Devon Able to Restore Some US Gulf Production

Devon Energy has restored a portion of its offshore oil and natural gas production in the Gulf of Mexico following Hurricanes Gustav and Ike. The company produces approximately 50,000 equivalent barrels of oil (Boe) per day from wells located in the Gulf of Mexico. Devon's U.S. offshore production is about 60 percent natural gas and represents roughly seven percent of the company's worldwide oil and natural gas production. Devon had suspended all of its production in the Gulf of Mexico as a precautionary measure prior to Hurricane Gustav.

"We are still in the process of evaluating the full extent of the impact of the recent hurricanes, but we are pleased to report that all of our employees are safe," said John Richels, Devon's president. "We safely evacuated our offshore facilities and are now getting everyone back to work as quickly as we can. I once again applaud the professionalism of our Gulf Coast and Houston teams as they prepared for and responded to the storms."

Currently, about 10,000 Boe per day of Devon's U.S. offshore production has been restored. The company expects to bring additional volumes back on line upon completion of damage assessments and any necessary repairs to Devon-operated and third-party facilities and transportation systems.

The hurricanes appear to have caused varying degrees of damage to several of the company's producing platforms in the central Gulf of Mexico. Hurricane Ike toppled two platforms in the Eugene Island area. The company's net production from the two toppled platforms was approximately 1,200 Boe per day prior to the storms.

Additionally, Hurricane Ike forced certain pipelines, third-party gas processing facilities and natural gas liquids fractionators in the Gulf Coast region to suspend operations. As a result, approximately 50,000 Boe per day of Devon's U.S. onshore production has also been curtailed. Repairs are now under way and electrical power is being restored. Therefore, the curtailed onshore volumes are expected to be brought back on line commencing over the next few days.

Read more on the aftermath of Hurricane Ike in Rigzone's Special Coverage After the Storm.