McMoRan acquires remaining interest In Gulf of Mexico production facility

Ray Tyson

Exploration and production independent McMoRan Exploration has agreed to acquire K1 USA Energy Production’s 66.7 percent interest in production facilities and related oil reserves on Main Pass block 299 in the Gulf of Mexico, McMoRan said Dec. 29. The deal gives McMoRan a 100 percent stake in the so-called K-Mc Venture. McMoRan said it will repay the venture’s $8 million debt and release K1 USA from future abandonment obligations related to the facilities.

Oil production from Main Pass 299 is currently shut-in due to extensive damage caused by Hurricane Ivan last September to a third-party offshore terminal facility, which provided throughput services for Main Pass 299 sour crude oil.

Before the hurricane, the Main Pass 299 field produced about 2,800 barrels of oil per day. McMoRan said it was evaluating alternative plans for the future sale of Main Pass 299 production.