By the OGJ Online Staff
HOUSTON, Sept. 5 -- Dominion Exploration & Production Inc. and Pioneer Natural Resources Co. have signed an agreement with Williams Cos. Inc., Tulsa, for infrastructure for deepwater Devils Tower field in the Gulf of Mexico.
The companies said the agreement was the first of its kind for the gulf. Williams will own the floating production facility as well as the gas and oil export pipelines. Dominion is operator of Devils Tower with 75% and Pioneer has 25%.
Dominion previously had contracted with SparTEC, a subsidiary of J. Ray McDermott Inc., to provide the truss spar floating production facility. Williams will assume responsibility for payments due under the SparTEC contract.
Williams will install the pipelines to produce Devil's Canyon. The 18-in. Mountaineer oil line will extend 120 miles from Mississippi Canyon Block 773 to Main Pass Block 34. The Canyon Chief gas pipeline will include an 18-in., 90-mile deepwater section from Mississippi Canyon 773 to Main Pass 261.
Duane Radtke, president and CEO of Dominion E&P, said, "This is an excellent deal for all of the companies involved. Dominion is able to significantly enhance the field economics by monetizing the potential third party use of the infrastructure. It will also allow Dominion to focus our efforts and our capital resources on our core business of exploration and production. Williams gains a significant contract to anchor these critical infrastructure investments in a deepwater area that is ripe for further development."