The Atwater Valley Producers Group, consisting of Anadarko Petroleum Corporation (NYSE:APC), Devon Energy Corporation (NYSE:DVN), Eni (NYSE:E) and Hydro (NYSE:NHY), along with the owners of the Independence Hub, Enterprise Products Partners L.P. (NYSE:EPD) and Helix Energy Solutions Group, Inc. (NYSE:HLX) today announced that first production from the record-setting Independence Hub project has been achieved on schedule and within budget.
Located in 8,000 feet of water on Mississippi Canyon block 920, approximately 123 miles southeast of Biloxi, Miss., the Independence Hub is the deepest production platform ever installed and also is the world’s largest offshore natural gas processing facility.
Natural gas production through the Hub began on July 19, 2007, from the first of 15 subsea wells located in 10 anchor fields. The producers expect to ramp up production toward the Hub’s capacity of 1 billion cubic feet of natural gas per day (Bcf/d) by late 2007.
“The Independence project is a remarkable accomplishment by our industry,” Anadarko Chairman, President and CEO Jim Hackett said. “It is a true testament to the collaboration of the partners and the ingenuity of the individuals who worked to deliver these once unreachable resources to American consumers. Together we achieved first production on time and within budget from a world-record-setting facility in an ultra-deep area of the Gulf where previously there was no infrastructure.”
First sales were received from the Atlas #1 well located on Lloyd Ridge block 50. The well is expected to ramp up to a rate of approximately 50 MMcf/d over the next week. The block was awarded as a result of Lease Sale 181 in 2001, which opened a new area of the eastern Gulf of Mexico to exploration. Most of the additional 14 wells have been completed and flow-tested -- the majority of which demonstrated flow rates above 50 MMcf/d -- and will be brought on stream one at a time during 2007.
The Independence Hub is a 105-foot, deep-draft, semi-submersible platform with a two-level production deck. The natural gas processed through the Hub when operating at full capacity represents an increase of more than 10 percent in supplies from the Gulf of Mexico. The platform is operated by Anadarko and owned 80 percent by Enterprise and 20 percent by Helix. Anadarko has reserved approximately 61 percent of the capacity on the Hub, Eni approximately 20 percent, Hydro 12.5 percent and Devon 6.5 percent.
The Independence Trail pipeline, 100-percent owned and operated by Enterprise, connects the Hub platform to onshore markets via an interconnect with the Tennessee Gas Pipeline at Enterprise’s West Delta block 68 shallow-water manifold platform. The pipeline is approximately 134 miles long, 24 inches in diameter and has the capacity to transport up to 1 Bcf/d.
The Independence project set numerous world records during its construction and installation, which include:
“We are proud to be associated with this groundbreaking project and all of the individuals whose contributions have set new standards in offshore engineering and technical achievement,” said Enterprise President and CEO Dr. Ralph S. Cunningham. “We’re confident that Independence will serve as the blueprint for future deepwater development and a model of strong teamwork.”
Statements in this news release regarding the companies’ or managements’ intentions, beliefs or expectations, or that otherwise speak to future events, are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include those statements preceded by, followed by or that otherwise include the words “expected,”“will” or similar words. In addition, any statements regarding possible commerciality, development plans, capacity expansions, drilling of new wells, future production rates, and changes in any of the foregoing are forward-looking statements. Future results and developments discussed in these statements may be affected by numerous factors and risks, such as the accuracy of the assumptions that underlie the statements, the success of the oil and gas exploration and production programs, the price of oil and gas, drilling risks, uncertainties in interpreting engineering data, demand for consumer products for which the companies’ oil and gas businesses supply raw materials, the financial resources of competitors, changes in laws and regulations, the ability to respond to challenges in international markets (including changes in currency exchange rates), political or economic conditions in areas where the companies operate, trade and regulatory matters, general economic conditions, and other factors and risks identified in the Risk Factors section of the companies’ Annual Reports on Form 10-K and other U.S. Securities and Exchange Commission filings. Actual results and developments may differ materially from those expressed or implied in this news release.
