Kerr-McGee to develop $600 million Constitution field in Gulf of Mexico

Petroleum News

Oklahoma City-based Kerr-McGee said Jan. 14 that its board of directors has approved a $600 million development of the company’s 100 percent owned Gulf of Mexico Constitution field utilizing a truss spar facility.

Constitution is in 5,000 feet of water at Green Canyon blocks 679 and 680. The company said the field has estimated proven and probable resources of approximately 110 million barrels of oil equivalent. The $600 million project cost includes $125 million spent to date on leases and drilling.

“A stand-alone facility at Constitution enables us to dramatically accelerate the development timetable for this significant field, therefore enhancing shareholder value. In addition, this spar will create our sixth deepwater hub, enabling us to further capitalize on our extensive acreage inventory in the Gulf of Mexico,” said Luke Corbett, Kerr-McGee chairman and chief executive officer.

Kerr-McGee said the Constitution field was confirmed by 11 penetrations into predominantly oil-bearing sands in seven hydrocarbon-bearing Pliocene reservoirs at depths from 12,500 feet to 15,000 feet.

The field will be developed with a truss spar similar in design to Kerr-McGee’s previous three truss spars and will have capacity to process 40,000 barrels of oil per day and 200 million cubic feet of gas per day.

The development plan includes five dry trees and one subsea tieback. Well bores from previously drilled appraisal wells will be used as part of the final development plan. First production is expected by mid-2006, with peak production expected to reach 40,000 bpd and 75 million cubic feet per day in 2007.