Selected

Kerr-McGee Corp. and partner Ocean Energy Inc. have selected Technip Offshore Inc. to construct the world’s first cell spar for the development of the Red Hawk deepwater field in Garden Banks block 877 in the Gulf of Mexico. First production from the natural gas field with estimated proven reserves of more than 250 Bcf is expected in the second quarter of 2004. Located in 5,300 feet of water, Red Hawk will be Kerr-McGee’s deepest development to date. Kerr-McGee Oil & Gas Corp., a subsidiary of the Oklahoma City-based company, operates Red Hawk with 50% interest, and Ocean Energy holds the remaining 50%. Luke R. Corbett, Kerr-McGee CEO, said, “This new cell spar technology will allow us to capitalize on our deepwater prospects by reducing the reserve threshold needed for an economical platform development in deep waters.” The innovative cell spar, which is the third generation of spar technology, will have an initial daily production capacity of 120 MMcf, with ultimate capacity of 300 MMcf. It will measure 64 feet in diameter and 480 feet in length. The design includes seven tubes, each 20 feet in diameter, with a center tube surrounded by the other six tubes, all connected by structural steel. The deck will be 110 feet by 132 feet. Construction is expected to begin in the fourth quarter of 2002.

A unit of Williams and Duke Energy Field Services completed an agreement to exchange selected natural gas gathering and processing interests located in Wyoming, Texas and Oklahoma. First announced in late January, the companies completed the transaction on Feb. 28. Under the swap agreement, Williams receives Duke Energy Field Services’ 34% interest in the Echo Springs processing plant and related gathering system near Wamsutter, WY. In addition to operating the facilities, Williams already owns the remaining 66% interest in the Echo Springs complex and just finished expanding its capacity to almost 400 MMcf/d. In exchange, Duke Energy Field Services receives Williams’ Hugoton gathering system in Oklahoma and the Baker, Hobart Ranch and South Bishop gas processing plants located near Baker, OK and Canadian, TX, and in Ellis County, OK, respectively.

TXU and Kinder Morgan Inc. (KMI) subsidiaries have been selected by FPL Energy LLC to fuel its gas-fired power plant near Forney, TX that is scheduled for commercial operation in mid-2003. Both TXU and Kinder Morgan subsidiaries will construct lines that connect to existing facilities. A KMI subsidiary also obtained a long-term contract with FPL to transport gas to a new facility.

AES NewEnergy has been selected by Lockheed Martin Corp. as Lockheed’s supplier for its Middle River facility located in Baltimore. The 10-month contract to serve the facility’s full electricity requirements will start next month and AES NewEnergy is also working with Lockheed to reduce its energy costs while enhancing the PJM Interconnection’s reliability under AES NewEnergy’s voluntary ISO profit program. “Lockheed Martin is a nationally recognized leader in their industry, and we look forward to partnering with them to control their energy costs,” said Edward Toppi, vice-president of AES NewEnergy, which is a subsidiary of AES Corp.

Williams was selected last week by a consortium of deep-waterGulf of Mexico producers to handle about 500 MMcf/d of gasproduction that is scheduled to come on stream in mid-2002. Toaccommodate the projected volumes, Williams will build, operate andown the Canyon Station, a production handling platform in the EastMain Pass area south of Mobile Bay.

Williams was selected yesterday by a consortium of deep-waterGulf of Mexico producers to handle about 500 MMcf/d of gasproduction that is scheduled to come on stream in mid-2002. Toaccommodate the projected volumes, Williams will build the CanyonStation, a production handling platform in the East Main Pass areasouth of Mobile Bay.

BC Gas selected Marine Pipeline Construction, a division of MurphyPipeline Inc., as its contractor for the 188-mile, 24-inch diameterSouthern Crossing gas pipeline. The contractor will begin movingequipment immediately to locations along the pipeline route, whichstretches from Oliver to Yahk, BC. Construction is expected to beginbefore June 1 and be completed by November. The C$377 million projectwill be designed to initially transport 250 MMcf/d with room forexpansion to 600 MMcf/d. Addition details are available in a pdffile on BC Gas’web site.

Vastar Resources and Newfield Exploration Co. have selectedWilliams to gather, process and transport nearly 75 MMcf/d ofnatural gas from offshore wells along the Alabama coast. The twoenergy producers are jointly developing reserves in the Gulf ofMexico’s Mobile Bay area, the location where Williams recentlyadded 350 MMcf/d of transportation capacity and a wholly-owned 600MMcf/d processing plant onshore. The Williams plant is located inCoden, AL.

FuelCell Energy Inc. (FCE) was selected by the U.S. Departmentof Energy for a $3.125 million program to support the design of anultra-high efficiency, fuel cell/turbine hybrid power plant basedon the company’s Direct FuelCell (DFC). The system would combinethe FCE’s non-pressurized Direct FuelCell with a non-combustionturbine. The program includes development of a high-utilizationfuel cell and key system components, a sub-scale test of aDFC/turbine hybrid system and the conceptual design of a 40 MWpower plant.