EDC awards Horizon letter of intent for offshore pipeline

EDC Ecuador Ltd. has awarded Houston-based Horizon Offshore Inc. a letter of intent to install 42 miles of 12-in. gas pipeline as part of the Amistad development project in the Gulf of Guayaquil, Ecuador. EDC is a unit of Noble Affiliates Inc., Ardmore, Okla.


HOUSTON, July 30 -- EDC Ecuador Ltd. has awarded Houston-based Horizon Offshore Inc. a letter of intent to install 42 miles of 12-in. gas pipeline as part of the Amistad development project in the Gulf of Guayaquil, Ecuador.

EDC is a unit of Noble Affiliates Inc., Ardmore, Okla.

Horizon will use a pipelay-bury barge to install the line. Work will begin in the fourth quarter 2001.

The project should be complete in the first quarter 2002.

Horizon Offshore did not reveal the amount of the proposed contract, but said that the addition of the project brings its backlog to $64 million.

Earlier this month, Noble Affiliates said Amistad-7 well on Block 3 in the Gulf of Guayaquil tested 19.4 MMcfd of gas on a 32/64-in. choke at 3,208 psi of flowing tubing pressure from 172 ft of perforations. The well is part of a 4-well program on the block (OGJ Online, July 12, 2001).

Noble Affiliates operates the project and holds 100% working interest through subsidiaries Samedan Oil Corp. and EDC Ecuador Ltd. (OGJ, Oct. 9, 2000, p. 34). It plans to use the field's production to power a 240-Mw power facility.

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