Deepwater

The first cargo of liquefied natural gas (LNG) is expected to arrive at the GDF Suez Neptune LNG deepwater port offshore Gloucester, MA, some time in August, a company spokesperson confirmed.

Although the House Energy and Commerce Committee’s investigation of the Deepwater Horizon rig blowout and spill is in its early stages, Committee Chairman Henry Waxman (D-CA) Wednesday said the committee has uncovered major discrepancies in the accounts of some of the companies.

Denmark-based Maersk Oil has purchased Devon Energy Corp.’s 25% stake in the deepwater Gulf of Mexico Jack prospect in the Lower Tertiary Trend. Maersk in December had agreed to pay $1.3 billion to purchase Devon’s interests in three Lower Tertiary projects: the Jack, St. Malo and Cascade (see Daily GPI, Dec. 23, 2009). However, working interest partners in St. Malo (Chevron Corp.) and Cascade (Petroleo Brasilerio) exercised preferential rights to purchase Devon’s interests (see Daily GPI, Jan. 26). Devon said the aggregate purchase price of its interests in the three prospects remains $1.3 billion; closings are expected by the end of March.

Denmark-based Maersk Oil has purchased Devon Energy Corp.’s 25% stake in the deepwater Gulf of Mexico Jack prospect in the Lower Tertiary Trend. Maersk in December had agreed to pay $1.3 billion to purchase Devon’s interests in three Lower Tertiary projects: the Jack, St. Malo and Cascade (see Daily GPI, Dec. 23, 2009). However, working interest partners in St. Malo (Chevron Corp.) and Cascade (Petroleo Brasilerio) exercised preferential rights to purchase Devon’s interests (see Daily GPI, Jan. 26). Devon said the aggregate purchase price of its interests in the three prospects remains $1.3 billion; closings are expected by the end of March.

A deepwater Gulf of Mexico (GOM) sidetrack appraisal well south of the Lucius discovery well in Keathley Canyon Block 875 appears to confirm a “major discovery with substantial resource potential,” an executive with Anadarko Petroleum Corp. said Wednesday.

A deepwater Gulf of Mexico (GOM) sidetrack appraisal well south of the Lucius discovery well in Keathley Canyon Block 875 appears to confirm a “major discovery with substantial resource potential,” an executive with Anadarko Petroleum Corp. said Wednesday.

Barclays Capital and Excelerate Energy LLC have agreed for Barclays to market Excelerate’s liquefied natural gas (LNG) cargos arriving at its Northeast Gateway deepwater port. Barclays also will provide optimization and hedging services as part of what the firm said is its new Barclays Capital LNG Services division.

Helix Energy Solutions Group Inc. subsidiary Energy Resource Technology GOM (ERT) said it has made a deepwater oil and gas discovery in the Gulf of Mexico (GOM) at its Jake Prospect in Green Canyon Block 490 that it estimated at 50-75 Bcfe gross on a proved, probable and possible basis. The discovery well was drilled to 13,504 feet in 3,740 feet of water and encountered 134 feet of net oil and gas pay in a single sand interval. ERT said the well has been cased and temporarily abandoned for a future subsea completion. First production is estimated in mid-2011. ERT owns a 25% working interest in both the discovery well and Green Canyon Block 490. ERT also recently discovered 20 feet of oil and gas pay at its 75% owned and operated South Timbalier 145 Field. The discovery was drilled to 14,193 feet true vertical depth. That well is currently being completed and is expected to commence production this month.

Marathon Oil Corp. has completed drilling all four development wells on the deepwater Gulf of Mexico (GOM) Droshky project, but onshore spending has been curtailed because of lower natural gas prices, the producer said. Well completions at the Droshky project are under way and production is on track to begin in 2010, with peak net output estimated at 43 MMcf/d of natural gas and 45,000 b/d of oil (see NGI, Nov. 3, 2008). Marathon earned $413 million net (58 cents/share) in 2Q2009, compared with $774 million ($1.08) in 2Q2008. The producer’s average realized U.S. gas price was $3.60/Mcf in 2Q2009, compared with $8.66 a year earlier. U.S. E&P operations lost $41 million in the quarter versus earnings of $359 million in 2Q2008, as revenues plunged 60% on lower commodity prices. Marathon’s net U.S. gas sales fell quarter/quarter to 365 MMcf/d from 431 MMcf/d, and U.S. hydrocarbon liquids sales rose slightly to 64,000 boe/d from 63,000 boe/d. The company’s integrated gas segment, which includes liquefied natural gas, reported profits plunging to $13 million in 2Q2009 from $102 million in 2Q2008, mostly on lower price realizations.