Mexico

To build its presence in the U.S. offshore, Itochu Corp. has purchased Range Resources Inc.’s Gulf of Mexico (GOM) natural gas-rich assets for $155 million. Japan’s fourth-largest trading company said it plans to invest about $170 million [Y20 billion) this year in the United States to build its U.S. gas business.

Anadarko Petroleum Corp. said last Monday it agreed to sell a portion of its interest in the K2 Unit in the Gulf of Mexico to two undisclosed parties for $1.2 billion effective Jan. 1, 2007.

Anadarko Petroleum Corp. said Monday it agreed to sell a portion of its interest in the K2 Unit in the Gulf of Mexico to two undisclosed parties for $1.2 billion effective Jan. 1, 2007.

With installation of the Independence Hub production platform in the deepwater of the eastern Gulf of Mexico (GOM) now complete, Enterprise Products Partners LP said it will transfer control to Anadarko Petroleum Corp. as platform operator. The hub, expected to ramp up in the second half of 2007, will be capable of handling up to 1 Bcf/d, which would represent more than a 10% increase in gas deliveries from the GOM (see NGI, Oct. 23, 2006). The producer group is now in the process of installing flowline risers, which will transport production from the subsea wellheads to the hub, and Enterprise is installing the export pipeline riser that will transport natural gas from the platform to the 134-mile Independence Trail pipeline, which was installed in August 2006. Independence Trail will transport up to 1 Bcf/d of natural gas from the hub to the partnership’s West Delta 68 platform, which connects to a third party pipeline to deliver the gas onshore into Louisiana.

With installation of the Independence Hub production platform in the deepwater of the eastern Gulf of Mexico (GOM) now complete, Enterprise Products Partners LP said Thursday it is transferring control to Anadarko Petroleum Corp. as platform operator. The hub, expected to ramp up in the second half of 2007, will be capable of handling up to 1 Bcf/d, which would represent more than a 10% increase in gas deliveries from the GOM (see Daily GPI, Jan. 30).

Devon Energy Corp. has a long “to-do” list of exploration activities planned in North America this year — in the deepwater Gulf of Mexico, onshore in its core U.S. holdings and in emerging Canadian oilsands projects. The plans take into account rising service and labor costs, but “we’d have to see a fairly large reduction in prices” before pulling back on any planned exploration, President John Richels said. “We’re taking the longer-term view, and we’re very confident that we’ll see higher prices this year on the gas and oil side.”

The operational start-up date of the deepwater Atlantis South field development in the Gulf of Mexico (GOM) “remains under review,” but the ultimate costs for 44% stakeholder BHP Billiton Ltd. will be at least 50% higher, the company said Wednesday. The field, operated by majority stakeholder BP plc, had been expected to cost a total of $3.5 billion.

With management trained on a bevy of exploration opportunities in the deepwater Gulf of Mexico (GOM) and its mounting success onshore in the Barnett Shale and Midcontinent, Devon Energy Corp.’s announcement last week to put its West African oil and gas assets on the market appeared to clarify the independent’s optimism about North American prospects.

The operational start-up date of the deepwater Atlantis South field development in the Gulf of Mexico (GOM) “remains under review,” but the ultimate costs for 44% stakeholder BHP Billiton Ltd. will be at least 50% higher, the company said Wednesday. The field, operated by majority stakeholder BP plc, had been expected to cost a total of $3.5 billion.