Devon Energy Has Restored 50% of its Gulf of Mexico Production
Devon Energy has restored about 50 percent of its Gulf of Mexico oil and natural gas production following Hurricane Katrina. Approximately two-thirds of the restored production is natural gas.
Devon had suspended essentially all of its production in the Gulf of Mexico commencing August 27, 2005, as a precautionary measure. Devon produces approximately 80,000 equivalent barrels of oil (Boe) per day from wells located in the Gulf of Mexico, or roughly 13 percent of the company's worldwide oil and gas production.
The company also reported that it expects to bring on an additional 30,000 Boe per day of production upon completion of damage assessments and any necessary repairs to third party facilities and transportation systems. Some oil pipelines are in the process of being pressure tested before being placed back into service. Additionally, some onshore oil terminals that are not currently operational await restoration of electrical power.
Damage assessments on Devon's properties that account for the remaining suspended production, approximately 9,000 Boe per day in the eastern Gulf, have not yet been completed. Devon's facilities in the western and central Gulf of Mexico sustained minimal damage.
Devon also reported that it is insured against physical damages and revenues lost due to interrupted production. Revenue reimbursements are subject to a standard waiting period.
"Devon's Gulf team did an outstanding job preparing our offshore
facilities ahead of the hurricane and resuming operations following the
storm," said Stephen J. Hadden, senior vice president, exploration and
production. "The safety of our employees and protection of the environment
are always our top priorities. To date, we have experienced no injuries or
spills associated with the storm."
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