GULF OPERATORS RESUMING PRODUCTION

A. D. Koen
Gulf Coast News Editor

Gulf of Mexico operators last week were gradually restoring production at installations struck by Hurricane Andrew.

The Minerals Management Service continued receiving reports of more damage.

By the end the day Sept. 8, MMS had received reports of damage to 83 pipeline segments and 193 platforms and satellite installations. Damage reports listed 112 installations with structural damage, 13 platforms toppled and five leaning, and 30 satellite platforms toppled and 33 leaning.

MMS estimates that 2,000 of 3,852 oil and gas platforms operating in the Gulf of Mexico received hurricane force winds as Andrew churned across the gulf from Florida toward Louisiana. Of those 2,000, about 800 platforms were installed in the gulf before 1972 when stricter structural specifications went into effect.

Before 1972, offshore oil and gas structures were built to withstand 25 year storm conditions. Structures built since 1972 have been required to withstand 100 year storms.

By midweek, MMS was estimating Hurricane Andrew will cost the U.S. oil and gas industry more than $200 million.

But despite the extent of damage the storm inflicted on oil and gas installations in the gulf, "it pales in comparison to the misery and suffering the storm caused in Florida and Louisiana," an oil company official said.

TEMPORARY ASSISTANCE

To help gulf operators deal with transportation disruptions resulting from Andrew, MMS agreed to allow:

ome small gulf oil producers to flare associated gas for a short while at sites where lost gas transportation was holding back oil production.
Shell Offshore Inc. to barge 50,000 b/d of oil normally produced into the Eugene Island Pipeline System by its Bullwinkle and Boxer platforms.

Shell began producing oil into a barge the evening of Sept. 6 and was expected to continue barging operations until the end of last week.

MMS at midweek was preparing a notice to gulf lessees requiring underwater inspections of all oil and gas facilities within a 50 mile radius of the path of Andrew's eye across the gulf.

MMS Director Scott Sewell reported Sept. 8 that 2.5-2.75 bcfd of gulf gas and 240,000-270,000 b/d of oil had been shut in because of Andrew.

However, Sewell said no more than 25 days will be needed to restore most oil and gas production.

"Supplies should be more than adequate to meet wintertime needs," he said.

Sewell's assurances were substantiated by reports from operators working to bring facilities back on line in Andrew's wake.

BACK ON LINE

Texaco U.S.A. expected to place the 113 mile Eugene Island Pipeline System (EIPS) back in service by last weekend. The 185,000 b/d oil pipeline was shut in Aug. 31 after technicians of operator Texaco Pipeline Inc. discovered signs that the line had lost its integrity (OGJ, Sept. 7, p. 24).

Workers had replaced about a 45 ft section of the 20 in. line, and Texaco expected to finish testing the morning of Sept. 10 and begin moving oil through the pipeline later the same day.

Before it was knocked out of commission by Andrew, EIPS was moving about 135,000 b/d of oil.

Preliminary evidence showed EIPS was damaged by a 30,000 lb anchor from the Treasure 75 semisubmersible drilling rig owned by Wilrig AS. Before the storm, Treasure 75 was anchored on South Pelto Block 7 about 4 miles east of the spot where EIPS was damaged. After the storm, the rig was discovered 2 500 ft west of the pipeline on South Pelto Block 3.

Chevron U.S.A. Inc. restored operations on West Delta Block 109, about 1,500 ft from the Intracoastal Waterway at the mouth of the Mississippi River, where mud slides had severed an oil pipeline in 182 ft of water, interrupting Texaco Block 109 production.

Before the storm, Texaco's Block 109 platform was handling about 10,000 b/d of oil and 20 MMcfd of gas.

Freeport-McMoRan Resource Partners LP, a unit of Freeport-McMoRan Inc., New Orleans, reported its sulfur production and oil and gas platforms escaped damage from the storm. Sulfur operations at Main Pass Block 299 and Caminada facilities were suspended during the hurricane but were back on production by the Aug. 29-30 weekend. Freeport-McMoRan said sulfur production was back to 75% of previous levels and should return to prehurricane volumes this month.

Oil production on Main Pass Block 299 resumed Aug. 27 and by Sept. I had averaged more than 43,000 b/d.

Oil and gas platforms of FM Properties Inc., also a Freeport-McMoRan unit, also escaped damage and were resuming production.

Three companies hired units of Offshore Pipelines Inc., Houston, to repair or inspect facilities in the gulf.

Samedan Petroleum Corp. let contract to OPI International Inc. to remove a damaged six pile platform in South Timbalier Block 172. Offshore Petroleum Divers will repair an 8 in. pipeline on South Pass Block 70 for Shell Oil Co., and Hall Houston Oil Co. hired the diving unit to perform inspection dives in the Ship Shoal and South Timbalier areas.

MORE PIPELINE REPAIRS

Trunkline Gas Co., a subsidiary of Panhandle Eastern Pipe Line Co., last week was on schedule to restore 800 MMcfd of gas transportation capacity on its Terrebonne Offshore Pipeline System (TOPS).

Trunkline on Sept. 9 returned to service valving platform T-25 on Ship Shoal Block 139, restoring about 350 MMcfd of TOPS capacity. By the afternoon of Sept. 9, Trunkline had received nominations to begin moving 100 MMcfd of gas when service was restored at platform T-25.

Trunkline expects by Nov. 1 to temporarily restore another 450 MMcfd of TOPS capacity by using subsea piping to bypass the T-21 valving platform on South Timbalier Block 72, also damaged by the storm.

The company said those repairs will allow it to supply gas during the winter heating season. A decision will be made during the winter whether to replace T-21 platform when permanent repairs are made in spring 1993.

Tenneco Inc. at midweek was making arrangements to replace a 50 MMcfd gas gathering platform toppled by Andrew on South Timbalier Block 24. The company plans to replace the platform with subsea piping and have the repairs in service by the end of this month.

Tenneco in late August repaired a minor leak in a 16 in. gas line on East Cameron Block 281. The leak had been reported to the MMS and was included on a list of sites damaged by Hurricane. But the company said there was no evidence the leak had been caused by the storm.