Facility

BP started producing about 15,000 b/d of oil and 12 MMcf/d of gas from a single well at its Horn Mountain development in the Gulf of Mexico. Production from the facility, which is located in 5,400 feet of water 100 miles southeast of New Orleans, is expected to reach a peak rate next year of more than 65,000 b/d of oil and 68 MMcf/d of gas after a total of seven production wells are completed. BP started exploration on the field in July 1999 after acquiring leases in 1997 and 1998. The first discovery was announced in August 1999, and BP and partner Occidental Petroleum began delineation drilling immediately after that. The $600 million project, which includes the deepest free-floating dry tree drilling system in the world, went from discovery to production in about 40 months. It is expected to result in ultimate recovery of an estimated 150 million boe. BP is the operator and holds a 67% equity interest. Occidental Petroleum holds the remaining 33%.

With the ink barely dry on the new regulations in Mexico for liquefied natural gas (LNG) facility development, Marathon Oil and several partners last week filed the first application to develop a nearly $1 billion multi-faceted energy complex including a LNG receiving terminal with the Mexican federal Energy Regulatory Commission (CRE). The action vaulted the Marathon project in front of nearby San Diego-based Sempra Energy and another three or four other sponsors of proposed LNG facilities along the Pacific Coast of northern-most Baja, 20-40 miles south of the U.S. border.

With the ink barely dry on the new regulations in Mexico for liquefied natural gas (LNG) facility development, Marathon Oil and several partners Monday filed the first application to develop a nearly $1 billion multi-faceted energy complex including a LNG receiving terminal with the Mexican federal Energy Regulatory Commission (CRE). The action vaulted the Marathon project in front of nearby San Diego-based Sempra Energy and another three or four other sponsors of proposed LNG facilities along the Pacific Coast of northern-most Baja, 20-40 miles south of the U.S. border.

Marathon Oil Co. on Thursday proposed building a liquefied natural gas (LNG) regasification and power generation complex near Tijuana in Baja California with project partners Pertamina, Golar LNG Ltd. and Grupo GGS S.A. de C.V. The complex, which would be developed on the Pacific coast south of Tijuana, has a proposed start-up of 2005, with capacity to regasify up to 750 MMcf/d for regional use as well as export to Southern California. A 400 MW gas-fired power plant also would be constructed on the site.

Marathon Oil Co. on Thursday proposed building a liquefied natural gas (LNG) regasification and power generation complex near Tijuana in Baja California with project partners Pertamina, Golar LNG Ltd. and Grupo GGS S.A. de C.V. The complex, which would be developed on the Pacific coast south of Tijuana, has a proposed start-up of 2005, with capacity to regasify up to 750 MMcf/d for regional use as well as export to Southern California. A 400 MW gas-fired power plant also would be constructed on the site.

Citing low linepack and maximum withdrawals at its Washington Ranch storage facility, El Paso declared an Unauthorized Overpull Penalty situation Sunday. The OFO was being lifted Tuesday afternoon, a spokeswoman said.

Saying it was experiencing maximum withdrawals at the Washington Ranch storage facility, El Paso declared an Unauthorized Overpull Penalty situation Wednesday morning due to low linepack. Because of the OFO and high system demand, a maintenance shutdown of Line 1100 upstream of Guadalupe Station that had been scheduled for today was postponed until further notice.

Shell Gas & Power and El Paso Global LNG announced plans to build Mexico’s first liquefied natural gas (LNG) import terminal, a 1.3 Bcf/d facility in Altamira, Tamaulipas on Mexico’s northeastern coastline. Initial investment costs are estimated to be up to $300 million, and the regasification terminal is expected to start importing LNG in the first half of 2004.

Shell Gas & Power and El Paso Global LNG announced plans to build Mexico’s first LNG import terminal, a 1.3 Bcf/d facility in Altamira, Tamaulipas on Mexico’s northeastern coastline. Initial investment costs are estimated to be up to $300 million, and the regasification terminal is expected to start importation of LNG in the first half of 2004.