Unocal’s Spirit Energy 76 unit has begun production on the Gulfof Mexico Muni discovery — ahead of schedule, under budget and ontarget to exceed 120 MMcf/d before the end of this year. Theoffshore Louisiana discovery, made only 10 months ago, has anestimated gross resource potential of 100 to 160 Bcf.

Sugar Land, TX-based Spirit Energy said one well already isproducing and two additional wells will be flowing natural gas bythe end of this month. Unocal, which obtained 100% interest in theMuni property 19 months ago in a March 1999 Outer Continental Shelflease sale, said there were no production figures available yet onthe first well, located about 75 miles southwest of New Orleans.

“The Muni development demonstrates our ability to makesignificant reserve additions in the mature Gulf of Mexico shelfand rapidly capitalize on the improved price environment,” saidTimothy H. Ling, executive vice president of Unocal’s NorthAmerican operations. “The first production at Muni comes just 10months after the field was discovered in December 1999. This kindof performance illustrates the competitive advantage that we havein our people and the culture they have created.”

After Unocal acquired the Ship Shoal 295 lease in the OCS 172 sale,Spirit Energy commissioned a project team to work on a fast-trackdevelopment of the field. In March 2000, Unocal awarded contracts todesign and fabricate production facilities for a planned December 2000startup. Global Industries Ltd. then laid seven miles of 14-inchdiameter pipe to connect the platform to Eugene Island Block 302 (seeDaily GPI, Sept. 28).

The platform, facilities and export pipeline were installed andtested in August, nearly two months ahead of schedule. Unocal saidthat project development costs through this year would be less than$50 million.

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