Another oil field service firm has joined the list of those taking a direct interest in oil and gas projects.
Energy Resource Technology Inc., a unit of Cal Dive International Inc., Houston, has taken a 20% working interest in Gunnison, a deepwater prospect of Kerr-McGee Oil & Gas Corp. Operator Kerr-McGee is drilling the first exploration well on the prospect in 3,200 ft of water on Garden Banks Block 668, one of three lease blocks in which the prospect lies.
"Because ERT is a production company that does not engage directly in exploration, Cal Dive has put in place outside financial mechanisms to cover its proportionate drilling cost exposure so that CDI shareholders are essentially shielded from exploratory risk," said Cal Dive. "In the event that exploratory drilling is successful and a development decision is made, Cal Dive will actively participate in field development planning and will collaborate with the working interest owners in the execution of subsea construction work."
Owen Kratz, Cal Dive chairman and CEO, said: "We believe that this is the first step towards a new industry model whereby both the oil company and service sectors can cooperate to achieve desired returns. Gunnison provides an opportunity to prove this concept. I am firmly convinced that this represents the way of the 21st century."