Newfield Says Pipeline, Onshore Facilities Contributing to Slow Production
Newfield Exploration updates its expected range of production for 2005 following production deferrals in the Gulf of Mexico related to Hurricane Rita. In addition, Newfield updated production guidance for 2006-07.
Year-to-date, four storms have caused production deferrals in the Gulf of Mexico -- Dennis, Arlene, Katrina and Rita. Newfield expects that the full - year impact of these storms will result in the deferral of 18-20 Bcfe from the Gulf of Mexico. Since Hurricane Rita, Newfield has restored Gulf production of approximately 60 MMcfe/d net out of total net production of about 320 MMcfe/d. Only about 14 MMcfe/d net is associated with lost platforms or structures. The remainder is related to damage to host platforms, pipeline infrastructure and onshore processing facilities. Newfield estimates that up to 220 MMcfe/d net of the shut-in production could resume within the next month if the condition of pipelines, host facilities and onshore processing plants will permit.
The table below outlines Newfield's annual production guidance through 2007. The Company's major development projects outside of the Gulf of Mexico remain on schedule. The increase in 2007 guidance reflects the return of deferred production in the Gulf of Mexico and production from recent discoveries.
Annual Previous Guidance (Bcfe) Today's Guidance (Bcfe) Increase 2005 258-260 245-248 ~1% 2006 273-286 262-286 7-15% 2007 300-325 310-350 18-22%
"The storms of 2005 dealt a severe blow to Gulf of Mexico infrastructure. Our operations personnel have done a great job of repairing damage and they continue to find creative ways to flow oil and gas to shore. Our revised production guidance reflects our best current assessment of the lingering impact of these storms. A reduced and damaged rig fleet will create challenges for all of us as we move forward," said David A. Trice, Chairman, President and CEO.
"While these storms have resulted in a short-term production set back, we have key development projects onshore and internationally that remain on- track. These projects should add significant production in 2006 and beyond. Our estimated production does not assume acquisitions or significant exploration success."
- Big Shale Turns OPEC Ally From Foe With Focus on Oil Returns (Dec 04)
- Shale Drillers Show Few Signs of Slowing as Profits Expand (Aug 02)
- $2 Billion Gulfport Buy Shows Drillers Thirsting for Next Play (Dec 15)