By the OGJ Online Staff
HOUSTON, Feb. 1 -- Kerr-McGee Oil & Gas Corp. said Friday it began production Jan. 28 from the first of three subsea wells at Nansen field in the deepwater Gulf of Mexico.
Output is expected to ramp up to a peak of 40,000 b/d and 80 MMcfd in the fourth quarter as work on the remaining nine dry tree wells are completed.
Kerr-McGee operates the Nansen area with a 50% interest. Ocean Energy Inc. has the other 50%.
The Nansen area is in 3,700 ft of water on East Breaks blocks 601, 602 and 646. It was developed with the world's first truss spar, featuring an open truss structure that enhances the spar's stability while reducing size and cost. Use of the method enabled Kerr-McGee to begin production less than 2 years after sanctioning development.
Successful development drilling at Nansen field increased estimated reserves into the range of 140-180 million boe.
Luke Corbett, Kerr-McGee Corp. chairman and CEO, said the development sets a deepwater record for the company. "We are developing two additional deepwater hubs using the truss spar design -- Boomvang, scheduled to come on stream during the second quarter, and Gunnison, set for first production in early 2004."
The Nansen spar, named the Kerr-McGee Global Producer V, is designed for production of 40,000 b/d of oil and 200 MMcfd of gas. It has excess capacity to allow for production from satellite fields.
Kerr-McGee, along with partner Ocean, is developing Navajo gas field at East Breaks 690 as a subsea tieback to the Nansen spar. First production from Navajo field is expected at midyear. A separate exploratory well is being drilled at the West Navajo prospect, which if successful, would be tied back to the Nansen facility.
Kerr-McGee and Ocean also have formed a joint venture to explore 181 undeveloped leases in the deepwater gulf. It has resulted in discovery of Red Hawk field on Garden Banks Block 877, with reserves of 300-500 bcfe. Development options are being evaluated.