Dominion Makes Initial Assessment of Damage from Ivan

Dominion reports that an initial post-storm assessment of the Devils Tower facility that it operates in the Gulf of Mexico determined the facility's platform incurred no serious structural damage but did sustain damage to the surface production and completion equipment. Production could resume as early as three weeks, subject to repairs and approvals by the Mineral Management Service and other agencies.

Dominion's Front Runner facility and other Gulf properties appeared to have sustained no significant damage under initial inspection.

The company's Dominion Exploration & Production unit has a comprehensive insurance program to reimburse for delayed production, which will be covered by insurance beyond an estimated $9 million after-tax loss of income during the uninsured period. This amount represents about 3 billion cubic feet equivalent of production, which will be delayed to a future period.

Overall, about 80 percent of the company's production is from onshore with about 20 percent from offshore properties in the Gulf.

At Devils Tower, Dominion Exploration & Production is a 75 percent owner of the production and is the operator of the spar platform that began producing in May in a tract about 140 miles southeast of New Orleans. Pioneer Natural Resources owns 25 percent.

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