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First Gas Flows from Ultra-Deepwater Development in the Eastern
Gulf of Mexico
HOUSTON--(BUSINESS WIRE)--July 20, 2007--The Atwater Valley
Producers Group, consisting of Anadarko Petroleum Corporation
(NYSE:APC), Devon Energy Corporation (NYSE:DVN), Eni (NYSE:E) and
Hydro (NYSE:NHY), along with the owners of the Independence Hub,
Enterprise Products Partners L.P. (NYSE:EPD) and Helix Energy
Solutions Group, Inc. (NYSE:HLX) today announced that first production
from the record-setting Independence Hub project has been achieved on
schedule and within budget.
Located in 8,000 feet of water on Mississippi Canyon block 920,
approximately 123 miles southeast of Biloxi, Miss., the Independence
Hub is the deepest production platform ever installed and also is the
world's largest offshore natural gas processing facility.
Natural gas production through the Hub began on July 19, 2007,
from the first of 15 subsea wells located in 10 anchor fields. The
producers expect to ramp up production toward the Hub's capacity of 1
billion cubic feet of natural gas per day (Bcf/d) by late 2007.
"The Independence project is a remarkable accomplishment by our
industry," Anadarko Chairman, President and CEO Jim Hackett said. "It
is a true testament to the collaboration of the partners and the
ingenuity of the individuals who worked to deliver these once
unreachable resources to American consumers. Together we achieved
first production on time and within budget from a world-record-setting
facility in an ultra-deep area of the Gulf where previously there was
First sales were received from the Atlas #1 well located on Lloyd
Ridge block 50. The well is expected to ramp up to a rate of
approximately 50 MMcf/d over the next week. The block was awarded as a
result of Lease Sale 181 in 2001, which opened a new area of the
eastern Gulf of Mexico to exploration. Most of the additional 14 wells
have been completed and flow-tested -- the majority of which
demonstrated flow rates above 50 MMcf/d -- and will be brought on
stream one at a time during 2007.
The Independence Hub is a 105-foot, deep-draft, semi-submersible
platform with a two-level production deck. The natural gas processed
through the Hub when operating at full capacity represents an increase
of more than 10 percent in supplies from the Gulf of Mexico. The
platform is operated by Anadarko and owned 80 percent by Enterprise
and 20 percent by Helix. Anadarko has reserved approximately 61
percent of the capacity on the Hub, Eni approximately 20 percent,
Hydro 12.5 percent and Devon 6.5 percent.
The Independence Trail pipeline, 100-percent owned and operated by
Enterprise, connects the Hub platform to onshore markets via an
interconnect with the Tennessee Gas Pipeline at Enterprise's West
Delta block 68 shallow-water manifold platform. The pipeline is
approximately 134 miles long, 24 inches in diameter and has the
capacity to transport up to 1 Bcf/d.
The Independence project set numerous world records during its
construction and installation, which include:
- The world's deepest platform in approximately 8,000 feet of
- The world's deepest subsea production tree in 9,000 feet of
water at the Cheyenne field
- The world's deepest steel catenary riser (SCR) installation
- The world's deepest export pipeline and SCR, originating in
approximately 8,000 feet of water
"We are proud to be associated with this groundbreaking project
and all of the individuals whose contributions have set new standards
in offshore engineering and technical achievement," said Enterprise
President and CEO Dr. Ralph S. Cunningham. "We're confident that
Independence will serve as the blueprint for future deepwater
development and a model of strong teamwork."
Statements in this news release regarding the companies' or
managements' intentions, beliefs or expectations, or that otherwise
speak to future events, are "forward-looking statements" within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements include those statements preceded by,
followed by or that otherwise include the words "expected," "will" or
similar words. In addition, any statements regarding possible
commerciality, development plans, capacity expansions, drilling of new
wells, future production rates, and changes in any of the foregoing
are forward-looking statements. Future results and developments
discussed in these statements may be affected by numerous factors and
risks, such as the accuracy of the assumptions that underlie the
statements, the success of the oil and gas exploration and production
programs, the price of oil and gas, drilling risks, uncertainties in
interpreting engineering data, demand for consumer products for which
the companies' oil and gas businesses supply raw materials, the
financial resources of competitors, changes in laws and regulations,
the ability to respond to challenges in international markets
(including changes in currency exchange rates), political or economic
conditions in areas where the companies operate, trade and regulatory
matters, general economic conditions, and other factors and risks
identified in the Risk Factors section of the companies' Annual
Reports on Form 10-K and other U.S. Securities and Exchange Commission
filings. Actual results and developments may differ materially from
those expressed or implied in this news release.
Details on Anchor Fields:
Atlas and Atlas NW (Lloyd Ridge blocks 5/49/50)
Anadarko discovered the Atlas field in June 2003 in 9,000 feet of
water. A satellite discovery, Atlas NW, followed in January 2004.
Anadarko holds a 100-percent interest in the fields.
Jubilee (Atwater Valley blocks 305/349 and Lloyd Ridge blocks
Anadarko discovered the Jubilee field in April 2003 in 8,800 feet
of water. Anadarko holds a 100-percent interest in the field.
