East Breaks Gathering Co., a new joint venture between LeviathanGas Pipeline, ANR Pipeline Co., and Natural Gas Pipeline Co. ofAmerica, said last week it is taking part in a $1.2 billion Gulf ofMexico joint development project between Amoco and Exxon. EastBreaks has agreed to build, operate and service a new pipelineextending from Amoco and Exxon’s western Gulf facility to aninterconnect that feeds ANR’s pipeline. Construction of the newpipeline and the producer’s deep-water drilling facility isexpected to be finished in mid-2000. Estimated reserves in the areawere not disclosed.

The $90 million, 85-mile, 20-inch pipeline will have a designcapacity of 400 MMcf/d. It will extend from the Exxon and BP Amocofacility in Block 25 of Alaminos Canyon, located 160 miles south ofGalveston, to a point of interconnection with the existing HighIsland Offshore System at High Island Block A-573. All the gas willbe drawn from the Diana and Hoover prospects, an 11-block areacovered by this facility, and will be dedicated for transportationservice on the High Island system.

“This is good news for our shippers. There is a lot of gas inthose blocks. I’ve heard as much as 1 Tcf.” said Joe Martucci, anANR spokesman.

East Breaks Gathering Co. was formed specifically for thisproject. “The size and the scope of this project warrants its owncompany,” Martucci added. East Breaks, which is run by a committeestaffed by members of the participating companies, has contractedANR Pipelines to operate the pipeline.

“This is by far the largest GOM project we’re involved in,” saidBob Davis, an Exxon spokesman. “Our intentions for the Diana/Hooverprospects were announced last April, and we think it will be veryprofitable.” Davis added the two companies expect to have 325MMcf/d running through the pipeline by the end of its second yearin service.

A 75-story, 50-yard wide deep draft caisson vessel (DDCV) ispresently under construction in Houston. “Right now, we’re in thefabrication stages of both the hull and the topside.” Once inplace, Davis said it will be able to drill through 4,800 feet ofwater, “and several thousand feet more.”

John Norris

©Copyright 1999 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.