Details on Anchor Fields:
Atlas and Atlas NW (Lloyd Ridge blocks 5/49/50)
Anadarko discovered the Atlas field in June 2003 in 9,000 feet of water. A satellite discovery, Atlas NW, followed in January 2004. Anadarko holds a 100-percent interest in the fields.
Jubilee (Atwater Valley blocks 305/349 and Lloyd Ridge blocks 265/309)
Anadarko discovered the Jubilee field in April 2003 in 8,800 feet of water. Anadarko holds a 100-percent interest in the field.
Merganser (Atwater Valley blocks 36/37)
Merganser was discovered in December 2001 by a subsidiary of Anadarko. It is located in a water depth of 7,900 feet. Anadarko operates the field with a 50-percent working interest. Devon Energy holds the remaining 50-percent working interest.
San Jacinto (DeSoto Canyon blocks 618/619)
Natural gas was discovered at the San Jacinto field in April 2004 in 7,850 feet of water. Eni operates the field with a 53.3-percent working interest. Hydro holds a 26.7-percent working interest and Anadarko has a 20-percent working interest.
Spiderman (DeSoto Canyon blocks 620/621)
Anadarko discovered the Spiderman field in November 2003 in a water depth of 8,087 feet. Anadarko is the operator and holds a 45-percent working interest. Eni holds a 36.7-percent interest and Hydro holds an 18.3-percent interest.
Vortex (Atwater Valley blocks 217/261 and Lloyd Ridge blocks 177/221)
The Vortex field was discovered in December 2002 and is located in a water depth of 8,344 feet. Anadarko holds a 100-percent interest in the field.
Mondo NW (Lloyd Ridge blocks 1/2)
Anadarko discovered the Mondo NW field in December 2004 in approximately 8,300 feet of water. Anadarko operates Mondo NW with a 50-percent working interest. Murphy Exploration & Production Company holds the remaining 50-percent working interest.
Q (Mississippi Canyon blocks 960/961/1004/1005)
The Q field was discovered in June 2005 in 7,925 feet of water. Q is operated by Hydro with a 50-percent working interest. Eni holds the remaining 50-percent working interest.
Cheyenne (Lloyd Ridge block 399)
Anadarko discovered the Cheyenne field in January 2005. It has the world’s deepest subsea production tree in approximately 9,000 feet of water. Anadarko holds a 100-percent interest in the field.
Anadarko Petroleum Corporation’s (NYSE:APC) mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. As of year-end 2006, the company had 3.0 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.
Devon Energy Corporation (NYSE:DVN) is an Oklahoma City-based independent energy company engaged in oil and gas exploration and production. Devon is one of the world's leading independent oil and gas producers and is included in the S&P 500 Index. For additional information, visit www.devonenergy.com.
Eni SpA (NYSE:E) is an integrated energy company, committed to growth in the activities of finding, producing, transporting, transforming and marketing oil and gas. In all areas in which the company operates, it can boast an excellent level of competence and strong international market positions. Eni is active in about 70 countries with a staff of 73,572 people and the company is listed on both the Milan and the New York (NYSE) stock exchanges. Visit www.eni.it.
Enterprise Products Partners L.P. (NYSE:EPD) is a publicly traded partnership with an enterprise value of more than $19 billion that provides midstream energy services to producers and consumers of natural gas, natural gas liquids and crude oil in North America. Enterprise transports natural gas, NGLs and crude oil through more than 35,000 miles of onshore and offshore pipelines. Services include natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil transportation and offshore production platform services. For more information, visit Enterprise on the web. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP, LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE), a publicly traded GP partnership with an enterprise value of more than $6 billion. For more information on Enterprise GP Holdings L.P., visit www.enterprisegp.com.
Helix Energy Solutions (NYSE:HLX), headquartered in Houston, Texas, is an international offshore energy company that provides development solutions and other key life of field services to the open energy market as well as to our own oil and gas business unit. That business unit is a prospect generation, exploration, development and production entity. Employing our own key services and methodologies, we seek to lower finding and development costs, relative to industry norms.