Independence Hub LLC, an affiliate of Enterprise Products Partners LP (EPP) and the five-member Atwater Valley Producers Group, is planning a $665 million platform hub and pipeline system to facilitate development of six ultradeepwater natural gas discoveries in the Atwater Valley, DeSoto Canyon, and Lloyd Ridge areas of the previously untapped eastern Gulf of Mexico.
The consortium has executed agreements to dedicate, process, and gather natural gas and condensate from the fields and from future production from a number of undeveloped blocks in the area. First production is expected in 2007.
The Atwater Valley Producers Group includes Anadarko Petroleum Corp., Dominion Exploration & Production Inc., Kerr-McGee Oil & Gas Corp., Spinnaker Exploration Co., and Devon Energy Corp.
Enterprise will design, construct, install, and own Independence Hub, which will be located on Mississippi Canyon Block 920 in 8,000 ft of water. It will consist of a 105-foot, deep-draft semisubmersible platform with a two-level production deck capable of processing 850 MMcfd of gas.
Anadarko will operate the $385 million platform, which will be designed to process production from the six anchor fields, with excess payload capacity to tie back as many as 10 additional fields.
Enterprise also will install, own, and operate Independence Trail, a 140-mile, 24-in. pipeline with a capacity of 850 MMcfd of gas. The $280 million transmission line will deliver production from Independence Hub to the Tennessee Gas Pipeline system in West Delta Block 68.
Enterprise has awarded key contracts to Atlantia Offshore Ltd. for hull and mooring systems design, fabrication, construction, and dry transport to the staging site at Ingleside, Tex.; Heerema Marine Contractors for hull and mooring systems transport and installation; Alliance Engineering for topsides engineering; Kiewit Offshore Services for topsides fabrication and installation onto the hull; and Allseas USA Inc. for pipeline installation.
The fields
The currently dedicated anchor fields are Atlas and Atlas NW on Lloyd Ridge Blocks 5 and 49-50, Jubilee on Atwater Valley Blocks 305 and 349 and Lloyd Ridge Blocks 265 and 309, Merganser on Atwater Valley Blocks 36-37, San Jacinto on DeSoto Canyon Blocks 618-619, Spiderman on DeSoto Canyon Blocks 620-621, and Vortex on Atwater Valley Blocks 217 and 261 and Lloyd Ridge Blocks 177 and 221.
Wells will be completed subsea and tied back to the platform through producer-owned subsea flowline systems. Water depths are 7,800-9,000 ft.
Anadarko discovered Atlas field in June 2003 when it encountered 180 ft of gross pay in nearly 9,000 ft of water. The Atlas NW satellite discovery followed in January 2004. Anadarko holds a 100% interest in the fields.
Anadarko discovered Jubilee field in April 2003 in 8,800 ft of water. The discovery well encountered 83 ft of net pay and was drilled to the target 18,310 ft. Anadarko holds 100%.
Kerr-McGee discovered Merganser in 2001, penetrating four high-uality Miocene reservoirs. Merganser lies in 7,900 ft of water 180 miles south of Mobile, Ala. Kerr-McGee is operator with a 50% working interest, and Devon Energy holds the remaining 50%.
Dominion Exploration & Production announced the discovery of natural gas on the San Jacinto prospect 140 miles south of Mobile Bay in April 2004. Dominion is the operator with a 53% working interest. Spinnaker Exploration has 27%, and Kerr-McGee has 20%. The discovery well was drilled to 15,829 ft TMD and encountered 100 ft of net pay in multiple reservoir sands.
This month, Dominion and its partners drilled a successful appraisal well on San Jacinto, encountering 100 ft of net pay in the same multiple reservoir sands. The well was drilled to 18,075 ft MD, cased to total depth, and temporarily abandoned for future use as a producer. The field will be developed jointly with the Spiderman discovery.
Anadarko discovered Spiderman field in November 2003. It drilled the discovery well in 8,100 ft of water to 18,065 ft TD and encountered more than 140 ft of net pay. Operator Anadarko holds a 45% working interest. Dominion holds 36.67% and Spinnaker, 18.33%.
Anadarko and Kerr-McGee each holds a 50% working interest in Vortex field. The field, discovered in December 2002, lies in 8,344 ft of water. The exploration well penetrated 75 ft of high quality pay in a Miocene reservoir.
