Williams to Gather, Process Deepwater Production
Williams has been selected in a "landmark transaction" to
install the infrastructure, including gathering lines and onshore
processing, to service new deep water development in the Nansen and
Boombang Fields in the East Breaks area of the Gulf of Mexico.
Williams was selected by operator Kerr-McGee Oil & Gas,
Enterprise Oil Gulf of Mexico Inc. and Ocean Energy to gather and
transport oil and natural gas production from the two developments
in 3,700 feet of water about 150 miles south of Houston. To
accommodate production, Williams will install new offshore
pipelines and build a 300 MMcf/d gas processing plant adjacent to
its existing liquids separation facility near Markham, TX.
"This is a landmark transaction for Williams because it
positions us to be one of the largest independent service providers
in the deepwater Gulf of Mexico," said Alan Armstrong, vice
president of gathering and processing for Williams' midstream
operations. "We're also designing our infrastructure and logistics
to accommodate other prospects that may be developed in the East
Armstrong said that "from a bottom line perspective, we foresee
enough near-term activity in the deep water to more than double the
operating profit of the gathering and processing portion of our
midstream business by 2005."
Construction of the projects, which will cost more than $200
million, is scheduled for completion in the fourth quarter of 2001.
The gas processing plant connected to Williams' Central Texas
Gathering System will be capable of extracting about 20,000 barrels
a day of natural gas liquids for ultimate delivery to Mont Belvieu,
TX through a new pipeline lateral that will interconnect with
Seminole Pipeline. Other construction projects will include the