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
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
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."
©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.