Independence Hub, LLC, an affiliate of Enterprise Products Partners L.P. and the Atwater Valley Producers Group, which includes Anadarko Petroleum Corp.; Dominion Exploration & Production, Inc., a subsidiary of Dominion; Kerr-McGee Oil & Gas Corp., a wholly owned affiliate of Kerr-McGee Corp.; Spinnaker Exploration Company and Devon Energy Corp. have executed agreements for the dedication, processing and gathering of natural gas and condensate production from six natural gas fields in the Atwater Valley, DeSoto Canyon and Lloyd Ridge areas of the deepwater Gulf of Mexico. As part of the transaction, the producers also have dedicated future production from a number of undeveloped blocks in the area for processing and gathering.
Enterprise will design, construct, install and own Independence Hub, a 105-foot deep-draft, semi-submersible platform with a two-level production deck, which will be capable of processing 850 million cubic feet of gas per day. The platform, which is estimated to cost approximately $385 million, will be operated by Anadarko, and is designed to process production from the six anchor fields and has excess payload capacity to tie-back up to 10 additional fields.
Independence Hub will be located on Mississippi Canyon block 920, in a water depth of 8,000 feet. This location was selected for the permanently anchored host facility based on favorable seafloor conditions and proximity to the identified anchor fields. First production is expected in 2007.
Under the terms of the agreement, the development will include dedicated anchor fields, Atlas and Atlas NW (Lloyd Ridge blocks 5/49/50), Jubilee (Atwater Valley blocks 305/349 and Lloyd Ridge blocks 265/309), Merganser (Atwater Valley blocks 36/37), San Jacinto (DeSoto Canyon blocks 618/619), Spiderman (DeSoto Canyon blocks 620/621) and Vortex (Atwater Valley blocks 217/261 and Lloyd Ridge blocks 177/221), in addition to future discoveries on surrounding undeveloped blocks. The fields will be tied-back to the platform through producer-owned subsea flowline systems. The fields' water depths range from 7,800 to 9,000 feet.
Enterprise has awarded key contracts to:
Additionally, Enterprise will own, install and operate 140 miles of 24-inch pipeline, with a capacity of approximately 850 million cubic feet of gas per day, named Independence Trail. The pipeline, which is estimated to cost $280 million, will redeliver the production from Independence Hub into the Tennessee Gas Pipeline located in West Delta 68.
The dedication of reserves from these fields and the surrounding area allows for the development of additional energy resources to meet ever-increasing demands, while providing new infrastructure for economical development of future discoveries in the area.
Most Popular Articles