King Kong Received Royalty Relief From The MMS
Mariner Energy, Inc. announced that the Minerals Management Service has granted royalty relief to the Company for its "King Kong" Deepwater Gulf development project. King Kong is located in Green Canyon blocks 472 and 473, approximately 150 miles southeast of New Orleans, in 3,900 feet of water.
By granting the royalty relief, the MMS has suspended royalty payments on the first 87.5 million barrels of oil equivalent produced from the field. First production from King Kong is anticipated in December 2001.
Mariner is the operator of the King Kong project and owns a 50 percent working interest. Agip Petroleum Company, Inc., the U.S. upstream division of Eni SpA, owns the remaining 50 percent.