Murphy gas discovery to be linked to Independence Hub

Dachsund/Mondo prospect in Eastern Gulf turns up 70 feet of gas pay in ‘high-quality’ reservoir sands

Ray Tyson

Petroleum News Houston Correspondent

The remote Eastern Gulf of Mexico has produced yet another “ultra-deepwater” natural gas discovery that is expected to be tied back to a central processing facility to be known as Independence Hub when completed and brought on stream in 2007.

Operator Murphy Oil, which owns 50 percent of the discovery, evidently waited until an appraisal well confirmed the discovery on the so-called South Dachsund/Mondo Northwest prospect before announcing the find on Jan. 18.

Murphy specifically drilled the discovery well on Lloyd Ridge block 2 then successfully appraised the discovery with a sidetrack having a bottom-hole location on Lloyd Ridge block 1, located just west of the initial discovery, the company said.

The discovery well and sidetrack encountered “high-quality, gas-bearing reservoirs in three Miocene sands,” Murphy said, adding that the sidetrack alone penetrated more than 70 feet of “true vertical” gas pay.

Murphy did not provide reserves estimates. However, it would appear the discovery, like others in the area, is not large enough to warrant its own stand-alone production facility.

“The discovery is expected to be tied back to the Independence Hub,” Murphy said.

Independence Hub, to be located on Mississippi Canyon Block 920, will be situated roughly 10 miles northwest of the prospect, which Murphy calls the discovery South Dachsund and 50 percent partner Anadarko Petroleum calls it Mondo Northwest. Murphy said that Anadarko, a key player in the region, will operate any future development of the prospect.

Independence Hub to collect gas from deep fields

In addition to Murphy and Anadarko, exploration and production independents Kerr-McGee, Devon Energy, Dominion Exploration & Production and Spinnaker Exploration make up the Atwater Valley Producers Group, which hold varying interests in fields to be tied into Independence Hub. Marine construction company Cal Dive International recently took a 20 percent stake in the hub.

Enterprise Products Partners, a leading provider of midstream energy services, was selected by the producers group to design, construct and install Independence Hub, a 105-foot deep draft, semi-submersible platform with a two-level production deck.

The platform, estimated to cost $385 million, will be owned by Enterprise and operated by Anadarko, which holds interests in five of the eight anchor fields, including Atlas, Atlas NW, Jubilee, Spiderman and now South Dachsund/Mondo Northwest. The hub, which will be capable of processing 850 million cubic feet of gas per day, is being designed to handle production from up to 10 additional fields.

Enterprise also will own, install and operate 140 miles of 24-inch pipeline named Independence Trail. The pipeline, estimated to cost $280 million, is to deliver production from Independence Hub into the Tennessee Gas Pipeline located on West Delta Block 68.