NGI The Weekly Gas Market Report / NGI All News Access

Joint Ventures Work Together In $1.2 B GOM Project

Joint Ventures Work Together In $1.2 B GOM Project

East Breaks Gathering Co., a new joint venture between Leviathan Gas Pipeline, ANR Pipeline Co., and Natural Gas Pipeline Co. of America, said last week it is taking part in a $1.2 billion Gulf of Mexico joint development project between Amoco and Exxon. East Breaks has agreed to build, operate and service a new pipeline extending from Amoco and Exxon's western Gulf facility to an interconnect that feeds ANR's pipeline. Construction of the new pipeline and the producer's deep-water drilling facility is expected to be finished in mid-2000. Estimated reserves in the area were not disclosed.

The $90 million, 85-mile, 20-inch pipeline will have a design capacity of 400 MMcf/d. It will extend from the Exxon and BP Amoco facility in Block 25 of Alaminos Canyon, located 160 miles south of Galveston, to a point of interconnection with the existing High Island Offshore System at High Island Block A-573. All the gas will be drawn from the Diana and Hoover prospects, an 11-block area covered by this facility, and will be dedicated for transportation service on the High Island system.

"This is good news for our shippers. There is a lot of gas in those blocks. I've heard as much as 1 Tcf." said Joe Martucci, an ANR spokesman.

East Breaks Gathering Co. was formed specifically for this project. "The size and the scope of this project warrants its own company," Martucci added. East Breaks, which is run by a committee staffed by members of the participating companies, has contracted ANR Pipelines to operate the pipeline.

"This is by far the largest GOM project we're involved in," said Bob Davis, an Exxon spokesman. "Our intentions for the Diana/Hoover prospects were announced last April, and we think it will be very profitable." Davis added the two companies expect to have 325 MMcf/d running through the pipeline by the end of its second year in service.

A 75-story, 50-yard wide deep draft caisson vessel (DDCV) is presently under construction in Houston. "Right now, we're in the fabrication stages of both the hull and the topside." Once in place, Davis said it will be able to drill through 4,800 feet of water, "and several thousand feet more."

John Norris

©Copyright 1999 Intelligence Press, Inc. All rights reserved. The preceding news report may not be republished or redistributed in whole or in part without prior written consent of Intelligence Press, Inc.

Comments powered by Disqus