First Oil for Leadon Field in North Sea

Kerr-McGee Corp. announced that its 100%-owned Leadon oil field, on Blocks 9/14a and 9/14b in the U.K. sector of the North Sea, achieved first oil on November 10. First production was achieved less than two years after discovery of the field and less than one year after government approval of the field's development.

The daily production rate is currently approximately 10,000 barrels of oil, and is expected to ramp up to peak production in excess of 45,000 barrels per day during the second quarter of 2002. Located 220 miles northeast of Aberdeen, the Greater Leadon area includes satellite fields Birse and Glassel, which are about 5 miles from the Leadon field. Kerr-McGee estimates reserves in the Greater Leadon area to be in the range of 120 million to 170 million barrels of oil equivalent.

The Leadon field has been developed using subsea horizontal wells tied back to a floating production, storage and offloading (FPSO) vessel. The FPSO, the Kerr-McGee Global Producer III, was outfitted at the Swan Hunter yard on Tyneside in the U.K. With a development cost of approximately $650 million, the Leadon project is one of the largest single investments in the U.K. sector of the North Sea in 2001.