The Italians seem to be rediscovering the New World — and it’sin the Gulf of Mexico this time. In the largest venture of its kindin the Gulf of Mexico’s deep offshore, Exxon Mobil Corp. has givenAgip Petroleum Exploration Co. the opportunity to earn 25% of theU.S. company’s interest in up to 259 deepwater blocks. To earn theinterest, Agip, a subsidiary of Eni, the Italian oil and naturalgas company, has to participate in the drilling of at least 12exploration wells over the next five years.

The agreement covers approximately 1.3 million net acres, or5,200 square kilometers, and is the largest of its kind to date tobe announced in the Gulf of Mexico’s deep offshore, according toLuciano Sgubini, chief operating officer of Agip.

“The deepwater operating environment is challenging, but has thepotential to contain large undiscovered accumulations of oil andgas,” said John Cousins, executive vice president of ExxonMobilExploration Co. “The combined capabilities of ExxonMobil and Agipwill result in a very strong partnership to explore thissignificant potential.”

The leases are located on the Outer Continental Shelf offshoreTexas, Louisiana and Mississippi. They extend from Alaminos Canyonto Atwater Valley in water depths ranging from 3,000 to 8,000 feet.ExxonMobil owns 100% interest ;in about two-thirds of the blocks,and 50% interest in the remainder. Drilling is expected to beginlater this year with ExxonMobil as operator.

While the Italian oil and gas giant holds interests around theworld, the newest venture by Agip is not its first in the Gulf ofMexico.

Partnered with Shell, BP Amoco and Conoco, Agip is participatingon production from Shell’s Europa field in the Gulf. Production isflowing from three wells on Mississippi Canyon Block 934 atapproximately 40,000 bbl/d, and 30 MMcf/d. Production from thefirst well there began January 31, and the third and final well ofthe initial phase was completed March 11. The Europa subseaproduction system is about 140 miles southeast of New Orleans in3,900 feet of water, and ties back 18 miles to Shell’s Mars tensionleg platform on Mississippi Canyon Block 807.

The Mississippi Canyon Block also includes the Macaroni project,which began in August 1999, and Angus, which began in September1999. Shell is operator of 13 of the projects, and Agip is aparticipating partner in them. Shell holds a 34% interest in theproject, BP Amoco holds 33% interest, and Agip has a 32% interest.Conoco holds 1% interest.

Agip also partnered with Chevron and Shell to begin drilling inJuly on the initial well on Chevron’s “Hurricane” prospect in 2,000feet of water at Ewing Bank Block 1010 in the Gulf.

And earlier, in January 1999, Agip grabbed a 30% interest, andagreed to participate in EEX Corp.’s George prospect on Blocks 441,442 and 485 in the Mississippi Canyon area of the Gulf of Mexico.EEX is the operator, and retained a 70% interest.

Carolyn Davis, Houston

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