GULF OF MEXICO

David Paganie , Houston

Helix strikes oil on Danny

Helix Energy Solutions’ subsidiary Energy Resource Technology GoM logged oil sands with its Danny exploration well in Garden Banks block 506 in 2,700 ft (823 m) of water. The company estimates reserves potential of about 50 bcfe.

The well is being tied back subsea with the Noonan discovery to a Helix-owned and operated platform in East Cameron block 381 in 370 ft (113 m) of water. First production is expected in the second half of 2008.

In other deepwater drilling news, Transocean’sDeepwater Nautilus has spudded the Shell-operated exploration well Vicksburg in De Soto Canyon block 353 in 7,457 ft (2,273 m) of water. Pre-drill resource estimate is between 200 and 500 MMboe, according to partner, Nexen.

Independence Hub on stream

First production atIndependence Hub started on July 19, reports the Atwater Valley Producers Group (Anadarko, Devon, Eni, and Hydro) and Hub owners Enterprise Products Partners LP and Helix Energy Solutions Group Inc. The producers expect to ramp up production to 1 bcf/d by the end of the year.

The Independence Hub is the deepest production platform, in 8,000 ft (2,438 m) of water 123 mi (198 km) off Biloxi, Mississippi. It also is the world’s largest offshore gas processing facility.

First sales were from the Atlas No. 1 well on Lloyd Ridge block 50. Most of the additional 14 wells have been completed and flow-tested and will be brought on stream one at a time during the year.

TheIndependence Hub is a 105-ft (32-m), deep-draft, semisubmersible platform with a two-level production deck. The platform is operated by Anadarko Petroleum Corp. and owned 80% by Enterprise and 20% by Helix. Anadarko has reserved approximately 61% of the capacity on the Hub, Eni 20%, Hydro 12.5%, and Devon Energy Corp. 6.5%.

The 134-mi (216-km) 24-in. (61-cm) Independence Trail pipeline, owned and operated by Enterprise, connects theHub to shore via an interconnect with the Tennessee Gas Pipeline at Enterprise’s West Delta block 68 shallow-water manifold platform.

When operating at full capacity, production through theHub will represent a 10% increase in supplies from the Gulf of Mexico and comprise 1.5% of overall US gas supply.

New dock for MinDOC

Gulf Island Fabrication Inc. (GIFI) is investing $24 million in a new graving dock for construction and float-out of its 12,000-ton (10,886-metric ton) MinDOC hull, which will measure 485 ft (148 m) tall by 202 ft (62 m) wide. The dock will be installed at Gulf Marine Fabricators in Aransas Pass, Texas, where the hull is being built. The topsides are under construction at Gulf Island’s facility in Houma, Louisiana.

This dock will be the first one of its kind on the Gulf Coast, said Kerry Chauvin, chairman, president, and CEO, in a letter to GIFI shareholders. A graving dock is essentially a large excavated hole in the ground with proper foundations and de-watering systems, he explained. After the hull is fabricated, the dock will be flooded to allow the structure to float out in preparation for wet-tow to its final deployment site.

The dimensions of the graving dock are set at 600 ft (183 m) long by 250 ft (76 m) wide by 40 ft (12 m) deep.

The MinDOC is being built for ATP’s Telemark Hub project in Mississippi Canyon blocks 941, 942, and 943, and Atwater Valley block 63. Installation in 4,000 ft (1,219 m) of water is expected in mid-2008.

Perdido update

Shell handed out contracts to ABS and MCS for certification services during various phases of its Perdido development. ABS won the contract to act as the Certification Verification Agent (CVA) for the MMS for the regional hub truss spar.

The company will perform technical reviews of the structural elements of the hull, topsides, mooring systems, and suction piles. ABS also will provide stability reviews and CVA services during integration and installation of the facility.

MCS picked up the contact to certify the spar’s top tensioned risers through all phases of the project. Tasks will involve analysis, materials and component selection, qualification testing, equipment inspection verification, and monitoring the offshore installation. Under new MMS requirements, floating platform risers must be tested by a certified verification agent.

Shell issued a third Perdido contract, to Delmar Systems Inc., for EPIC services for preset MODU moorings. Shell secured the semisubmersible rigNoble Clyde Boudreaux to conduct development drilling on the field.

