Gunnison hub producing in deepwater Gulf of Mexico

By OGJ editors

HOUSTON, Dec. 12 -- Initial production of 35 MMcfd of natural gas and 500 b/d of oil has begun from the first of three subsea wells slated for 2003 completion in the 10-well Gunnison field development in the Gulf of Mexico. Kerr-McGee Corp. affiliate Kerr-McGee Oil & Gas Corp., Oklahoma City, is operator of the new hub.

Production from the other two wells is expected to begin by yearend, with total production from all three wells projected at 5,000 b/d of oil and 125 MMcfd of gas by mid-January 2004. Production is expected to increase to 165-180 MMcfd of gas and 28,000-30,000 b/d of oil by yearend 2004, as the seven remaining wells are completed.

The Gunnison truss spar system, named the Kerr-McGee Global Producer VII, is in 3,150 ft of water on Garden Banks Block 668. The hub facility has a capacity of 40,000 bbl of oil and 200 MMcfd of gas, which maximizes the efficiency of developing satellite prospects in the area.

Kerr-McGee holds a 50% interest in Gunnison field, which is on Garden Banks Blocks 667, 668, and 669. Partners are Nexen Petroleum Offshore USA Inc., a wholly owned unit of Nexen Inc., Calgary, 30% and Energy Resource Technology Inc., a subsidiary of Cal Dive International Inc., Houston, 20%.

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