StatoilHydro sanctions Caesar Tonga development

StatoilHydro's board has sanctioned development of the Caesar-Tonga discoveries as a subsea tie-back to the Anadarko Petroleum Corp.-operated Constitution Spa in deepwater Gulf of Mexico.

Uchenna Izundu
OGJ International Editor

LONDON, Apr. 2 -- StatoilHydro's board has sanctioned development of the Caesar-Tonga discoveries as a subsea tie-back to the Anadarko Petroleum Corp.-operated Constitution Spa in deepwater Gulf of Mexico.

Under the first phase of development, there will be four wells expected to produce an average 40,000 b/d with first oil scheduled for 2011.

Caesar-Tonga consists of three discoveries, Tonga and Tonga West, acquired by Statoil ASA in 2005 as part of the Alberta-based EnCana Corp. acquisition; and Caesar, acquired from Houston-based Plains Exploration & Production Co. in 2006.

Caesar-Tonga is south of the Tahiti development, which will start production this summer.

StatoilHydro's asset manager Randy Perry said, "We are expecting similar sand qualities, which should give us good recovery rates from the field."

In February, Anadarko said it would spend 20% of its 2009 capital program of $4-4.5 billion on its mega projects including Jubilee field off Ghana, the Caesar-Tonga complex, and the El Merk project in Algeria.

StatoilHydro has 23.55% working interest in the development. Other co-owners are Shell and Chevron.

Contact Uchenna Izundu at uchennai@pennwell.com.

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