Anadarko Ceases Production at Independence Hub in Gulf of Mexico

The last producing well at the Independence Hub in the U.S. Gulf of Mexico went offline in December 2015, according to Anadarko Petroleum Corp.’s fourth quarter 2015 operations report.

Gross production from Independence Hub averaged 40 million cubic feet per day (MMcf/d), or 37 MMcf/d net to Anadarko’s interest, during the fourth quarter. Independence Hub produced 1.3 trillion cubic feet gross in eight-and-a-half years, exceeding initial production expectations by approximately 30 percent. The project hit payout within one-and-a-half years of first production, Anadarko noted.

Production from the $2 billion Independence Hub project started in 2007. The facility had the capacity to process up to 1 billion cubic feet of gas production from 10 anchor fields, with excess payload capacity to tie back up to nine additional subsea flowlines.

Last month, Anadarko reported it had launched oil production from the first three wells at its Heidelberg field at Green Canyon Block 859 in the U.S. Gulf. The company plans to drill two additional wells later this year to further boost field production, Anadarko stated in the report. At the end of fourth quarter 2015, the company had $67 million remaining on an $860 million carried interest agreement, which could be used to fund development activities this year.

Anadarko is flow testing the sixth well at its Caesar/Tonga development; the well is scheduled to come online during first quarter 2016. The company stated in its operations report that the development’s seventh well was near target depth at year-end 2015, and the phase two development project is moving ahead with first oil expected by year-end 2017.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com

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