Christopher E. Smith
OGJ Pipeline Editor
HOUSTON, Oct. 6 -- Enbridge Inc. has signed a letter of intent with Chevron USA Inc., Statoil Gulf of Mexico LLC, and Marubeni Oil & Gas (USA) Inc. to construct and operate a 40-mile, 20-in. OD oil pipeline from the proposed Big Foot ultradeepwater development in the Gulf of Mexico.
Enbridge has already announced plans to construct the Walker Ridge Gathering System, providing natural gas transportation for the proposed Chevron-operated Jack, St. Malo, and Big Foot fields.
The Big Foot Oil Pipeline will reach depths of up to 5,900 ft, transporting as much as 100,000 b/d to a subsea connection on existing deepwater pipeline infrastructure.
Chevron initiated front-end engineering and design in March of a hub to develop Jack and St. Malo fields. The production facility would have capacity of 120,000-150,000 boe/d. Chevron estimates combined recoverable liquids reserves of the two fields at more than 500 million bbl (OGJ Online, Aug. 1, 2009).
Enbridge estimates the cost of the Big Foot Oil Pipeline, about 170 miles south of the Louisiana coast, at about $250 million. Combined with the Walker Ridge Gathering System project, the proposed Big Foot pipeline brings total Enbridge investment for the projects to $750 million. The equity component of the projects will be funded by internally generated cash flow and surplus balance-sheet equity, Enbridge said.
Contact Christopher E. Smith at [email protected].