Three U.S. companies plan to lay and operate a $50 million oil gathering system in the Central Gulf of Mexico.
The 160,000 b/d pipeline system will serve facilities in the Main Pass and Viosca Knoll federal planning areas. That's where several producers recently have disclosed discoveries scheduled to begin going on stream within the next couple of years. The system also could gather oil from deepwater wells in the Mississippi Canyon planning area.
Units of Amoco Pipeline Co., CNG Energy Services Corp., and PanEnergy Field Services Inc. will own equal shares in the system. It is an expansion of the oil gathering portion of a project announced by the CNG and PanEnergy units last summer (see map, OGJ, July 17, 1995, p. 24).
Producers who have committed production to the project include CNG Producing Co., Oryx Energy Co., Coastal Oil & Gas U.S.A., Chieftain International Inc., and Amoco Production Co.
Project plans include laying 64 miles of 18 in. pipeline from Main Pass Block 225 to a Shell crude oil terminal on Main Pass Block 69. From there, oil is to flow to shore in Louisiana through the Shell Delta Pipeline System.
Partners also plan to lay 17 miles of 8 in. line from Main Pass Block 225 to the Neptune production spar to be installed next September in 1,930 ft of water on Viosca Knoll Block 826.
Construction of the pipeline is to begin next month, with service to start by next November.
PanEnergy Field Services will manage construction on behalf of the partnership. Amoco Pipeline will operate the pipeline and market capacity on the system.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.
