Marathon Developing Additional Subsea Well in Kinsale Head A

Marathon Oil will be drilling and developing an additional subsea gas well in the Kinsale Head area of the Celtic Sea offshore Ireland. The company will complete the well using a subsea tieback to Marathon's existing Kinsale Head Bravo Platform. The target date for completion of the project is July 2003. The development is subject to the approval of the Minister for Communications, Marine and Natural Resources to whom an application has been made.

The Greensand subsea gas well that will be drilled in 2003 is designed to enhance the productivity of the main Kinsale Head natural gas producing Greensand reservoir. The well will target the southwestern part of the reservoir that is not currently being adequately drained by existing Kinsale Head platform wells. It is estimated that the base production capacity of the Kinsale area reservoirs will increase from approximately 65 million cubic feet per day (mmcfpd) to an estimated 90 mmcfpd when the Greensand well comes on-stream. Marathon owns a 100-percent interest in Kinsale Head.

Commenting on the proposed development, Fergal Murphy, President of Marathon International Petroleum Ireland Limited, said, "This development further enhances Marathon's production capability from the Kinsale fields and complements both Marathon's gas storage capability and its recent third party processing arrangement with the Seven Heads group."

The well will be drilled from a surface location 7 kilometers (4.5 miles) southwest of the Kinsale Head Bravo Platform, and it will be tied back to the platform via a 10-inch diameter subsea pipeline. Control of the well will be accomplished by means of an extension to the existing electro-hydraulic umbilical that controls the Southwest Kinsale gas storage wells.

Marathon's Kinsale Head facilities consist of two production platforms, Alpha and Bravo, located 5 kilometers apart and approximately 50 kilometers southeast of Cork. The facilities process natural gas for transportation through a 56 kilometer, 24-inch diameter subsea pipeline to a receiving and metering station at Inch in County Cork. From Inch Terminal, the gas is transferred to the Bord Gais Eireann transportation system for distribution throughout Ireland.


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