Produced

Cannonball, the first platform designed and constructed in Trinidad and Tobago, produced its first natural gas earlier this month and at full production in the next few weeks will ramp up to about 800 MMcf/d, BP plc reported.

Gov. Kathleen Blanco is calling on the federal government to give Louisiana a greater share of the revenues from the oil and natural gas produced off the coast of her state, hinting strongly that she will block future lease sales off Louisiana’s shoreline if the government does not fork over a bigger share of the royalty pie to the state.

The Appalachian and Illinois basins may have produced five billion bbl of oil and 50 Tcf of natural gas over the last century and a half of operation, but according to a new report by the Department of Energy’s (DOE) Office of Fossil Energy, these under-explored areas still have plenty of gas and oil left.

Devon Energy Corp. said that as of the end of June it has produced 1 Tcf of natural gas from the Barnett Shale formation in East Texas, a significant milestone since it purchased Mitchell Energy & Development in 2002.

The sales of royalty oil and natural gas through the Minerals Management Service’s royalty-in-kind (RIK) program produced more than $18 million in additional revenue for the U.S. Treasury in fiscal year 2004, the Interior Department said last week.

The sales of royalty oil and natural gas through the Minerals Management Service’s royalty-in-kind (RIK) program produced more than $18 million in additional revenue for the U.S. Treasury in fiscal year 2004, according to the Interior Department.

The Minerals Management Service (MMS) said it sold 485,400 MMBtu/d of gas through its Gulf of Mexico royalty-in-kind (RIK) program in a competitive auction. The gas was produced from federal leases in the Gulf and was sold to 13 companies during the spring RIK gas sale that was concluded March 10.

The Minerals Management Service (MMS) said it sold 485,400 MMBtu/d of gas through its Gulf of Mexico royalty-in-kind (RIK) program in a competitive auction. The gas was produced from federal leases in the Gulf and was sold to 13 companies during the spring RIK gas sale that was concluded March 10.

As part of the agency’s royalty-in-kind (RIK) program, the Minerals Management Service (MMS) has requested written offers to purchase 387,000 MMBtu/d of royalty gas produced from federal leases in the Gulf of Mexico. The production is delivered into 11 offshore pipeline systems, including ANR Nearshore, Columbia Gulf Bluewater, Central Texas Gathering System, Garden Banks, Mississippi Canyon, Matagorda Offshore Pipeline System, Seagull Shoreline, Stingray, Tennessee Gas 800 Leg, Tetco East Louisiana and the Transco Southeast Lateral. MMS said it may award a contract on the basis of the initial offer received without discussion. Accordingly, each initial offer should be submitted on the most favorable terms that the offerer can submit. However, MMS may negotiate with offerers in the event offers of similar or unanticipated value are received. MMS said the Henry Hub and/or Nymex are preferred indices on all packages in addition to the named indices. Initial deliveries of royalty gas to the buyer will commence on Nov. 1. The royalty gas delivery period will be for a term of five months ending March 31, 2005 or 12 months ending Oct. 31, 2005, depending on the value of offers received. Written offers can be submitted via facsimile at (303)-231-3846 by 11 a.m. (CT) on Oct. 6. The agency said it will award the offers by 3:00 p.m. on Oct. 7. For more information, contact Mike DeBerard at (303)-231-3884, Karen Bigelow at (303)-231-3890, or Jeff Olson at (303)-231-3225. The MMS-implemented RIK program generates revenues through receiving oil and gas royalties in kind, rather than in cash, and competitively selling the commodities in the marketplace.