The rig is connected to 16 preset polyester moorings attached to the seafloor using 10,000 ft (3,048 m) of 7 3/8-in. (18.7-cm) polyester mooring ropes and 2,000 ft (610 m) of 4-in. (10-cm) steel wire rope. The rigging is connected to vertically loaded anchors using Delmar’s patented subsea connector.

Shell’sPerdido spar is scheduled for installation in 2009 in Alaminos Canyon block 857 in 7,817 ft (2,383 m) of water.

McMoran to acquire shelf properties

McMoran Exploration Co. has entered into an agreement with Newfield Exploration Co. to purchase the company’s producing shallow water properties for $1.1 billion in cash. The deal is expected to close in the third quarter.

Included in the transaction are 125 fields on 146 offshore blocks producing 270 MMcfe/d of gas. Proved reserves are 327 bcfe of gas across 1.3 million gross acres.

McMoran is also acquiring a 50% interest in Newfield’s non-producing leases (19 blocks/100,000 gross acres) on the shelf and an interest in leases associated with the Treasure Island ultra deep prospect inventory. After closing, McMoran will become operator of Treasure Island. Newfield plans to retain its shelf exploration team and will continue to drill shelf prospects in the GoM.

Meanwhile, McMoran reports drilling results on two shelf wells. The company has logged 189 ft (58 m) of net pay in five zones in the Rob-L section over a 364-ft (111-m) gross interval on the Flatrock prospect in OCS block 310 in South Marsh Island block 212.

Parker Drilling’s barge rig76B drilled the well to 16,500 ft (5,029 m) MD in 212 ft (65 m) of water, and a completion liner has been set. The company plans to deepen the well to 19,000 ft (5,791 m) to test the Operc section. McMoran also is permitting three offset locations to further test the area.

Flatrock, according to the company, represents the deeper section of the Tiger Shoal field, which produced over 3 tcfe of natural gas from wells above 12,500 ft (3,810 m).

McMoran also reports drilling results on its Cottonwood Point prospect in Vermilion block 31. Drilling toward 21,000 ft (6,401 m) TD with Hercules Offshore’s submersible rigTHE 77, logs indicated 60 ft (18 m) of net pay in three sands.

Mariner Energy also reports a find on the shelf. The company’s Red Lion (Sabine Pass block 8) well, drilled to 14,469 ft (4,410 m) TMD/11,393 ft (3,473 m) TVD, encountered 40 ft (12 m) of net gas pay in a single zone. Reserves are estimated in the range of 15 to 30 bcfe of natural gas. First production is expected in 4Q 2007. Partners in the well are Hydro GoM and Hunt Oil.

Plains to acquire Pogo for $3.6 billion

Plains Exploration & Production (PXP) Co. and Pogo Producing Co. have signed an agreement whereby Plains will acquire Pogo in a stock and cash transaction valued at $3.6 billion. The respective boards of directors have approved the agreement, which is pending stockholder approval. Completion of the merger is expected in the fourth quarter.

Post closing, it is anticipated that the PXP stockholders will own approximately 66% of the combined company and Pogo stockholders will own approximately 34%. At year-end 2006, Pogo reported 219 MMboe of proven reserves.

Eni completes asset acquisition

Eni has completed the $4.7-billion acquisition of Dominion’s upstream assets. As a result, Eni expects its production in the GoM to increase from 36,000 boe/d to more than 110,000 boe/d in the second half of 2007. The company gains 222 MMboe of 2P reserves.

The main fields included in the transaction are producing fields Devils Tower, Triton, and Goldfinger (75% operated), and Front Runner (37.5%), as well as developing fields San Jacinto (53.3% operated), Q (50%), Spiderman (36.7%), and Thunderhawk (25%).

Eni holds interest in 462 leases in the GoM (including 263 from the Dominion acquisition).

Houston-based Hercules Offshore Inc. also has finalized an acquisition. The company has completed the acquisition of Todco, creating the world’s fourth largest fleet of jackups and the world’s largest fleet of barge drilling rigs and liftboats. Hercules operates a fleet of 33 jackup rigs, 27 barge rigs, 65 liftboats, three submersible rigs, nine land rigs, and one platform rig. The company plans to continue growing through acquisitions.

Mooring problems delay Tahiti

Chevron says its Tahiti development will face delays because of “metallurgical” problems discovered in the spar’s mooring shackles. This problem, however, does not impact the integrity of the spar’s hull, according to Chevron.