BP Amoco Draws Up Plans for Deep-Water Pipes
With 1.6 billion barrels of oil reserves and an unknown quantity
of deep-water natural gas reserves scheduled for production in 2003
in the Gulf of Mexico, BP Amoco is getting a little nervous about
lining up some means of transportation to shore.
There currently are no pipelines in the vicinity of its new
deepwater plays. The reserves are located in the southern
Mississippi Canyon, the southern Atwater Valley and the Green
Canyon areas of the Gulf. The company said last week it has formed
a new Gulf of Mexico deep-water oil and gas transportation project
team to investigate its options.
"We estimate the cost of providing the needed infrastructure to
be in excess of one billion dollars," said David H. Welch,
president of BP Amoco Gulf of Mexico Deepwater Development. "We are
initiating this effort on a 100% BP Amoco funded basis to allow us
to direct the pace of this work, giving us greater assurance that
the transportation option(s) selected will be available when our
new discoveries begin producing."
Jerry F. Wenzel, who has been selected to head the project team,
said it would work along two tracks: one for oil and the other for
gas. "We expect to develop a set of recommendations and begin
execution of the project in the next year," he said.
"Our expectation is that the first segments of the system will
be available for use as early as 2003 when the first of the fields
under development is ready to begin production," Wenzel said.
The discoveries behind the expected production include BP
Amoco's Crazy Horse, Holstien, Mad Dog, Atlantis and Nakika
deep-water projects. The company currently is drilling its first
appraisal well on Crazy Horse, the largest of the plays.
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