Anadarko's production in the Gulf of Mexico from the K2 and Marco Polo fields is produced through the Marco Polo platform. The platform sustained no material damage from either Hurricane Rita or Katrina, although its gross volumes totaling approximately 20,000 barrels of oil equivalent (BOE) per day were shut in for a combined 20 days during the third quarter because of the storms. The Marco Polo field is back on production, and the K2 field is expected to ramp back up to pre-storm levels this week. Onshore Texas and Louisiana operations were disrupted by Hurricane Rita but have been returned to normal levels.
In total, the company estimates that combined onshore and offshore weather-related shut-ins and delays, including those affecting rigs being used to develop the K2, K2 North and Genghis Khan fields in the Gulf of Mexico, reduced third quarter net volumes by 400,000 BOE. Full-year 2005 net volumes are expected to be reduced by approximately 2.2 million BOE due to the shut-ins and ongoing effects of the delayed development activity, including delays due to loop currents. These delays are also expected to reduce 2006 net volumes by approximately 2 million BOE.
The following is an update on Anadarko's exploration and development operations in the deepwater Gulf of Mexico:
-- The Ensco 7500 drilling rig assigned to the Genghis Khan field on Green Canyon (GC) Block 652 and Transocean's Deepwater Millennium drillship assigned to the Daredevil prospect (Lloyd Ridge 95) sustained no material damage and resumed operations following brief shut-downs for the storm. Anadarko is operator with 100 percent working interests in these blocks. -- The Noble Paul Romano rig assigned to K2 North field (GC 518) development received damages to the mooring system from Hurricane Rita and is under going repairs. -- Global Santa Fe's Celtic Sea rig assigned to K2 field (GC 562) development was damaged by both hurricanes and is undergoing repairs. -- Anadarko also has interests in three currently drilling non-operated exploration wells. Rigs assigned to the Unocal-operated Knotty Head prospect (GC 512) and the Chevron-operated Big Foot prospect (Walker Ridge 29) have resumed operations, but the rig assigned to the Shell-operated Pathfinder prospect (GC 390) is undergoing repairs for damage inflicted by both hurricanes.
"Disruptive storms are a part of working in the Gulf of Mexico. Anadarko employees handled the operational and logistical challenges efficiently and safely, without a single related injury, and that's our first priority," Mark Pease, Anadarko Senior Vice President, Exploration and Production, said. "Every day we do our part to protect our people, the environment and our operations. We continue to be very excited about Anadarko's deepwater exploration and development projects and the key role they play in Anadarko's strategy."
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