Kerr-McGee Adds To Its Deepwater Assets

Kerr-McGee Corp. through its affiliates, has acquired interests in more than 3 million additional deepwater acres, increasing its position in high-potential trends by nearly 10% since the beginning of the year.

Kerr-McGee do Brasil Ltda., with partners Esso Brasileira de Petroleo Limitada (Esso) and Petroleo Brasileira S.A. (Petrobras), were the high bidders for Block BM-ES-9 in the ANP Bid Round 3 in Brazil. The acreage lies about 100 miles offshore in the Espirito Santo basin, in water depths ranging from 4,400 to 9,600 feet. Kerr-McGee will own a 30% interest in this 550,000-acre block, and Esso will operate the block with a 40% interest. With this acquisition, Kerr-McGee will own interests in three blocks in Brazil totaling more than 4 million acres.

Offshore Gabon, Kerr-McGee Olonga Ltd. has acquired a 25% interest in the 2.4 million-acre Olonga Marin block. This acreage lies about 90 miles offshore Gabon in water depths ranging from 7,500 to 9,200 feet. Kerr-McGee will now own three adjacent blocks in the deep waters offshore Gabon, totaling more than 5.5 million acres.

In the deep water Gulf of Mexico, Kerr-McGee Oil & Gas Corp. has been awarded 23 blocks from the Central Gulf of Mexico lease sale held in March of this year. Kerr-McGee remains the No. 1 independent leaseholder in the Gulf of Mexico with interests in more than 525 blocks and is also the largest holder of deepwater blocks among independents with interests in 335 blocks on more than 1.8 million gross acres.