The Minerals Management Service (MMS) reported some progress Wednesday in returning Gulf of Mexico production to pre-Ivan levels, but severe weather in the Gulf is hindering the return of personnel. Based on reports from 18 companies, MMS said gas production shut-ins as of 11:30 a.m. CDT Wednesday were down to about 2,400.20 MMcf/d from 2,790.9 MMcf/d on Tuesday and 2,894.88 MMcf/d on Monday. Oil shut-ins fell to 578,411 bbl/d from 665,665 a day earlier.

Those production shut-ins exclude the production lost from the seven platforms that were destroyed. Cumulative production shut-ins (production that was deferred until platforms resume operations) now total 38.55 Bcf of gas and 9.05 million bbl of oil.

The MMS said 32 platforms remain evacuated, excluding the seven platforms that were destroyed by Ivan. Late Tuesday in another preliminary damage assessment, MMS reported that in addition to the destroyed platforms there also were four platforms with extensive damage, two spars and one MODU with extensive damage, one platform that was leaning over, two rig derricks leaning or missing and 13 pipeline leaks.

Producers are having a difficult time performing inspections this week and returning to platforms and other offshore infrastructure because of continuing rough seas, high winds and rain.

Magnum Hunter Resources said Wednesday it won’t be back up to full production from the affected wells until mid October. “While most production should be restored within the next 10 days, all presently shut-in production is anticipated to be back on line by mid-October,” the company said.

Magnum Hunter said its production losses will total about 23.3 MMcfe/d for the month of September and 10 MMcfe/d for the month of October 2004, which represents 31% of its September Gulf production and 13% of its October Gulf production. It expects its quarterly production will be 5% less than previously estimated due to Hurricane Ivan.

However, its facilities in the Main Pass and West Cameron areas incurred less than $500,000 in damages from the hurricane. High winds and wave action damaged walkways, handrails, helipads, and control lines but those damages are considered minor. While the eye of the hurricane came within 35 miles of the company’s operated platforms, “there appears to be no permanent damage to these properties,” Magnum Hunter said.

In a bizarre twist to an already strange hurricane season, the Weather Channel reported on Wednesday that a “poltergeisty offshoot” of Hurricane Ivan has reformed into a low pressure center in the north central Gulf and could form into a tropical depression. The National Hurricane Center is not ruling out the formation of a hurricane later this week.

Convection apparently started to flare up near the low Wednesday morning, but the system had to fight off shearing winds. While it may not become more organized, the storm currently is creating enough squalls and nasty seas to prevent some personnel from returning to offshore facilities.

Meanwhile, Hurricane Jeanne, which is several hundred miles east of the Bahamas, has become worrisome again. Jeanne apparently has changed course and is headed toward the U.S. coast again. Jeanne is among three tropical systems in the Atlantic, none of which are likely to threaten the Gulf of Mexico.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.