Williams to Handle Production from Deep-Water Giant

Williams was selected yesterday by a consortium of deep-water Gulf of Mexico producers to handle about 500 MMcf/d of gas production that is scheduled to come on stream in mid-2002. To accommodate the projected volumes, Williams will build the Canyon Station, a production handling platform in the East Main Pass area south of Mobile Bay.

"This is the third major agreement we've signed this year to bring new supplies of natural gas production into our Mobile Bay operations," said Alan Armstrong, vice president of gathering and processing in Williams' midstream unit. The Williams platform will process gas from the proposed Canyon Express gathering system, which will bring gas from several production fields. Williams' Canyon Station platform also will be connected to three pipeline outlets that deliver the residue gas onshore, giving the producers access to a variety of markets. Construction for the platform is slated to begin in summer 2001 and conclude in second-quarter 2002.

The leases being developed are in the Camden Hills, Kings Peak and Aconcagua fields in the eastern Gulf of Mexico, located in 7,000 feet of water south of Alabama's Mobile Bay, near Coden. The production project is being developed and managed by the Canyon Express producers, a consortium of Elf Exploration, Mariner Energy, Pioneer Natural Resources, BP Amoco, Marathon Oil, Total Exploration, and Baker Hughes. Elf is the operator of the Canyon Express Pipeline subsea production system.

Upon completion, Canyon Express will set a new water depth record for commercial production. The current water depth record in the Gulf of Mexico is Shell's Mensa field in 5,300 feet of water.

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