to further appraisal drilling in 2003. Operator Agip Petroleum spudded the K2 No. 2 well in April in 3,900 ft of water. The well encountered 339 ft of oil pay in three sands in an untested fault block and reached target depth of 25,700 ft. In May 1999, the No. 1 well and sidetrack, drilled about 4,000 ft away, encountered one zone with about 60 ft of net pay. Anadarko said the well results from this discovery extend the limit of proven oil both laterally and downdip on the K2 structure.

Field partners are considering a separate structure or a tie-back to the Marco Polo hub for production. Initial results from the well indicate that commercial development is likely with first production as early as 2004, Anadarko said.

The K2 discovery is within 6 mi of Anadarko's Marco Polo field, which is being developed, at Green Canyon block 608. The Marco Polo TLP, to be installed in 4,300 ft water depth, is expected to be onstream in 2004. Anadarko holds 52.5%, Agip 18.2%, ConocoPhillips 16.8%, and Unocal 12.5% of the K2 find.

Cal Dive buys properties

Cal Dive subsidiary Energy Resource Tech-nology will buy for $15 million cash Amerada Hess' interests in seven Gulf of Mexico fields, six of which Amerada Hess operates. Houston-based ERT was also to assume the pro-rata share of decommissioning liabilities. ERT also bought Shell's 74.8% working interest in the South Marsh Island block 130 field for $12.2 million in cash and the assumption of Shell's pro-rata share of decommissioning liabilities.

The six Amerada Hess-operated fields, located in 85 to 225 ft of water, include 62 wells, seven platforms, and two caisson structures.

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"The expected timing of much of (South Marsh Island block 130) abandonment work is eight to nine years out," CEO Owen Kratz said. "This should provide ample opportunity for ERT to design and implement an aggressive well exploitation program."

ERT's East Cameron block 374 No. 1 well has been completed as a single selected completion in three zones from a subsea tree in 425 ft of water. Production is commingled from the lower two zones for output of 15.5 MMcf/d and 75 b/d. ERT acquired East Cameron block 374 from Murphy E&P Co. and Callon Petroleum Operating Co. earlier this year. Cal Dive said the well is the site of Baker Oil Tools' first GoM application of its InForce Intelligent Well System, which allows ERT to change zones via hydraulic controls on the production platform without having a rig re-enter the well. This type of completion also minimizes future well maintenance requirements.

Quatrain good news for Front Runner partners

Murphy Oil has set preliminary reserve estimates for its Quatrain prospect at 25-30 MMboe. The Green Canyon block 382 prospect is southwest of the Front Runner development area, which is set for first production in 2004. The discovery well, drilled to a measured depth of 25,939 ft, encountered more than 130 net ft of pay. The well will be cased as a producer to tie into the Spar facility being constructed for the Front Runner project. Operator Murphy holds 37.5%, Dominion Exploration & Production 37.5%, and Spinnaker Exploration 25% in Qua-train.

"We are encouraged by the discovery at Quatrain because it tested a seismic amplitude anomaly associated with a different salt ridge from our Front Runner and Front Runner South discoveries," Murphy CEO Claiborne Deming said. "This new field discovery enhances two adjacent drilling locations and certainly augurs well for our other larger prospects lying to the south and to the west of the Front Runner development."

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