Williams to transport Blind Faith oil, gas

Oct. 14, 2005
Williams Cos. Inc., Tulsa, has signed agreements to transport oil and gas produced for the life of the leases in Blind Faith field on Mississippi Canyon Blocks 695 and 696 in the deepwater Gulf of Mexico.

By OGJ editors
HOUSTON, Oct. 14 -- Williams Cos. Inc., Tulsa, has signed agreements to transport oil and gas produced for the life of the leases in Blind Faith field on Mississippi Canyon Blocks 695 and 696 in the deepwater Gulf of Mexico.

Chevron Corp. operates the field with a 62.5% working interest, and Kerr-McGee Corp. holds 37.5%.

Under terms of one agreement, Williams will spend $177 million to extend its Canyon Chief and Mountaineer pipelines, which were placed in service in May 2004 to handle production from Devils Tower field on Mississippi Canyon Block 773.

The pipelines will be extended 37 miles each to handle production from Blind Faith and the surrounding blocks. The extensions are expected to be complete by mid-2007.

The other agreement commits Williams to move natural gas from the Blind Faith discovery through its Mobile Bay, Ala., processing plant and its Transco and Gulfstream interstate pipeline systems. Also, the company has an option to fractionate recovered NGLs from Blind Faith at its facilities in Baton Rouge or Paradis, La.

Blind Faith field, which has an estimated gross resource potential exceeding 100 million boe, is expected to initially produce 30,000 b/d of oil and 30 MMcfd of gas in the first half of 2008 (OGJ Online, Oct. 10, 2005).