BP and Shell to build deepest gas gathering system in Gulf of Mexico

By the OGJ Online Staff

HOUSTON, May 17 -- BP PLC, Houston, and Shell Gas Transmission LLC, Houston, Thursday said they would build a $150 million gas pipeline to the ultradeepwater Gulf of Mexico.

The 100-mile Okeanos pipeline will have a capacity of at least 1 bcfd. It will be the deepest gas-gathering system in the Gulf of Mexico, operating in more than 6,000 ft of water.

BP will operate Okeanos Gas Gathering Co. with two-thirds ownership. Shell Gas Transmission will have the rest.

Okeanos will connect ultradeepwater developments with the Destin Pipeline, which lands in Mississippi and interconnects with five interstate pipelines that serve eastern US markets.

BP's Pascagoula gas processing plant will treat gas from the Okeanos pipeline transported by Destin. Okeanos is the first of the Mardi Gras Transportation System projects that will serve BP developments.

The Okeanos gas pipeline will be built in two phases, beginning in 2002. Shell Gas Transmission will manage construction of the first segment, a 74-mile, 24-in. pipeline to gather gas produced from the Shell Exploration & Production Co.-BP Na Kika project. Na Kika is under development by Shell 150 miles southeast of New Orleans.

The project consists of six fields tied back to the Gulf of Mexico's deepest permanently moored semisubmersible development and production system, operating in 6,350 ft of water.

Construction of the first segment of the Okeanos pipeline will be completed in time for the 2003 start-up of Na Kika.

BP will be construction manager for the second phase, a 26-mile segment to connect BP and ExxonMobil Corp.'s Crazy Horse field to Okeanos near Na Kika. Construction on this segment will be completed in 2005 in time for the Crazy Horse start up.