McDermott International, Inc. announced today that one of its subsidiaries has been awarded a contract by the Discovery system for offshore facilities in the Gulf of Mexico. The value of this contract is included in McDermott’s second quarter 2012 backlog.
Williams Partners L.P.owns 60 percent of the Discovery system and operates it. DCP Midstream Partners, LP owns the other 40 percent of the Discovery system.
The project is to deliver new junction facilities for Discovery’s Keathley Canyon Connector™ pipeline system with a 3,300-ton, four-leg platform in 350 feet of water. The unmanned platform will provide pipeline junction facilities for incoming deepwater pipelines from the Hadrian South and Lucius fields and for outgoing shallow-water pipelines to shore.
Fabrication is expected to commence this summer at McDermott’s Morgan City facility in Louisiana. Offshore installation is expected to commence during the third quarter of 2013, and is intended to be ready for operational start-up before the end of the year.
McDermott’s deepwater combination heavy lift and pipelay vessel DB50 is expected to perform the installation. The DB50 has recently undergone extensive enhancement to its power and propulsion systems, and has a new deepwater lowering system.
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Production from Caesar/Tonga, with an estimated resource base of 200 to 400 million barrels of oil equivalent (BOE), is expected to ramp up to approximately 45,000 BOE per day from the first three subsea wells. A fourth development well is expected to be drilled and completed later this year, as part of the planned Phase I development.
“We are excited to announce we began producing high-quality oil from the Caesar/Tonga development on March 7, 2012; an outstanding accomplishment by our project team consisting of co-owners, our employees and contractors,” said President and Chief Operating Officer Al Walker. “Our ability to safely achieve cost savings of almost $1 billion by leveraging our existing, operated infrastructure in the deepwater Gulf of Mexico continues to demonstrate the value of our hub-and-spoke approach to exploration and development. Caesar/Tonga is yet another capital-efficient, deepwater project in our Gulf of Mexico portfolio that we have successfully developed. This development and the Gulf of Mexico are an important part of Anadarko’s liquids growth and our domestically produced energy.”
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