Anadarko Petroleum has started production from three wells at its massive Marco Polo deepwater field in Green Canyon Block 608 in the Gulf of Mexico and expects the field to reach full production sometime in 2005. However, associated gas production from Marco Polo will be a small fraction of the total 300 MMcf/d of available platform capacity and much less than some analysts had previously predicted.

The first two Marco Polo wells have produced a combined flow rate of 15,300 boe/d, including only 8.8 MMcf/d of gas. A third well was placed on production over the weekend, and the company expects the field, which is about 160 miles south of New Orleans, to reach peak daily production once all six wells are on line in early 2005.

While they are continuing to ramp up, Anadarko said it expects the associated gas production profile to remain basically the same through all six wells, for a total of about 29 MMcf/d of gas out of 50,000 boe/d of ultimate production. Analysts at Arlington, VA-based investment bank Friedman, Billings, Ramsey & Co. (FBR) previously had forecast total gas production of 150 MMcf/d from Marco Polo.

However, the company also plans to tie back two other fields to the Marco Polo platform next year that will substantially boost platform throughput. The platform, which is in 4,300 feet of water, has production capacity of 120,000 bbl/d of oil and 300 MMcf/d of gas. GulfTerra Energy Partners and Cal Dive International own the platform. Anadarko operates it.

“Deepwater is a significant component of Anadarko’s strategy that will drive our company’s growth for years to come,” Anadarko CEO Jim Hackett said. “In fact, since making our Marco Polo discovery, Anadarko has aggressively explored the Green Canyon area with excellent results. In September 2002, Anadarko and our partners discovered the K2 field, and in November 2003, Anadarko discovered the K2 North field. Both projects will be tied back to the Marco Polo platform and are expected to begin production in 2005.”

Cal Dive COO Martin Ferron said the Marco Polo facilities will operate as a major deepwater hub drawing production from multiple fields in an area with significant surrounding reserves. “As nearby reservoirs are found and tied back to the hub, bringing increased production, Cal Dive hopes to enjoy the full range of benefits from our production contracting strategy, including field farm-ins, incremental facility ownership deals and extensive subsea construction work,” he added.

A 75-mile, 18-20-inch diameter gas pipeline with 400 MMcf/d of capacity will deliver gas from Marco Polo to interconnects with GulfTerra’s Typhoon gas pipeline in Green Canyon Block 236.

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