El Paso Energy Partners to build gas pipeline for Red Hawk field

By OGJ editors

HOUSTON, Oct 14 -- El Paso Energy Partners LP has finalized agreements with Red Hawk field's equal-interest partners—Ocean Energy Inc. and Kerr-McGee Oil & Gas Corp.—to build and operate a new 16-in. natural gas gathering pipeline from the field, which lies on the deepwater Garden Banks area of the central Gulf of Mexico.

The 86 mile pipeline, which will be capable of transporting as much as 330 MMcfd of gas, will originate in 5,300 ft of water at Red Hawk field and connect to the ANR Pipeline Co. system at Vermilion Block 397. El Paso plans to place the new pipeline in service during the second quarter of 2004.

Development drilling at Red Hawk field, which was discovered in October 2001, is expected to begin in early 2003. With estimated proven reserves of more than 250 bcf of gas, Red Hawk is expected to have an initial production capacity of 120 MMcfd and ultimate capacity of 300 MMcfd.

Field operator Kerr-McGee will develop the field using the world's first cell spar, currently being developed by Technip Offshore Inc. (OGJ, Sept. 2, 2002, p. 8). The producers also expect the Red Hawk production facility to become a host structure for the cost-effective development of nearby satellite fields.

"The Red Hawk project is structured similarly to many of our other deepwater infrastructure projects, with a solid anchor field strategically located in an active exploratory area and being developed by experienced operators like Kerr-McGee and Ocean," said Robert G. Phillips, El Paso Natural Gas Co. CEO. ". . .We believe the Red Hawk gathering system could lead to additional opportunities to serve producers in this (Garden Banks-Green Canyon) area, he said.