BP Amoco awards Gulf of Mexico engineering contracts

BP Amoco PLC on Monday said it has awarded contracts to Paragon Engineering Services Inc. and Intec Engineering Inc., both of Houston, to do preliminary engineering work on new oil and gas transportation infrastructure planned for the Gulf of Mexico.


BP Amoco PLC on Monday said it has awarded contracts to Paragon Engineering Services Inc. and Intec Engineering Inc., both of Houston, to do preliminary engineering work on new oil and gas transportation infrastructure planned for the Gulf of Mexico.

The first year of the contracts is valued at $8 million. Among the areas awaiting infrastructure are the southern portions of Mississippi Canyon and Atwater Valley areas, as well as the Green Canyon area. Deepwater production is scheduled to begin in these areas as early as 2003.

Paragon will focus on the onshore portion of the project, plus continental shelf offshore pipelines and potential booster stations, while Intec will concentrate on the deepwater infrastructure. Paragon also will provide overall project administrative support to BP Amoco.

Both companies will help BP Amoco review and select routes, equipment, and transportation system components.

This work follows on BP Amoco's previously announced plan to build oil and gas transportation infrastructure to reach the deepwater Gulf of Mexico, where large discoveries have been made.

"We are very anxious to get this work started,'' said Jerry Wenzel, BP Amoco general manager for this offshore transportation project. "As we prepare to build facilities to develop our deepwater portfolio, we must assure the availability of transportation systems to deliver this oil and gas to market.''

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