Merganser (Atwater Valley blocks 36/37)
Merganser was discovered in December 2001 by a subsidiary of
Anadarko. It is located in a water depth of 7,900 feet. Anadarko
operates the field with a 50-percent working interest. Devon Energy
holds the remaining 50-percent working interest.
San Jacinto (DeSoto Canyon blocks 618/619)
Natural gas was discovered at the San Jacinto field in April 2004
in 7,850 feet of water. Eni operates the field with a 53.3-percent
working interest. Hydro holds a 26.7-percent working interest and
Anadarko has a 20-percent working interest.
Spiderman (DeSoto Canyon blocks 620/621)
Anadarko discovered the Spiderman field in November 2003 in a
water depth of 8,087 feet. Anadarko is the operator and holds a
45-percent working interest. Eni holds a 36.7-percent interest and
Hydro holds an 18.3-percent interest.
Vortex (Atwater Valley blocks 217/261 and Lloyd Ridge blocks
The Vortex field was discovered in December 2002 and is located in
a water depth of 8,344 feet. Anadarko holds a 100-percent interest in
Mondo NW (Lloyd Ridge blocks 1/2)
Anadarko discovered the Mondo NW field in December 2004 in
approximately 8,300 feet of water. Anadarko operates Mondo NW with a
50-percent working interest. Murphy Exploration & Production Company
holds the remaining 50-percent working interest.
Q (Mississippi Canyon blocks 960/961/1004/1005)
The Q field was discovered in June 2005 in 7,925 feet of water. Q
is operated by Hydro with a 50-percent working interest. Eni holds the
remaining 50-percent working interest.
Cheyenne (Lloyd Ridge block 399)
Anadarko discovered the Cheyenne field in January 2005. It has the
world's deepest subsea production tree in approximately 9,000 feet of
water. Anadarko holds a 100-percent interest in the field.
Anadarko Petroleum Corporation's (NYSE:APC) mission is to deliver
a competitive and sustainable rate of return to shareholders by
exploring for, acquiring and developing oil and natural gas resources
vital to the world's health and welfare. As of year-end 2006, the
company had 3.0 billion barrels-equivalent of proved reserves, making
it one of the world's largest independent exploration and production
companies. For more information about Anadarko, please visit
Devon Energy Corporation (NYSE:DVN) is an Oklahoma City-based
independent energy company engaged in oil and gas exploration and
production. Devon is one of the world's leading independent oil and
gas producers and is included in the S&P 500 Index. For additional
information, visit www.devonenergy.com.
Eni SpA (NYSE:E) is an integrated energy company, committed to
growth in the activities of finding, producing, transporting,
transforming and marketing oil and gas. In all areas in which the
company operates, it can boast an excellent level of competence and
strong international market positions. Eni is active in about 70
countries with a staff of 73,572 people and the company is listed on
both the Milan and the New York (NYSE) stock exchanges. Visit
Enterprise Products Partners L.P. (NYSE:EPD) is a publicly traded
partnership with an enterprise value of more than $19 billion that
provides midstream energy services to producers and consumers of
natural gas, natural gas liquids and crude oil in North America.
Enterprise transports natural gas, NGLs and crude oil through more
than 35,000 miles of onshore and offshore pipelines. Services include
natural gas transportation, gathering, processing and storage; NGL
fractionation (or separation), transportation, storage, and import and
export terminaling; crude oil transportation and offshore production
platform services. For more information, visit Enterprise on the web.
Enterprise Products Partners L.P. is managed by its general partner,
Enterprise Products GP, LLC, which is wholly owned by Enterprise GP
Holdings L.P. (NYSE:EPE), a publicly traded GP partnership with an
enterprise value of more than $6 billion. For more information on
Enterprise GP Holdings L.P., visit www.enterprisegp.com.
Helix Energy Solutions (NYSE:HLX), headquartered in Houston,
Texas, is an international offshore energy company that provides
development solutions and other key life of field services to the open
energy market as well as to our own oil and gas business unit. That
business unit is a prospect generation, exploration, development and
production entity. Employing our own key services and methodologies,
we seek to lower finding and development costs, relative to industry
Hydro (NYSE:NHY) is one of the world's leading suppliers of energy
and aluminum, with 33,000 employees in nearly 40 countries. For
additional information, please visit www.hydro.com.
CONTACT: Anadarko Petroleum Corporation
John Colglazier, 832-636-2306
Chris Campbell, 832-636-8434
John Christiansen, 832-636-8736
Paula Beasley, 832-636-8765
Devon Energy Corporation
Zack Hager, 405-552-4526
Brian Engel, 405-228-7750
Chip Minty, 405-228-8647
Claudia Carloni, +02 52 05 16 51
Gianni Di Giovanni, +02 52 03 12 87
Enterprise Products Partners L.P.
Randy Burkhalter, 713-381-6812
Rick Rainey, 713-381-3635
Helix Energy Solutions Group, Inc.
Wade Pursell, 281-618-0400
Ada Christiane Rieker, +47 22 53 84 83
Kama Holte Strand, +47 22 53 81 15
SOURCE: Anadarko Petroleum Corporation