Offshore

Senate repeal of the Commodity Futures Modernization Act (CFMA), which would subject trading of over-the-counter energy derivatives to greater regulatory oversight, “would rescind significant advances” that have been brought about by the 14-month-old law, and in the end could accelerate the flight to overseas markets, warned the head of the Commodity Futures Trading Commission (CFTC).

Senate repeal of the Commodity Futures Modernization Act (CFMA), which would subject trading of over-the-counter energy derivatives to greater regulatory oversight, “would rescind significant advances” that have been brought about by the 14-month-old law, and in the end could accelerate flight to overseas markets, warned the head of the Commodity Futures Trading Commission (CFTC).

Repairs on a Matagorda Offshore Pipeline System leak near Matagorda Block 758 (see Daily GPI, Feb. 11) were not completed over the weekend due to bad weather. A spokesman for MOPS operator Northern Natural Gas said there was still no prognosis as of Monday afternoon on when the work will be finished. MOPS has been flowing no scheduled volumes since Saturday, affecting about 100 MMcf/d, he said.

Matagorda Offshore Pipeline System (MOPS) was shut down for unplanned maintenance after a leak was detected on the 24-inch mainline near Matagorda Block 758, MOPS operator Northern Natural Gas reported Friday afternoon. All production needed to be shut in as soon as possible, NNG said. It took 24 receipt points and nine delivery points to zero flow for downtime that was expected to last about 48 hours. About half of MOPS’ 100 MMcf/d in nominations for Friday’s gas day was affected, a spokesman said, with approximately 100 MMcf/d in impact expected effective Saturday until leak repairs are completed.

Sonat said the offshore Main Pass 72 receipt point was shut in due to a leak on a third-party pipeline between the platform and Sonat’s line. A crew was on-site Friday to investigate the leak. Due to this work, Sonat was not scheduling gas from the point effective with Friday’s evening cycle until further notice.

Sonat declared force majeure Wednesday after experiencing an unscheduled outage of the 12-inch Breton Sound Line offshore southeastern Louisiana. In order to make repairs, Sonat found it necessary to isolate and blow down about 15 miles of pipe. Gas was not being scheduled for Thursday’s gas day on the timely, evening and intraday 1 cycles from the Breton Sound 11, 18/19, 21, 32 and 36 receipt points. However, repairs were being completed Thursday afternoon, and Sonat canceled the force majeure and said it would begin accepting nominations at the five points again effective with the intraday 2 cycle for Thursday and the evening cycle for today.

A leak was confirmed at the Mustang Island 762 platform on the Northern Natural Gas-operated Matagorda Offshore Pipeline System off the Texas coast. The point was taken to zero flow, causing the shut-in of about 8,000 MMBtu/d until further notice. Personnel are evaluating the leak for repairs.

Blue Dolphin Energy Co. and American Resources Offshore Inc.(ARO) have agreed to a merger plan, whereby ARO will become a subsidiary of the Houston-based independent. As part of the deal, Blue Dolphin will acquire all of the outstanding shares of ARO’s common and preferred stock it doesn’t already own, and give ARO shareholders one Blue Dolphin share for every 36.2 shares of ARO stock.

Destin Pipeline is holding an open season through 1 p.m. CDT Aug. 30 to assess interest in expanded services. Recent offshore developments have indicated a potential need for extra capacity, Destin said. Currently it is capable of moving 1 Bcf/d.