Eni to start Longhorn production in 2009

Eni SPA's Longhorn Phase II and Appaloosa oil and gas fields in the Gulf of Mexico will start production in July and in July 2010, respectively.

Uchenna Izundu
OGJ International Editor

LONDON, Jan. 29 -- Eni SPA's Longhorn Phase II and Appaloosa oil and gas fields in the Gulf of Mexico will start production in July of this year and in July 2010, respectively.

Both fields are in the Greater Longhorn acreage in the central Mississippi Canyon lease area, 60 miles off Louisiana. Greater Longhorn is estimated to hold 100 million boe.

Longhorn Phase II, on MC Blocks 502 and 546, is expected to cost $112.9 million and will have peak production of 30-50 MMscfd from an additional subsea well that will be tied in to the Corral platform. Eni, holding a 75% interest, will operate the well. Partner Nexen Petroleum USA Inc. holds 25%. The blocks lie in 2,400 m of water.

Appaloosa is in 2,800 m of water on MC Blocks 459, 460, and a portion of MC 503 and 504. The development is expected to cost $228.1 million. Oil processing capacity at Corral platform will be upgraded to accommodate the first production of Appaloosa's oil, which is expected to flow at a peak of 7,500 b/d.

Both developments will boost the company's production and reinforce its operating presence in the Mississippi Canyon area. "The Eni-operated Corral platform will become a significant oil and gas processing hub at the edge of the Shelf region in the Gulf of Mexico with further synergies available in the Greater Longhorn area from an appraisal campaign planned to commence in second-half 2009," Eni said.

Contact Uchenna Izundu at uchennai@pennwell.com.

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