Anadarko's Offshore Lucius Platform to Begin Production by Year's End

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Researched by Industrial Info Resources (Sugar Land, Texas)--Anadarko Petroleum's (NYSE:APC) (The Woodlands, Texas) Lucius ultra-deepwater oil and gas production platform in the Gulf of Mexico is expected to begin commercial production in the next four to six weeks, according to John Christiansen, the director of external communications. Located in 7,130 feet of water in Keathley Canyon block 875, the six wells that feed into the platform have been undergoing testing.

All major construction and installation for the development of the Lucius Oil Field in Keathley Canyon are finished, and the initial six development wells are being completed. Commissioning is in progress, with first oil production from the 80,000-barrel-per-day (BBL/d) spar expected by the end of the year.

The subsea platform and platform topsides projects each have a total investment value of $1 billion.

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Oil from the platform will be transported via the 149-mile, 115,000-BBL/d South East Keathley Canyon Oil (SEKCO) Pipeline. The SEKCO pipeline is a 50:50 joint venture between Genesis Energy LP (NYSE:GEP) (Houston, Texas) and Enterprise Products Partners LP (NYSE:EPD) (Houston).

Natural gas will be transported via the Keathley Canyon Connecter natural gas pipeline, which is owned by Discovery Gas Transmission LLC (Houston), a 60:40 joint venture between Williams Pipeline Company, which is part of the Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma), and DCP Midstream LLC (Denver, Colorado), which is a joint venture between Phillips 66 (NYSE:PSX) (Houston) and Spectra Energy (NYSE:SE) (Houston). The 405 million-standard-cubic-foot-per-day (MMSCFD) pipeline connects the Lucius Platform to ST-283-J.

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Anadarko used the drill ships Ensco 8500 and Noble Bob Douglas to finalize the completions of the initial six development wells. Anadarko has had the Noble Bob Douglas under contract since late 2013. The co-owners of the Lucius Spar previously signed a contract in 2011 allowing natural gas in the Hadrian South field, which lies south of the Lucius, to flow to the gas processing facility on the Lucius. The Hadrian South co-owners will pay a production-handling fee, and gas from this field should be flowing in the next two months.

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