El Paso Corp. has completed the sale of some Gulf of Mexico (GOM), onshore and Texas Gulf Coast properties as a part of its portfolio high-grading efforts (see Daily GPI, Jan. 17). In total, El Paso contracted for the sale of an estimated 309 Bcfe of proved reserves for $752 million in four transactions, each with an effective date of Nov. 1, 2007. The GOM transaction also included the assumption by the purchaser of future plugging and abandonment liabilities associated with those properties, which were reflected on El Paso’s balance sheet as asset retirement obligations of $93 million at year-end 2007. After closing adjustments, final cash proceeds are expected to be $650 million. The proceeds will be used to reduce debt incurred for the acquisition of Peoples Energy Production Co. (see Daily GPI, Oct. 1, 2007). “The sale of these properties, together with the Peoples acquisition, reduces our per-unit lease operating costs, increases our future production growth rate, and increases the onshore U.S. weighting of our inventory of future capital projects,” said Brent Smolik, president of El Paso Exploration & Production Co. “We will continue to look for opportunities to enhance our efficiency, improve the quality of our inventory, and further high-grade our portfolio.” Jefferies Randall & Dewey acted as financial adviser.
Mexico
Articles from Mexico
‘Anomalies’ in Neptune Deepwater Hull Delay Start-Up
Australian producer BHP Billiton has begun assessing how to repair its Neptune tension leg platform (TLP) in the deepwater Gulf of Mexico (GOM) after discovering “structural anomalies” last week.
StatoilHydro Builds Lower Tertiary, Brazil Stakes in $1.8B Deal
Just a day after StatoilHydro ASA announced a deal to expand its presence in U.S. natural gas markets, the Norwegian producer moved to build its presence in the deepwater Gulf of Mexico (GOM) and in Brazil in a $1.8 billion agreement with Anadarko Petroleum Corp.
Consultant: 2007 Saw Deepwater Gulf Disappointment
The contribution of exploration in 2007 to the Gulf of Mexico (GOM) deepwater’s reserve base was the lowest in the past decade, according to a new report by consultant Wood Mackenzie. Reserves found amounted to only 553 million boe — less than half the reserves found in 2006.
Consultant: 2007 Was a Dud for Gulf of Mexico Deepwater
The contribution of exploration in 2007 to the Gulf of Mexico (GOM) deepwater’s reserve base was the lowest in the past decade, according to a new report by consultant Wood Mackenzie. Reserves found amounted to only 553 million boe — less than half the reserves found in 2006.
Plea Agreement Ends Investigation of Energy Partners East Bay Field
New Orleans-based Energy Partners Ltd. (EPL) has reached a resolution in the federal investigation into possible environmental violations at its East Bay field in the Gulf of Mexico (GOM), it said on Friday.
Plea Agreement Ends Investigation of Energy Partners East Bay Field
New Orleans-based Energy Partners Ltd. (EPL) has reached a resolution in the federal investigation into possible environmental violations at its East Bay field in the Gulf of Mexico (GOM), it said on Friday.
Tennessee Seeks to Acquire 530 Miles of Pipe from Columbia Gulf
El Paso Corp.’s Tennessee Gas Pipeline has asked FERC for authorization to acquire various ownership interests in approximately 530 miles of pipeline facilities in the Gulf of Mexico and onshore Louisiana from Columbia Gulf Transmission Co. and an affiliate.
Tennessee Seeks to Acquire 530 Miles of Pipe from Columbia Gulf
El Paso Corp.’s Tennessee Gas Pipeline has asked FERC for authorization to acquire various ownership interests in approximately 530 miles of pipeline facilities in the Gulf of Mexico and onshore Louisiana from Columbia Gulf Transmission Co. and an affiliate.
Industry Brief
The deepwater Gulf of Mexico (GOM) Tahiti project, one of the largest platforms of its kind, will be delayed about a year because of defective shackles in the mooring system, according to project sponsor Chevron Corp. First production is now expected by 3Q2009; it was originally scheduled to ramp up by mid-2008. Estimated production is expected to be about 70 MMcf/d of gas and 125,000 b/d of oil. Construction of the massive project began in late 2005, but a contractor discovered the mooring system problems in June after finding a problem on a similar installation for another producer (see Daily GPI, June 29).
